If the proceeds are used for investment purposes, the interest expense may be used to offset the income generated from the proceeds. It is important to the Canadian Home Income Plan that its clients and families have a thorough understanding of the CHIP reverse mortgage and how it works. The client's comfort and security prior to entering the program is just one of CHIP's customer service standards. Part of the application process is the requirement that clients have a complete review of all legal documentation with a lawyer prior to proceeding with the program. The lawyer must explain all aspects of the program and declare that this has been completed and that the client is fully aware of the program and its operation.
Legal documentation is forwarded to the client's lawyer for review.
After the client is satisfied with the review, the documents are returned to CHIP and the final steps in the application process are completed, which includes registering the reverse mortgage on the title of the client's home, title insurance, and preparing funds for the client. CHIP has an average turnaround time for processing and legal work of approximately 21 days. 2001 National Reverse Mortgage Lenders Association. All rights reserved.