What are the roles of the Title & Escrow
Companies in a Reverse Mortgage?

• Title Company
  
  
  1. Prepares a Preliminary report showing all items of public record that refer to the property or owner.
  
  
  2. Reviews and record the loan documents
  
  
  3. Issues title insurance to the new lender of record via a title policy.
  
  
• Escrow Company
  
  
  1. Contacts the title company to request the preliminary title report
  
  
  2. Reviews the title report and informs the lender of any possible situations that may delay closing due to that report.
  
  
  3. Orders the payoff statements or subordinations on all liens and loans.
  
  
  4. Prepares escrow instructions to accompany the loan documents to the signing.
  
  
  5. Arranges a notary to meet with the borrower and loan officer for document signing.
  
  
  6. Orders evidence of fire insurance with the new lender’s information.
  7. Prepares funding package for the lender and sends original recording documents to the title company.
  
  
  8. Once the lender’s money is received via a wire transfer, the documents are released for recording with the title company.
  
  
  9. After the title company has confirmed that the documents are recorded, the funds are released per the escrow instructions.
  
  

Escrow is a neutral third party who follow mutual written instructions of the principals