A trusted contact for a reverse mortgage is a person the servicer may call about account logistics — occupancy mail, a bounced insurance binder, a statement that was not opened. Jay Zayer, CRMP, is a reverse mortgage specialist at reversemortgage.coach. It is not a coborrower, not a power of attorney, and not Eligible Non-Borrowing Spouse status. I will not invent a HUD form number for it.
A borrower in Queen Creek, Arizona recently — Jorah, 69, occupying the house — listed a daughter so “she can handle everything.” She can receive some calls. She cannot draw the line. See how the servicer works. Stay here for what the designation actually is.
A HECM remains FHA-insured. A trusted contact is not a public co-signer.
What is a trusted contact on a reverse mortgage file?
A name and phone number the servicer keeps so someone answers when Jorah does not. Occupancy under 24 CFR 206.39 is still Jorah’s job. Property charges under 24 CFR 206.205 are still Jorah’s job unless a LESA pays them. Jay confirmed a LESA cannot be added after closing. Listing a daughter does not create a LESA.
Jorah’s leftover cash still lands in a mid-30s to low-50s percent of appraised value, depending on age and expected rate. Run leftover cash as a separate question from who gets the voicemail. Do not interpolate HUD rows.
Counseling still costs $125–$175. The HUD certificate lasts 180 days. Arizona has no Civil Code 1923.2(k) pause. A trusted contact does not attend counseling as a borrower.
Is a trusted contact a coborrower, a POA, or neither?
Neither. A coborrower is on the note, 62 or older under 24 CFR 206.33, occupying. A durable power of attorney is a state-law instrument that may let an agent sign if the channel accepts it. A trusted contact has none of that. Mixing the three is how families are shocked when a draw is refused.
A second geography: a 74-year-old in San Luis Obispo whose California son wanted to be “on the loan as trusted contact” to raise leftover cash. HUD uses the youngest borrower. Adding a younger occupying child as coborrower, if the overlay even allows it, changes the factor. Listing him as trusted contact does not.
Initial MIP is still 2.00% of claim amount (Mortgagee Letter 2017-12). Origination is still capped at $6,000 under 24 CFR 206.31. Annual MIP of 0.50% of outstanding balance still accrues. None of those charges care who is on the call list. Adding a trusted contact after closing is a servicing request, not an origination calendar.
What can the servicer actually tell that person?
Ask the shop in writing. Overlays differ. Some will confirm a statement was mailed. Some will discuss a missing occupancy certification. Many will not discuss a draw or a payoff with a trusted contact who has no POA. I will not invent a federal script. An adjustable HECM still accrues at 1-month CMT plus lender margin.
If Jorah’s heirs later keep the Queen Creek house, 24 CFR 206.125(a)(2)(i) still names the outstanding balance. A trusted-contact daughter is not automatically the estate. See estate notification.
Arizona Queen Creek has no Civil Code 1923.2(k) pause. A trusted contact does not attend counseling as a borrower and does not sit on the note. California San Luis Obispo still has the seven-day origination pause and still cannot raise leftover cash by listing a son as “trusted contact.” HUD uses the youngest borrower. Listing a child on a call sheet does not change the factor. Mortgagee Letter 2025-22 still puts the 2026 cap at $1,249,125. Initial MIP is still 2.00% of claim amount (Mortgagee Letter 2017-12). Origination is still capped at $6,000 under 24 CFR 206.31. Annual MIP of 0.50% of outstanding balance still accrues. None of those charges care who is on the voicemail list.
Adding a trusted contact after closing is a servicing request, not the roughly 30-day origination close I quote on a complete refinance. Expected rate that sized leftover cash already rounded to 0.125% under 24 CFR 206.3; the call list does not change it. A call-list name does not change that Jorah’s ARM still accrues at 1-month CMT plus margin. Ask the shop in writing what it will actually tell that person. Overlays differ. Many will not discuss a draw or a payoff with a trusted contact who has no POA. I will not invent a federal script.
A coborrower is on the note, 62 or older under 24 CFR 206.33, occupying. A durable power of attorney is a state-law instrument. A trusted contact has neither. Mixing the three is how families are shocked when a draw is refused. Occupancy under 24 CFR 206.39 is still Jorah’s job. Property charges under 24 CFR 206.205 are still Jorah’s job unless a LESA pays them. Jay confirmed a LESA cannot be added after closing by listing a daughter.
Name three roles in writing: who is on the note, who holds a POA, and who is only a call list. Jorah’s daughter can be the third without being the first two. Mixing them is how a draw is refused. I will not invent a federal script for what the shop may tell her. Ask that shop. Then occupy, pay charges, and treat leftover cash as a separate question from voicemail.
Who should not list a child as trusted contact and then hide the loan?
This path does not help a household that wanted secrecy and a backup brain. Occupancy is still 24 CFR 206.39. I work with multiple lenders. I will originate when the family knows who is on the note, who has a POA, and who is only a call list. I will turn away a “she’ll figure it out” designation whose only thesis is avoiding a conversation.
If leftover cash after 2.00% of claim amount is decorative, a trusted contact will not rescue the file. Skip the HECM. When the math works, name the three roles in writing before anyone signs.