Legal Information

Legal

Legal & Licensing Information

Reverse mortgage loan terms include occupying the home as your primary residence,

maintaining the home, paying property taxes and homeowners insurance. Although these costs

may be substantial, Ennkar does not establish an escrow account for these payments. However,

a set-aside account can be set up for taxes and insurance, and in some cases may be required.

Not all interest on a reverse mortgage is tax-deductible and to the extent that it is, such

deduction is not available until the loan is partially or fully repaid.

Ennkar charges an origination fee, mortgage insurance premium (where required by HUD),

closing costs and servicing fees, often rolled into the balance of the loan. Ennkar charges

interest on the balance, which grows over time. When the last borrower or eligible non-

borrowing spouse dies, sells the home, permanently moves out, or fails to comply with the loan

terms, the loan becomes due and payable (and the property may become subject to

foreclosure). When this happens, some or all of the equity in the property no longer belongs to

the borrowers, who may need to sell the home or otherwise repay the loan balance.

Ennkar Home Equity Conversion Mortgage (HECM) Disclosure

NMLS# 976231 (www.nmlsconsumeraccess.org). Ennkar, Inc is headquartered at 1036 W Taft

Ave, Suite 200, Orange CA, 92865. Ennkar conducts business in the following states:

Ennkar is an equal housing lender. These materials are not from HUD or FHA and were not

approved by HUD or a government agency.

A reverse mortgage can increase the principal mortgage loan amount and decreases home

equity (it can be a negative amortization loan if the homeowner does not make payments that

equal or exceed the interest accumulated for that month).

CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED

MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND

SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE

LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND

INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT

WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.

THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL

OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED

MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION

FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED

BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT

THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT

WWW.SML.TEXAS.GOV.

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