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What is Loan Service Set Aside?

April 26, 2017aside loan service

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What is Loan Service Set Aside?

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Every month a small Loan Servicing Fee is added to the outstanding loan balance of a reverse mortgage. This amount compensates the Loan Servicer. Loan Service Set Aside represents the amount that these Loan Servicing Fees may add up to when the youngest homeowner reaches life expectancy. Loan Service Set Aside is not a closing cost, rather it is a reduction to the amount of cash available to the homeowners.