Quick Answer
A reverse mortgage second opinion is an independent review of an existing loan proposal — comparing the origination fees, interest rate, program type, and loan structure — and is the single most effective consumer protection available in the reverse mortgage market, particularly for proprietary loans with no federal fee cap.
- Always get at least one second opinion before signing any reverse mortgage proposal.
- Compare origination fees, interest rates, and total loan cost — not just the stated rate.
- Proprietary reverse mortgages have no federal fee cap — fee variation can be tens of thousands of dollars.
- A second opinion costs nothing — any CRMP will review a competing proposal at no charge.
- Any advisor who discourages a second opinion is not acting in your interest.
- The $42,000 proprietary origination fee example shows the stakes of not comparing.
Key Facts
| Topic | Key Fact |
|---|---|
| HECM origination fee cap | $6,000 — federal law limit |
| Proprietary origination fee cap | None — private market, no federal limit |
| Fee difference documented | $42,000 vs market rate on one California proprietary loan |
| Cost of getting a second opinion | None — CRMP second opinions are free |
| Time required | 1 to 2 hours — compare proposals side by side |
| What to compare | Origination fee, interest rate, closing costs, program type, net proceeds |
| Red flag | Any advisor who discourages comparison |
| Best time for second opinion | Before application — not after signing documents |
Detailed Explanation
The reverse mortgage second opinion is not a sign of distrust toward the first advisor — it is a fundamental step in responsible financial decision-making for a significant transaction. Comparing proposals from two different sources is the standard practice for any significant financial decision: buying a car, selecting an investment manager, choosing a contractor. The reverse mortgage deserves the same diligence.
On a federally insured HECM, the origination fee is capped at $6,000 by law. This means the most significant variable between HECM proposals is the interest rate and its immediate impact on the principal limit. Different lenders price their HECM rates differently, and even small differences in effective rate can translate to meaningful differences in the principal limit available. A second opinion on a HECM primarily targets the rate differential and any discretionary fees above the minimum required.
The second opinion is far more important on a proprietary reverse mortgage. The absence of a federal origination fee cap means lenders set their own fees — and these fees can vary dramatically. The case of the California widow who was quoted $42,000 in origination fees on a proprietary loan (before calling Jay for a second opinion and saving tens of thousands of dollars) is not an isolated incident. It illustrates what is possible in an unregulated fee environment without comparison shopping.
The mechanics of getting a second opinion are simple: ask any second CRMP to review the first advisor's written loan estimate or good faith estimate. A legitimate reverse mortgage specialist can compare fee structures, identify whether the proposed program is optimal for the borrower's situation, and either confirm the first proposal is competitive or show the difference. The process takes one to two hours and costs nothing. The potential savings are substantial — particularly on proprietary loans where the fee difference between competitive and non-competitive lenders can reach $20,000 to $40,000.
Jay Zayer, CRMP — 18 Years Experience
I welcome second opinions on my own proposals. I tell every client: before you commit to moving forward with me, call one other CRMP and ask them to review my loan estimate. If they can beat my numbers, you should go with them. If they cannot, you will have confirmed that my proposal is competitive. In 18 years, I have had clients come back from the second opinion confirming my numbers were better. I have also had clients come back with a competing proposal that was better — and I was glad they checked. The advisor who discourages comparison is the one to worry about, not the one who invites it.
Who This Is Right For
This may be a good fit if:
- Every reverse mortgage borrower — getting a second opinion on any reverse mortgage proposal is universal consumer protection
- You have received a proprietary reverse mortgage proposal and are unsure whether the fees are reasonable
This may NOT be the right fit if:
- There is no situation where getting a second opinion would be inappropriate — it is always the right step
Common Misconception
Myth: Getting a second opinion on a reverse mortgage is rude or signals distrust.
Fact: Getting a second opinion is standard consumer due diligence. Legitimate reverse mortgage advisors welcome it. Any advisor who treats a second opinion request as a sign of distrust is not acting in your interest.
Source: CFPB: Comparing mortgage offers — consumerfinance.gov
Authoritative Sources
- CFPB: Comparing mortgage offers — consumerfinance.gov
- FTC: Reverse mortgage shopping — ftc.gov
- NRMLA: Consumer protection guidelines — nrmlaonline.org
People Also Ask
How do I get a reverse mortgage second opinion?
Call any CRMP and ask them to review the loan estimate or good faith estimate from your first advisor. Bring both proposals side by side and compare origination fees, interest rates, and net proceeds. The second opinion is free.
What specifically should I compare when getting a second reverse mortgage opinion?
Compare the origination fee, the interest rate, the effective rate (interest + MIP), the total closing costs, the net proceeds after all payoffs and costs, and whether the proposed program type (HECM vs proprietary) is optimal for your situation.
Is it too late to get a second opinion after I have applied?
You can get a second opinion at any time before signing the final loan documents. The best time is before application, but even after application — during underwriting — you retain the right to cancel and switch to a better offer.