Mortgage Professionals
Underwriting Success in Reverse Mortgages with Bloom Finance
1. How to Submit a File: A Seamless Process
Submitting a reverse mortgage application with Cashin Mortgages is straightforward. You can choose one of the following methods:
- Filogix Bloom (Private Section)
- Velocity
- Finmo
- Alternatively, click the referral button at the bottom of this email.
It's as simple as that! We've designed our submission process to be accessible and user-friendly, ensuring a smooth start to your reverse mortgage journey.
2. Required Documents:
In most cases, upfront documents are not required. However, for certain scenarios, it's beneficial to provide the following documents with your submission to your Account Executive:
- FICO less than 630: Income supporting documents such as OAS/CPP payments, along with 3-month bank statements.
- RRIF/Investment/Savings income: Recent T4RIF and bank statements showing current balances.
- Full-time, part-time, or BFS employment: 2 years T4 or NOA + paystub + LOE (for FT), 2 years T1 General and NOA.
- BFS employment: 2 years accountant-prepared financial statements.
- Rental income qualification: Recent NOA + General statement of Real Estate Rentals + Current Lease Agreement.
Understanding when and why certain documents are required ensures a smoother submission process.
3. Why Income is Essential:
While reverse mortgages do not require regular payments, it's crucial to confirm that the client can manage their overall debt load. The Debt Serve Ratio (DSR) must be less than 40%. This ratio considers current debt, such as credit cards, LOC, car payments, property tax, home insurance, and other expenses not covered by the reverse mortgage proceeds.
This ensures a comprehensive assessment of the client's financial capacity, contributing to a responsible lending approach.
4. Valid Income Sources: Diverse Options for Client Qualification
Cashin Mortgages supports various income sources, including but not limited to:
- Pension Income (CPP/OAS)
- RRIF income
- Investment/Savings
- Full-time, Part-time, and BFS Employment
- Alimony
- Disability (ODSP/Insurance/CPP Disability)
- Rental Income (subject/non-subject properties)
Understanding the array of supported income sources empowers you to guide your clients effectively through the qualification process.
In conclusion, we hope this guide provides clarity on the key aspects of submitting a reverse mortgage application with Cashin Mortgages. Feel free to reach out for any further assistance or clarification – we're here to support you every step of the way.
