The Reverse Mortgage Match Game

One of the most upsetting and disturbing challenges for reverse mortgage borrowers and their lenders is when identification of a borrower does not match the signature line on the loan documents.

Recently a borrower was sitting at the closing table preparing to sign their loan documents. When the notary looked at the identification, the middle name on the ID did not match the signature line. In fact they were two different names. Apparently the woman had changed her middle name to her previous married name over 15 years ago when she bought the property. Many years later she put her given middle name on her ID.

This difference in names caused a challenge at the closing table and ultimately a delay in the funding of the loan. The law dictates that a notary must see an ID that matches exactly what is on the signature line and since the lenders require that the name is signed exactly the same as what is on the signature line the borrower could not be notarized.

To avoid delays and upset borrowers it is best to get a copy of the ID they intend to utilize during the closing. Give a copy of the ID to the escrow officer and follow up to make sure that the ID and the title on the property match exactly.