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Bank of America Reverse Mortgage Review (2024 Update)

March 22, 2022     16 comments

Back in the early 2000s, much of the volume of reverse mortgages in the U.S. was attributed to big banks, including Bank of America. Today, that landscape has changed.  Bank of America began in the reverse mortgage space with a small retail channel, before ramping up its operations through the acquisition of Seattle Mortgage reverse mortgage business in 2007. The company then grew as both a retail and wholesale lender, meaning it offered HECM loans through its retail branches and closed loans that were originated by mortgage brokers across the... Read Full Article

HUD to Require Second Appraisal on Some Reverse Mortgages

March 21, 2022     15 comments

HUD announced today that reverse mortgage lenders could not close loans to be insured under the HECM program unless they have the reverse mortgage appraisal submitted and approved by FHA in advance.  Note that this does not say until HUD does something.  It says that the loans cannot be closed unless HUD does something on the loan before it is approved or closed. This was a huge announcement.  For the first time, HUD is stepping into the origination process of the loans and requiring lenders to submit a loan or... Read Full Article

How to Use a Reverse Mortgage Repair Set-Aside

March 21, 2022     10 comments

Hello ARLO, My mom's house is in Martinsville, IN. During a healthy economy, the house was worth around $200,000. It requires some repair. Who pays for the appraisal to determine the home value? And, are there arrangements where if repairs are required as a condition of the loan approval, can proceeds from the loan be placed towards the repair? In other words, we don't have the funds readily available to make the repair. Are there steps in the process that will tell us if we really should not go forward... Read Full Article

AAG – Nations #1 Reverse Mortgage Lender Sells Loan Portfolio

January 7, 2022     6 comments

For several years I had had borrowers tell me that this was the last-ditch pitch they received from a loan originator from a well-known competitor.  When that company could not match or beat the rate and fee structure, we offered the client their reverse mortgage transaction. They argued with the borrower that they should close a loan with their company because they were not selling the servicing on their loans, even though the loans cost more in fees and, in most instances, the rates were higher. It often meant that... Read Full Article

No Closing Cost Reverse Mortgage Options are BACK!

December 28, 2021     5 comments

Understanding No-Closing Cost Reverse Mortgages: While it's common knowledge that all loans come with certain fees, the concept of a no-closing cost reverse mortgage might seem puzzling. Indeed, reverse mortgages, particularly HUD's Home Equity Conversion Mortgage (HECM), often include substantial initial fees, mainly due to an upfront mortgage insurance premium of 2% of the property value or the maximum lending limit, whichever is less. However, it's also worth noting that a frequently cited concern about reverse mortgages is their perceived high cost of acquisition.  Let's dive into how no-closing cost... Read Full Article

How Lower Interest Rates Drive Larger Reverse Mortgage Amounts

December 1, 2021     no comments

If You’ve Looked at a Reverse Mortgage in the Past, You May Want to Look Again! If you have ever investigated a reverse mortgage or have thought about it, especially in the past 24 months and didn’t think the numbers worked for your needs, it may be time to check again.  The reason we say this is because one of the main factors that determines how much money you will receive in your reverse mortgage is the interest rate. Since HUD changed the Floor Rate on the program,... Read Full Article

The Wait is Over: Reverse Mortgage for Age 55 is Here!

October 27, 2021     12 comments

Reverse mortgage programs are now available starting at age 55 Reverse mortgage opportunities are now opening up for individuals as young as 55, marking a significant shift in the industry.  Historically, proprietary or private reverse mortgages, often referred to as jumbo reverse mortgages, were primarily utilized for high-value properties exceeding HUD's lending limits.  Initially, these private options were less favorable compared to HUD's Home Equity Conversion Mortgage (HECM) program, especially since they offered a lower loan-to-value ratio. However, the landscape has evolved considerably in recent years.  Private reverse mortgage... Read Full Article

HELOC Resets Create ‘Perfect Storm’ For Reverse Mortgages

October 20, 2021     3 comments

Senior homeowners may be looking at a combination of events that could equate to the perfect storm brewing that doesn't even appear on most of their horizons. There is a combination of events, those that have already happened, those that are going to happen, and those likely to happen, that could leave many senior homeowners in a real bind. So much so that if they don't plan for it now, they could find that they are unprepared for the consequences that could come later. I'm talking about the combination of... Read Full Article

Wells Fargo Reverse Mortgage Review (2024 Update)

October 6, 2021     22 comments

Many years ago, some of the biggest banks in the nation offered reverse mortgages.  Among them, Wells Fargo was one of the largest lenders in the U.S. Home Equity Conversion Mortgage (HECM) market.  Today, that is no longer the case. Wells Fargo was at one time the largest reverse mortgage lender in the country. It was only a short time later that the company decided to close its reverse mortgage business, leading to an unexpected timeline of events: 2010: Wells Fargo reaches a staggering 25% market share 2011: Wells Fargo... Read Full Article

Financial Freedom Reverse Mortgage Review (2023 Update)

October 6, 2021     44 comments

At one time, there were quite a few major bank lenders offering reverse mortgages. In fact, in the early 2000s, the majority of reverse mortgage loans were closed by national banks. One of the large bank lenders was Financial Freedom, which most recently operated under the parent company CIT Group, and previously was owned by OneWest Bank and IndyMac. At its peak, the company originated more than 11,000 reverse mortgages annually and held the title of top wholesale lender. Summary: • Financial Freedom at one time was the largest... Read Full Article