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FREQUENTLY ASKED QUESTIONS


If you selected a line of credit as part of your payment plan option, you may request those funds by sending in a written request to the servicing department. You will receive a Line of Credit draw request form with each monthly statement, provided that you have available funds remaining. The draw request form can either be mailed to us (our address is on the form), or faxed to us toll free at (855) 228-4881.

Print the Line of Credit Request Form

Once we receive your signed request, it will be processed and we will deposit the funds electronically in your bank or credit union account within 5 business days. If you prefer your funds to be paid by check, one will be mailed to you within 5 business days of the receipt of your request. Please allow an additional 7 days for mail delivery.

Don’t forget! Your reverse mortgage loan may be backed by the U.S. Government’s Department of Housing and Urban Development (HUD).

(If your loan is not part of the Home Equity Conversion Mortgage Program, it will not be backed by HUD.)

When you took out your reverse mortgage, you signed documents acknowledging your responsibility to make your property tax payments on time, and to keep your homeowner’s insurance and flood insurance (if applicable) current.

Unfortunately, these important requirements can sometimes be overlooked. However, by not paying your taxes or insurance on time, it could cause your reverse mortgage to be placed in default status.

If your mortgage is placed in a default status due to unpaid property charges, we may order an inspection of your property to ensure that your property is occupied and appropriately maintained. You will be responsible for the fees associated with this inspection, which range from $15.00 - $60.00. Costs are based on the market price for such services in a particular state/locale. There may be an additional charge if the service is performed on a rush basis or ongoing maintenance is required. Inspections may continue on a monthly basis as applicable.

View the fees that may be associated with your reverse mortgage.

If you ever experience difficulties paying your taxes or insurance, please call our office at (855) 683-3095 so that we can work together to solve the problem.

Some states have funding to assist senior homeowners with the repayment of property tax, property insurance and, in some cases, other property charges, in cases where those property charges have been made by the reverse mortgage servicer. In some cases, senior homeowners may also be eligible for up to 12 months of additional assistance with paying these property charges. Below you will find information that will help you research options that may be available to you. View our Homeowner Assistance page for more information.

You can always seek the advice, free of charge, of a HUD counselor by calling their toll-free number at (800) 569-4287.

If your Reverse Mortgage is in default, a Deed in Lieu or Short Sale may help avoid foreclosure proceedings.These options are available to you and we are here to help!

  • Ease of Process. We do all coordination; you only need to sign the documents
  • Avoids the property from being vacant for a longer period of time.
  • Release of obligations secured by the reverse mortgage.
  • Keep the home in the family, purchase at 95% of the current appraised value
  • Prevent a foreclosure
  • Save money by avoiding fees added to your loan balance
  • Control the process: peace of mind

Contact Us
If you are interested in discussing a Deed in Lieu or Short Sale options please feel free to contact us.
By Phone: Call us directly toll free at (855) 683-3095, from 7 am to 7 pm CST Monday through Thursday and 7 am to 5 pm CST on Friday.
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Property Tax Deferrals

Tax deferrals are only allowed while you have a reverse mortgage if the deferral program creates a lien that is subordinate to the first and second liens created by the reverse mortgage.

Property Tax Exemptions

Please be advised that as a homeowner, you may be eligible for property tax reductions from your local tax authorities in the form of exemptions. Property tax exemptions are different from the deferral programs listed above, as they are permanent reductions in your taxable amount.

Some examples of possible exemptions are:

  • Homestead exemptions for occupying your home as your primary residence,
  • Age exemptions, such as being over 65 (age limits may vary by county),
  • Disability exemptions (if you are disabled), or
  • Mortgage exemptions for having a mortgage on your property.

If you do not have any of the exemptions currently in place, we strongly encourage you to contact your city or county tax office to find out if you can take advantage of these potential savings on your annual property tax bill.

Please note that there may be instances in which you will need to re-apply for your property tax exemptions when a new mortgage is placed on your property, such as a refinance or a reverse mortgage. In order to avoid losing your tax exemption status, we urge you to contact your local tax authorities for more information.

As part of receiving your reverse mortgage, you agreed that you would live in your home as your primary place of residence. You can take vacations or leave the home for up to 12 months without defaulting on your reverse mortgage. However, please let us know if you are going to be out of the home for more than two consecutive months, so we can keep our records current for the mailing of your monthly statement.

The Reverse Mortgage Servicing Department is required by HUD to verify, on an annual basis, that you are still living in your home.

You will receive a letter from us each year, starting one year after you received your reverse mortgage. In order to certify your occupancy, you will simply need to sign your name on the document within 30 days and send it back to us.

If the Annual Occupancy Certificate Form is not signed and returned within 30 days, we may order an inspection of your property to ensure that your property is occupied and appropriately maintained. You will be responsible for the fees associated with this inspection, which range from $15.00 - $60.00. Costs are based on the market price for such services in a particular state/locale. There may be an additional charge if the service is performed on a rush basis or ongoing maintenance is required. Inspections may continue on a monthly basis as applicable.

View the fees that may be associated with your reverse mortgage.

Print the Annual Occupancy Certificate Form

If you provided a voided check at the time of your loan closing for this purpose, you do not need to do anything.

Print the Electronic Funds Transfer Form

If you did not provide a voided check at closing and would like to do so now, please mail us a voided check as well as a letter asking that your funds be sent to you via direct deposit.

If you would like to set up your funds to be direct deposited to a savings account, you will need to obtain a letter from your bank or credit union (on their letterhead) listing the savings account number, the bank or credit union’s routing number, and any names that are listed on the account. We will set up your direct deposit when we receive the letter from your bank, along with your letter requesting that we set you up on direct deposit.

It is important to note that only the borrower(s) on the reverse mortgage (or financial Power of Attorney) can be listed on the account that is used to set up the direct deposit. There is no fee charged to you for the direct deposit service.

If you are set up on direct deposit, your monthly payment will continue to be credited to your bank or credit union account on the first business day of each month.

If you elected to receive a scheduled monthly payment and requested a paper check, it will continue to be mailed to you on the first business day of each month. Please allow for a mailing time of 7 days for your check.

  • To request a change to the current payment plan option you selected for your reverse mortgage, please call the servicing department at (855) 683-3095.

  • We will discuss your options with you and payment plan change documents will be sent to you once you decide on the new payment plan option.

  • You will need to sign the payment plan change documents sent to you and return them to the servicing department before the deadline listed on the form (which is typically a few days before the end of the month) in order for the new payment plan to go into effect the following month.

  • There are times closer to the end of the month when a payment plan change request cannot be completed due to time constraints. In those instances, we will send the payment plan change documents to you by approximately the 5th business day of the following month with a deadline to return and information regarding the effective date of the new payment plan option.

  • There is a $20 fee associated with a payment plan change. The fee will be added to your loan balance and the transaction will appear on your monthly statement.

Your reverse mortgage will have to be repaid when the last surviving borrower on the loan passes away, moves from the home permanently, or does not occupy the home for longer than 12 months.

Depending on the type of reverse mortgage you received, you (or your heirs) may be eligible for time extensions ranging from six months up to one year. These potential time extensions are only to be used to provide time to satisfy the balance of the reverse mortgage.

If the home is sold for more than the balance of the reverse mortgage, the remaining proceeds from the sale are yours (or your estate’s) to keep.

View the options for satisfying the loan balance and the information needed to request an extension here.

It is important to note that there may also be certain protections available for eligible “non-borrowing spouses” in the event the borrower passes away. There will be several pieces of documentation and information that will need to be provided by the non-borrowing spouse after the borrower has passed away to determine their potential eligibility for these protections. Please ensure that the non-borrowing spouse has our contact information to reach out to us should that event occur in the future.

The purpose of the Mortgage Insurance Premium is to guarantee the borrower that if their servicer is no longer in a position to manage the loan, the U.S. Department of Housing and Urban Development will step in to ensure continued access to loan funds and other servicing activity, such as monthly statements, for example. It also guarantees you never owe more than the current fair market value of your property, should the loan require repayment.

Most reverse mortgages are non-recourse loans. As a general statement, if the loan balance becomes due and payable and the borrower or their heirs do not wish to keep the home, the non-recourse feature of the Home Equity Conversion Mortgage provides protection to you and your heirs. Generally, if the balance of your loan at the time of maturity exceeds the current fair market value of your property, neither you, nor your estate or heirs, will be responsible for the difference between the loan amount due and the proceeds the lender or loan investor is able to generate from the liquidation or sale of the property.

Every year, Champion Mortgage reports Form 1098, the Mortgage Interest Statement, to the Internal Revenue Service and provides this statement to you. This statement indicates the amount of your payments that was applied to the interest on your Reverse Mortgage loan. You should consult a tax professional to determine if you can deduct this interest when filing your return.

Champion Mortgage will issue a 1099-C if a Deed in Lieu of Foreclosure or a Foreclosure of a property occurs. The Internal Revenue Service considers the amount of the cancelled debt to be income and this income should be reported when filing your return unless you meet certain exemption criteria. A 1099-C will also be issued when the property is sold and the sale of the home does not cover the balance of the loan (a Short Sale). In the case of a Short Sale, the borrower or the heirs to the property are not responsible for paying the difference of the amount of the sale and the loan balance; however, as with a Deed in Lieu of Foreclosure or Foreclosure, the Internal Revenue Service considers the amount of the cancelled debt as income. A reverse mortgage is considered a non-recourse mortgage with regard to the potential income being forgiven. You should consult a tax professional when filing your return to determine if you meet exemption criteria.

You will receive a monthly statement of the activity on your reverse mortgage. These statements are mailed out by the 5th business day of each month. Because of mailing time, it can take up to 7 days after that for you to receive your statement in the mail.

You will also receive an annual statement in January of each year detailing all of the activity on your reverse mortgage over the previous year.

You can view and/or download both your monthly statement and your annual statement by registering to view your account details online or, if you have already registered, logging into your Champion Mortgage account at My Champion.

  • What is Growth of Principal Limit?
    • After the first month of your HECM loan, the current principal limit increases each month thereafter at a rate equal to one-twelfth of the mortgage interest rate in effect at that time, plus one-twelfth of monthly mortgage insurance premium rate. This growth should be considered a further extension of credit rather than an accrual of interest.

  • What is the Monthly Service Fee?
    • The Monthly Service Fee is a monthly fee charged by the loan servicer for administering a loan after closing, such as disbursing loan funds, maintaining loan records and sending statements; the amount of the monthly fee is determined during the loan origination process.

  • What is the Service Fee Set-Aside?
    • The Service Fee Set-Aside are funds that are set aside from the principal limit at closing, but are only added to the loan balance as they are incurred on a monthly basis. The amount is determined during the origination process and represents the amount of money that will be required to pay all of the monthly servicing fees until the borrower reaches age 100.
    • Champion deducts this monthly fee from the Servicing Fee Set-Aside amount and adds it to the loan balance each month during life of the loan.
    • If the loan is paid off early, the remaining amount in the Servicing Fee Set-Aside does not have to be repaid. Only the amount added to the balance throughout the life of the loan has to be repaid.

  • What is the Repair Set Aside?
    • The “Repair Set-Aside” is the portion of your available funds which are to be used solely for the completion of your required repairs. This “set aside” is not part of your loan balance until which time the funds are actually disbursed.

For more information, please read the guide “How to Read My Reverse Mortgage Statement” here.

You retain full ownership of the property. Your reverse mortgage is simply a loan taken out against the equity in your home.

As long as you occupy the home as your principal residence, keep your property taxes and insurance current, and comply with all of the terms of your reverse mortgage, you will be in no danger of losing your home because of the reverse mortgage.

Champion Mortgage representatives are available Monday through Thursday from 7 am to 7 pm CST and 7 am to 5 pm CST on Friday. You can reach us by calling our toll-free number: (855) 683-3095.

We can also be reached by fax at (866) 621-1036.

If you would prefer to write to us for anything related to your reverse mortgage, please mail it to the following address:

Reverse Mortgage Servicing Department

P.O. Box 619093
Dallas, TX 75261-9093

Qualified written requests:

Under the Real Estate Settlement Procedures Act, a qualified written request is a written correspondence, other than notice on your payment coupon or other payment medium supplied by us, regarding the servicing of your loan which includes your name, account number, and your reasons for the request. Any qualified written request you wish to submit must be sent to:

Champion Mortgage
P.O. Box 612877
Dallas, TX 75261

View the fees that may be associated with your reverse mortgage.

Qualified written requests:

Under the Real Estate Settlement Procedures Act, a qualified written request is a written correspondence, other than notice on your payment coupon or other payment medium supplied by us, regarding the servicing of your loan which includes your name, account number, and your reasons for the request. Any qualified written request you wish to submit must be sent to:

room Champion Mortgage, P.O. Box 612877, Dallas, TX 75261

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Friday 7 a.m to 5 p.m (CST)



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