Compu-Link HECM reverse mortgages:
What is Compu-Link and How Does It Relate to Reverse Mortgages?
If you have a reverse mortgage, you may have heard of Compu-Link Corporation, also known as Celink. But what is Compu-Link and how does it relate to your reverse mortgage? In this article, we will explain what Compu-Link is, what it does, and how it affects reverse mortgage borrowers.
What is Compu-Link?
Compu-Link is a company that specializes in servicing reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs). Servicing a reverse mortgage means performing tasks such as collecting payments, sending statements, paying taxes and insurance, and handling any issues or questions that arise during the life of the loan.
Compu-Link is not a lender or an originator of reverse mortgages. It does not make loans or approve borrowers. It only services loans that have already been made by other lenders.
Compu-Link is one of the largest reverse mortgage servicers in the country. It services over 200,000 reverse mortgages with a total balance of over $40 billion. It has been in business since 1979 and is headquartered in Lansing, Michigan. It also has an office in Tulsa, Oklahoma.
How Does Compu-Link Relate to Reverse Mortgages?
Compu-Link services reverse mortgages that are insured by the Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD). These are the most common type of reverse mortgages and are known as HECMs.
When you get a HECM loan, you pay an upfront and an annual mortgage insurance premium to the FHA. This insurance protects you and the lender in case the loan balance exceeds the value of your home when you sell it or pass away. It also guarantees that you will receive your payments as long as you live in your home and meet the loan obligations.
The FHA sets the rules and regulations for HECMs, such as the interest rates, fees, loan limits, and eligibility requirements. The FHA also monitors and oversees the performance of HECM lenders and servicers.
If your HECM lender goes out of business or fails to meet its obligations, the FHA can assign your loan to another lender or servicer. This is where Compu-Link comes in.
Compu-Link is the contract subservicer for HUD for assigned HECM loans. This means that Compu-Link takes over the servicing of HECM loans that have been transferred from other lenders or servicers to HUD. This can happen for various reasons, such as:
• Your loan balance reaches 98% of the maximum claim amount (the amount that the FHA will pay the lender if the loan balance exceeds the home value).
• Your lender or servicer goes out of business or fails to comply with HUD’s standards.
• Your lender or servicer voluntarily assigns your loan to HUD.
When your loan is assigned to HUD, Compu-Link becomes your new servicer. You will receive a notice from Compu-Link informing you of this change and providing you with their contact information. You will also receive a notice from HUD confirming the assignment.
Compu-Link will continue to service your loan according to the terms and conditions of your original loan agreement and HUD’s guidelines. You will still receive your payments as usual and you will still be responsible for paying your property taxes, homeowners insurance, and maintenance costs. You will also still be able to access any remaining funds in your line of credit or tenure payments.
What Should You Do If Your Loan Is Serviced by Compu-Link?
If your reverse mortgage is serviced by Compu-Link, you should:
• Keep track of your loan statements and correspondence from Compu-Link.
• Contact Compu-Link if you have any questions or issues regarding your loan.
• Notify Compu-Link if you change your address, phone number, email address, or bank account information.
• Notify Compu-Link if you plan to sell your home, move out permanently, or pass away.
• Notify Compu-Link if you experience any financial hardship or difficulty paying your property taxes, homeowners insurance, or maintenance costs.
• Cooperate with Compu-Link if they request any information or documentation from you.
You can reach Compu-Link by phone at 1-800-761-0073 or by mail at:
Compu-Link Corporation
P.O. Box 59012
Lansing, MI 48909