Author Archives

Exploring Reverse Mortgage Disadvantages

December 19, 2011     no comments

I had a long conversation with a potential borrower yesterday. He said that he had spoken with a couple of loan originators and had a few concerns. One of the originators told him that there were no reverse mortgage disadvantages and the other worked for the largest reverse mortgage company in the United States and told him that she did...
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Reverse Mortgages: A Non-Recourse Loan

December 18, 2011     no comments

One of the things that we always explain to senior borrowers when they ask about reverse mortgages is that they are non-recourse loans. The next question is always, "What is a non-recourse loan?" This is a very important feature of the reverse mortgage and I want to take a moment to explain just what non-recourse means and how that affects...
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2011 Reverse Mortgage Pros and Cons

December 16, 2011     no comments

2011 is fast approaching and people are still asking about the reverse mortgage pros and cons. We have seen some changes over the past year and it's time to update some of the reverse mortgage pros and cons that were reported in our last article. HUD has made some changes that many feared and some have helped, some have made...
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Reverse Mortgage Counseling Roundup for 2012

December 9, 2011     no comments

Reverse mortgage counseling is a mandatory step in the process of getting a government-insured home equity conversion mortgage (HECM) loan through the Federal Housing Administration. All reverse mortgage borrowers—regardless of loan amount, home value or financial savvy—must go through this counseling, which is offered over the phone or in person through government-approved counseling agencies. In addition to borrowers, non-borrowing spouses...
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FHA Confirms 2012 Reverse Mortgage Limits

December 1, 2011     1 comment

2013 Update: Reverse Mortgage $625,500 Limits have been extended! FHA Confirms 2012 Reverse Mortgage Limits The Federal Housing Administration announced last week through its listserv that the current reverse mortgage loan limit of $625,500 will remain in effect for 2012 and that a mortgagee letter stating this policy is pending. “Lenders are reminded that the maximum claim amount for HECMs...
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Can You Defer Property Taxes if You Have a Reverse Mortgage? It Depends!

November 21, 2011     4 comments

Oregon reverse mortgage borrowers made headlines recently when they were suddenly cut from a tax deferral program many had been enrolled in for several years or more. Previously, reverse mortgage borrowers in Oregon were eligible for the state’s senior property tax deferral program—a program that allows people over the age of 65 to defer their property taxes over time while...
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Reverse Mortgage Income Requirements: Will You Qualify?

November 15, 2011     2 comments

UPDATE: Financial Assessment has been postponed until 3rd quarter 2012 Borrowers interested in taking out a Home Equity Conversion Mortgage (HECM), or government-insured reverse mortgage, should be aware that they may face a new financial assessment that will look at their monthly income & cash flow to determine whether or not they are eligible for a loan. Lenders have...
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Reverse Mortgage Credit Requirements: Will You Qualify?

November 15, 2011     2 comments

UPDATE: Financial Assessment has been postponed until 3rd quarter 2012 For those looking into getting a Reverse Mortgage, it’s important to be aware of certain changes that lenders may be making in the form of credit requirements for borrowers that take place during the loan underwriting process. Reverse mortgage lenders are beginning to conduct these financial assessments as a way...
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Reverse Mortgage Saver Program Gains Appeal

November 8, 2011     2 comments

$0 FEE Reverse Mortgages: All-Time Low Rates & No Closing Cost Options - Request Quote Today! Until last year, there was pretty much one reverse mortgage in town. Whether fixed rate or adjustable rate, almost all reverse mortgages fell under the Home Equity Conversion Mortgage (HECM or “Heck-um”) “Standard” program, insured by the Federal Housing Administration (FHA). Then along came...
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A New Landscape for Reverse Mortgages in 2012

November 7, 2011     no comments

The vast majority of reverse mortgages fall under the Home Equity Conversion Mortgage Program and are insured by the Federal Housing Administration. Under that program, the U.S. Department of Housing and Urban Development can make changes that have the potential to impact lenders and borrowers. Market shifts and other factors can also lead to program and loan changes. Here’s what...
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