Quick Answer
Treat any wire or bank-account instructions as unverified until you confirm them using a phone number you obtained independently—not from the email or text that delivered the instructions. Wire fraud is a general real-estate closing risk, not something unique to reverse mortgages; the same slow, call-and-confirm process protects large payoffs and borrower proceeds. Exact closing procedures vary by lender, title/escrow company, state, and transaction type.
- Never rely solely on emailed wiring instructions or last-minute “updated” bank details.
- Call settlement/title using a phone number from their official website, prior paperwork, or an in-person contact—not the number in the suspicious message.
- Confirm the exact recipient/business name and account details before any money moves or before changing where proceeds should be sent.
- Stop and re-verify if instructions change, especially close to funding day.
- If you already sent money and suspect fraud, contact your bank immediately and ask about a wire recall, then report to IC3 (ic3.gov) and consider FTC ReportFraud.ftc.gov.
- Ask your closing professionals what verification process they use—procedures vary and are product-specific.
Key Facts
| Topic | Key Fact |
|---|---|
| Core safety rule | Independently verify instructions by phone or in person before wiring money or changing deposit instructions |
| What not to trust alone | Email/text/voicemail instructions, links, attachments, or phone numbers inside the same message |
| Highest-risk signal | Urgent last-minute changes to wiring or deposit instructions |
| Reverse mortgage context | Closings can involve large lien payoffs and borrower proceeds—same verification habits as other large real-estate wires |
| Not unique to reverse mortgages | Real-estate wire fraud also targets purchase and refinance closings generally (CFPB/FBI consumer guidance) |
| If fraud is suspected after sending | Contact your financial institution immediately; report to FBI IC3 (ic3.gov); consider FTC ReportFraud.ftc.gov |
| Procedures vary | Lender, title/escrow, state, HECM vs proprietary, and refinance vs purchase can change who moves money and how |
Detailed Explanation
How can you protect yourself from wire fraud during a reverse mortgage closing? Slow down and independently verify any instructions that tell you where money should go—or where your proceeds should be deposited—before you act. Consumer guidance from the CFPB and law-enforcement materials on real-estate wire fraud emphasize the same principle: do not follow emailed wiring instructions on their own, and confirm account details with trusted professionals using contact information you obtained separately.
Wire fraud is not unique to reverse mortgages. Criminals often compromise or spoof emails involving real-estate professionals, then send fake wiring instructions that look legitimate—sometimes with urgency or last-minute “account change” language. A reverse mortgage closing can still involve significant dollars (existing-loan payoffs, closing costs, borrower proceeds, or purchase funds in some HECM-for-Purchase situations), so the same careful verification process used for other large mortgage/settlement wires applies. That does not mean reverse mortgages are inherently more susceptible; it means large closings deserve careful habits.
How does wire fraud typically happen at closing? Public consumer guidance describes a pattern in which scammers impersonate a settlement agent, title company, realtor, lender contact, or other trusted party and ask you to wire funds to a fraudulent account—or to accept “updated” instructions. Messages can look familiar, reuse logos, or reference real file details. Email alone is not proof of authenticity. Exact scam tactics vary; treat unexpected payment-instruction changes as a stop-and-verify moment.
What are the biggest warning signs? Sudden changes to wiring or deposit instructions; pressure to act immediately; unfamiliar or slightly altered email domains; requests to ignore prior instructions; links or attachments that demand urgent action; and phone numbers that appear only inside the same suspicious message. Familiar-looking email is not enough. If something feels rushed or different from what your settlement professional previously explained, pause.
How should you verify wiring or deposit instructions? Before closing, identify who will handle settlement/title and ask how payment and disbursement instructions will be communicated. Save a trusted phone number from the company’s official website, closing paperwork you already trust, or an in-person meeting—not from an unexpected email. When instructions arrive, call that independently obtained number, confirm you have the correct file, and verify the recipient/business name and account details. Do not email Social Security numbers, full account passwords, or other sensitive credentials to anyone—including ReverseMortgage.Coach. Ask your bank what confirmation options it offers before sending a wire.
What if wiring instructions change? Do not wire or update deposit destinations based on the change email alone. Re-contact settlement/title (or the appropriate closing professional) using your independently saved number and confirm whether any change is real. Legitimate parties should not be offended by verification. Exact who-to-call can vary by transaction—ask early who owns wire and disbursement instructions for your file.
Reverse-mortgage-specific closing context (general education; procedures vary): On many refinance HECMs, settlement typically pays off existing liens from loan proceeds and then disburses remaining borrower proceeds according to your elections and the Closing Disclosure. You may be asked for banking details so proceeds can be deposited or wired to you. On some purchase reverse mortgages, borrowers may also need to bring funds to closing. In every case, confirm who is authorized to give wiring or deposit instructions for your file, and verify unexpected changes the same way you would for any large real-estate transfer. Do not invent a one-size-fits-all funding script—your lender and title/escrow company control the exact process.
Action framework — before closing: Know the settlement/title company name. Ask how wiring and proceeds disbursement will work. Save independently verified phone numbers. Ask what their verification procedure is if instructions arrive by email. Confirm whether you should expect to send funds, receive funds, or both.
Action framework — when instructions arrive: Stop. Call using your saved number. Confirm recipient name and account details. Watch for urgency language. Prefer confirming by voice or in person before money moves. If your bank offers additional wire-fraud checks for real-estate closings, use them.
Action framework — if something changes or looks suspicious: Do not send money and do not change deposit instructions based on the message alone. Contact the appropriate closing professional with independently verified contact information. Notify your loan originator so the team is aware. Keep copies of the suspicious communication.
Action framework — if money was already sent and you suspect fraud: Contact your bank or credit union immediately and ask about a recall or other recovery steps (timing matters; recovery is not guaranteed). Report to the FBI’s Internet Crime Complaint Center at ic3.gov. Consider also reporting at ReportFraud.ftc.gov. Inform your title/escrow company and lender contact so they can take appropriate steps on their side. This is general consumer guidance—not legal advice—and outcomes vary.
Questions to ask before closing: Who is my settlement/title contact, and what is the official phone number on the company’s website? How will I receive wiring or deposit instructions? What should I do if I get a last-minute change email? Will I be sending funds, receiving proceeds, or both? How will existing mortgage payoffs be handled? Who confirms that proceeds arrived correctly after funding? Exact answers depend on your professionals and loan type.
Jay Zayer, CRMP — 18 Years Experience
When a closing involves large numbers, I want borrowers to treat money movement like a checklist, not a race. Before funding week, know your settlement company’s verified phone number and how proceeds or any cash-to-close will be handled. If an email suddenly changes wiring or deposit instructions, the professional response is to stop and call—using a number you already saved—not to hit send because someone sounds urgent. That habit protects reverse mortgage closings the same way it protects other real-estate wires. Procedures still vary by lender and title company, so ask your closing team to walk you through their verification process in plain English before closing day.
Who This Is Right For
This may be a good fit if:
- You are approaching reverse mortgage closing or funding and want a practical wire-fraud checklist
- You received unexpected wiring or deposit-instruction emails and need a clear verification process
- You want reverse-mortgage-specific closing context without fearmongering
- Family members helping a senior through closing want shared safety steps
This may NOT be the right fit if:
- You need a general “is a reverse mortgage a scam?” product overview—see that Ask Jay page instead
- You need scam red flags about fee gouging, deed theft, or fake government affiliation—see reverse mortgage scams content
- You want legal advice about liability after a loss—consult an attorney and your financial institution
Common Misconception
Myth: If the email looks like it came from my title company or lender, the wiring instructions must be real.
Fact: CFPB consumer guidance on mortgage closing scams warns that scammers can spoof trusted parties and push fake or last-minute wiring instructions. Independently verify account details using a phone number you obtained separately.
Source: CFPB: Mortgage Closing Scams — How to protect yourself and your closing funds
Authoritative Sources
- CFPB: Mortgage Closing Scams — How to protect yourself and your closing funds — consumerfinance.gov
- FBI: Business Email Compromise and Real Estate Wire Fraud congressional report materials — fbi.gov
- FBI Internet Crime Complaint Center (IC3) — ic3.gov
- FTC: What to Know Before You Wire Money / ReportFraud.ftc.gov — consumer.ftc.gov
- NAR consumer guidance on protecting against real estate wire fraud — nar.realtor
People Also Ask
What are the reverse mortgage scams I should watch out for?
Product-related scams (fee abuse, deed theft, fake government affiliation) differ from closing wire fraud. Wire fraud is about fake payment instructions during money movement.
What happens at the reverse mortgage closing?
You sign documents with settlement/title; funding and disbursement follow program and transaction rules, often after rescission on refinances. Ask how wires and proceeds will be handled.
Is a reverse mortgage a scam?
A HECM is a regulated loan product, not a scam by itself. Separately protect yourself from criminal wire-fraud attempts that can target many real-estate closings.
What are the red flags of a bad reverse mortgage lender?
Pressure, fee irregularities, and discouraging comparisons are lender red flags. Wire-fraud protection is still needed even with a reputable lender because scammers may impersonate others.
What is the reverse mortgage right of rescission?
On many refinance reverse mortgages, a federal rescission period delays funding after signing. Use the pre-funding window to confirm disbursement instructions carefully.