HECM Reverse Mortgage Closings in New York

Ianniello Anderson, P.C. is one of the few New York law firms with deep, day-to-day experience closing Home Equity Conversion Mortgages. We have handled HECM closings across New York for national lenders and servicers for years — through program updates, documentation changes, and every borrower scenario the FHA framework allows. With four Capital Region offices and a real estate practice that has anchored this firm since 1971, we bring more than 50 years of institutional experience to a transaction type that rewards experience. Lenders rely on us for consistent, HUD-ready closings statewide. Borrowers age 62 and older rely on us for clear answers at a closing table that can otherwise feel unfamiliar. Call **(518) 371-8888** to start a conversation.

What Is a HECM?

A HECM — Home Equity Conversion Mortgage — is a federally-insured reverse mortgage available to homeowners age 62 and older. It is the only reverse mortgage product backed by the federal government, insured through HUD and administered by the FHA.

The structure is straightforward: a HECM lets a qualifying homeowner convert a portion of their home equity into cash, a line of credit, monthly payments, or a combination of those options — without giving up ownership of the home. Borrowers continue to own and live in the property. There are no monthly mortgage payments to the lender; instead, the loan balance grows over time and is repaid when the home is sold, the last borrower no longer uses it as a primary residence, or the borrower passes away.

HECMs are commonly used to supplement retirement income, eliminate an existing mortgage payment, fund home modifications, or build a financial cushion. They are also used for HECM-for-purchase transactions, where a buyer 62 or older purchases a new primary residence using HECM proceeds.

HECM Closings — Why Experience Matters

HECM closings are not standard residential closings with a different name. They are governed by their own body of federal rules, and the documentation reflects that. A typical file includes the FHA case number assignment, the HUD-required counseling certificate, principal limit factor calculations tied to the youngest borrower’s age, mortgage insurance premium disclosures, the second mortgage and second note running to HUD, and a stack of consumer disclosures that exist nowhere else in residential lending.

Non-borrowing spouse protections add another layer. The rules around eligible and ineligible non-borrowing spouses have evolved over time, and getting the documentation right at closing is what protects that spouse from displacement years later. Occupancy requirements, repair set-asides, life expectancy set-asides, and tax-and-insurance disclosures all carry their own compliance obligations.

The cost of a closing handled by an inexperienced firm shows up later — failed HUD audits, insurance claim disputes, post-closing corrections, and in the worst cases, foreclosure actions against surviving spouses that should never have been possible. Our team handles these closings often enough to spot the issues before they become problems and to deliver the file in the condition lenders and servicers need it.

For Lenders and Servicers

We work with national reverse mortgage lenders, servicers, and originators who need a New York settlement attorney with real HECM experience. Through our title operation and our network of national title agents and underwriters, we coordinate closings statewide and handle the full range of title-related products our institutional clients need.

What we deliver:

• HUD-compliant closing packages — documentation prepared to your investor and servicer specifications, ready for FHA insurance endorsement.
• Statewide New York coverage — closings across Upstate, Downstate, and everything in between, coordinated from our Clifton Park headquarters and three additional Capital Region offices.
• Efficient turnaround — fast scheduling, prompt funding coordination, and responsive communication on every file.
• HECM-for-purchase capability — full handling including title curative work and seller-side coordination.
• Post-closing support — assignment recordings, satisfaction filings, and follow-up documentation handled with the same care as the original closing.

If you are evaluating attorney partners for your New York pipeline, we are happy to walk through our HECM closing capabilities and the institutional relationships we already maintain. See our [title insurance](/real-estate/title-insurance/) page for related work with mortgage originators and servicers nationwide.

For Borrowers (Homeowners 62 and Older)

If you are considering a HECM or you have one in process with a lender, here is what to expect on the legal side.

Before closing, you will complete a required HUD-approved counseling session with an independent counselor. The certificate from that session has to be in the file before closing can be scheduled — it confirms you understand how the product works and what your obligations are. That counseling is a protection, not a formality.

At closing, you will sign two notes and two mortgages — one set to the lender, one set to HUD. That structure is what gives the HECM its federal insurance backing. You will also receive a federal right of rescission on most HECMs, which gives you three business days after closing to cancel the transaction if you change your mind.

Your responsibilities after closing are clear and limited: keep the property as your primary residence, keep up with property taxes and homeowners insurance, and maintain the home in reasonable condition. As long as those conditions are met, the loan does not come due.

We close HECMs the same way we close every real estate transaction at this firm — with personalized attention, straight answers, and a team that treats your closing table like it matters.

HECM Issues That Need Legal Help

Some HECM situations go beyond a standard closing and call for real legal advice:

• Non-borrowing spouse protection — if a borrowing spouse has passed and the surviving spouse faces foreclosure or due-and-payable notices, federal rules may protect them. We coordinate with the servicer on deferral and assignment options. See our foreclosure page for HECM-related default and foreclosure defense.
• Occupancy challenges — annual occupancy certifications and disputes over primary residence status.
• Tax and insurance default — when a borrower has fallen behind on property taxes or homeowners insurance and the loan is in default, repayment plans and at-risk extensions may be available.
• Estate handling at the borrower’s passing — heirs have specific rights and timeframes to satisfy the loan, sell the home, or deed it to the lender. Coordinating with our estate planning team in Saratoga County keeps the process orderly.
• HECM-for-purchase transactions — full closing services for buyers 62 and older.

Two Paths to a Conversation

**Lenders and servicers** — if you are evaluating closing attorneys for your New York pipeline, we are happy to share our HECM closing capabilities, turnaround standards, and institutional references. Reach out to our team directly or through our [contact us](/contact-us/) page and we will get the right partner on the line.

**Homeowners 62 and older** — if you are considering a HECM, going through one now, or dealing with an issue on an existing one, start with a conversation. We will give you straight answers about where you stand and what comes next.

Call **(518) 371-8888** to speak with our team, or visit our [real estate practice](/real-estate/) page for the full range of work we handle. Meet our [attorneys](/our-attorneys/) here.