Counseling comes before closing
Federally insured reverse mortgages, known as HECM loans, generally require the borrower to complete counseling with an approved independent counselor before the loan can proceed. The counselor provides a certificate that the lender needs.
Have a closing coming up? The closing package (signing, scanbacks and courier).
The signing agent does not provide this counseling and must not try to. Their role starts after the lender sends closing documents.
What the closing package includes
There is a note, a security instrument, and disclosures about how the balance grows over time, because interest and fees are added to the loan instead of paid monthly. Borrowers also sign statements about continuing to live in the home, paying taxes and insurance, and keeping the property maintained.
These obligations matter. The agent can point to where they appear, but an attorney or the counselor is the right person to explain what they mean for your family.
Signing with care
Many borrowers want a family member present. That is fine in most cases, but the signer must sign willingly and understand what they are doing. A notary can refuse to proceed if a signer appears confused, pressured or unable to communicate. That is not a judgment about the loan, just a duty of the notary.
Some signings happen in a home, a care facility or a hospital. Hospital notary visits need advance coordination with staff.
Third parties and what to watch
Take your time and avoid anyone who rushes you. Heirs or relatives may have views, but the borrower decides. If you are unsure, pause and consult an attorney, a housing counselor or a trusted adviser before signing.
Be careful of anyone who asks you to move money or sign blank pages. A legitimate closing never involves blank signature lines.
After closing
A rescission period typically applies, so funds are generally not released on the day you sign. The borrower receives copies, and the lender or servicer sets up how payments, if any, and annual occupancy checks work.
Questions to settle before the appointment and signs of a trustworthy process
Who will live in the home, and are all of them aware of the loan? What happens to the loan if the borrower moves out for an extended stay, such as in a care facility? Who is responsible for property taxes and insurance, and how will they be paid? What are the plans for the home when the loan comes due?
These questions are best handled with the counselor and an elder-law or estate attorney, not at the signing table. A prepared household makes for a calmer closing, and it protects the borrower from surprises later.
A careful lender gives you time to review documents, welcomes questions from your attorney and family, and never pressures you to sign on the spot. The counseling certificate is dated before the application proceeds. Costs are shown clearly on the disclosures.
Be wary of cold calls, promises of free money, or anyone who wants to be paid for steering you to a lender. If an offer arrives through an unsolicited ad, slow down and ask a trusted adviser.
Common questions
Does the notary explain the reverse mortgage?
No. A notary identifies signers and notarizes signatures. Terms are explained by the lender, the counselor or your attorney.
Can a family member sign for a parent?
Only with valid legal authority such as a properly executed power of attorney that the lender accepts. Lenders often have strict rules, so ask first.
What if the borrower seems confused?
The notary may decline to notarize. The appointment can be rescheduled once concerns are addressed.
More notary guides
- Mortgage Escrow Accounts: Taxes, Insurance and Shortages
- Hybrid and E-Closings: Digital Mortgage Closings Explained
- Purchase Mortgage Signing: What Happens at the Table
This guide is general information, not legal advice. Fees and procedures change; check with the office involved or an attorney for your situation.