Quick Answer
After a reverse mortgage closes and funds, the loan is transferred to a servicer who manages all ongoing administration — sending annual occupancy certifications, processing line of credit draws, disbursing tenure payments, managing tax and insurance escrow if a LESA was established, and monitoring ongoing obligation compliance.
- The loan is transferred from the originating lender to the loan servicer.
- The servicer manages all ongoing administration for the life of the loan.
- Annual occupancy certification forms are sent and must be returned promptly.
- Line of credit draws are requested from the servicer by phone, online, or mail.
- LESA accounts (if established) are managed by the servicer — taxes and insurance paid automatically.
- Property taxes and homeowner's insurance remain the borrower's ongoing obligations.
Key Facts
| Topic | Key Fact |
|---|---|
| Servicer transfer | May occur shortly after closing — loan may be sold to a different servicer |
| Servicer contact | Primary point of contact for all loan matters after closing |
| Annual certification | Must be returned within 30 days — failure triggers servicer follow-up |
| LOC draw request | By phone, online portal, or mail — typically processed in 3 to 5 business days |
| LESA payments | Servicer pays directly — borrower notified but does not write checks |
| Statement | Monthly or annual statement showing loan balance and accrued interest |
| Critical contact | Keep servicer contact information updated — especially if address changes |
| Trusted contact | Register a trusted contact with the servicer at closing |
Detailed Explanation
Loan servicing for a HECM is often separated from the originating lender — meaning the company you worked with during the application process may not be the company that manages the loan going forward. The servicer is the company that issues all communications, processes draws, and manages the loan account. The servicer contact information is provided at closing and should be kept in an accessible location.
Annual occupancy certification is one of the most important ongoing obligations after closing. The servicer sends a form — typically annually but sometimes more frequently — requiring the borrower to certify that they continue to occupy the home as their primary residence. This form must be returned within 30 days of receipt. Failure to return it triggers escalating follow-up from the servicer, and extended non-response can trigger a due-and-payable inquiry. This certification is completely routine for compliant borrowers — sign, return, and maintain the relationship.
Line of credit draws after closing are requested from the servicer — not from the originating lender. Most servicers offer multiple request methods: a phone-based draw request line, an online portal, or a written request by mail. Draws are typically processed within 3 to 5 business days and disbursed by check or ACH transfer to the borrower's designated bank account. Jay recommends setting up the electronic payment method at closing so draws can be requested efficiently when needed.
For borrowers with LESA accounts, the servicer manages all tax and insurance payments automatically. Property tax bills are sent to the servicer's address (established at closing), and the servicer pays them on time from the LESA account. Insurance premiums are paid at renewal. Borrowers with LESA accounts should update the servicer immediately if insurance carrier, premium, or coverage changes — because the LESA payment process requires accurate billing information.
Jay Zayer, CRMP — 18 Years Experience
The post-closing relationship with clients continues through a simple protocol: I tell every client to call me whenever they have a servicer question before they call the servicer. Not because the servicer is unhelpful — most major HECM servicers are responsive — but because I can translate between what the borrower is experiencing and what the servicer is asking for. The annual occupancy certification call I receive most often is: 'I got this form in the mail and I do not know what to do with it.' Sign it, fill in your current address, and mail it back. That is all it is.
Who This Is Right For
This may be a good fit if:
- Every reverse mortgage borrower who has just closed and wants to understand what to expect going forward
This may NOT be the right fit if:
- There is no situation where understanding what happens after closing would be inappropriate
Common Misconception
Myth: The reverse mortgage company you worked with continues to manage the loan after closing.
Fact: The loan is typically transferred to a servicer who may be different from the originating lender. The servicer is the primary contact for all post-closing administration.
Source: HECM servicing transfer rules; CFPB mortgage servicing guidelines
Authoritative Sources
- CFPB: Reverse mortgage servicing — consumerfinance.gov
- HUD: HECM servicer requirements — hud.gov
- Celink: HECM servicing — reverse.celink.com
People Also Ask
Who is the servicer on my reverse mortgage?
Your servicer's name and contact information are provided in the closing documents. For many California HECMs, the servicer is Celink. Finance of America HECMs are serviced by Finance of America Reverse.
What is the annual occupancy certification?
A form the servicer sends — typically annually — requiring you to confirm you still live in the home as your primary residence. Sign it and return it within 30 days of receipt.
How do I request a draw from my reverse mortgage line of credit?
Contact your servicer by phone, online portal, or mail. Specify the amount you want to draw and your desired disbursement method (check or ACH). Draws are typically processed in 3 to 5 business days.