America’s #1 Rated Reverse Lender

Who is borrower when trust is involved? Trustee, Trustor or Beneficiary?

January 22, 2021     2 comments

We just received a great question from one of our readers: Hey ARLO! Thanks for being around to help so many looking for opinions on Reverse Mortgage questions. I am the Trustee of a revocable trust where my Mother-in-Law is the Trustor & Beneficiary. I thought I was close to signing a reverse mortgage with a Lender. Now the Loan underwriter/lender is having issue with Trustor of Trust as she is unable to take care of her finances. This phrase is included in a letter, requested by lender, from the... Read Full Article

Reverse Mortgage Treasury (CMT) as Transitions to SOFR

October 12, 2020     2 comments

Overview With GNMA's recent announcement, HECM ARMs using LIBOR as their index will soon not be viable to originate. While LIBOR has been destined to be phased out for some time, this unexpected announcement will require a faster transition than was expected. The framework around SOFR, the anticipated replacement to LIBOR, has not been fully developed yet, and as such adjustable-rate HECM loans will need to use CMT (Constant Maturity Treasury)– at least in the short term. This will be a back-to-the-future for the reverse mortgage industry. CMT-based HECM products were... Read Full Article

What COVID-19 Means For Reverse Mortgages

April 1, 2020     22 comments

2022 UPDATE: FHA Clarifies COVID-Relief Options for Borrowers The Federal Housing Administration published a technical update to Mortgagee Letter 2021-15 that will provide additional time for borrowers economically impacted by the COVID-19 pandemic to seek relief. Details were provided this week in Mortgagee Letter (ML) 2022-02. ML 2022-02 clarifies that the first legal deadline and Reasonable Diligence Time Frame are extended by 180 days from the later of either: the expiration of the foreclosure moratorium for FHA-insured Single Family Mortgages; or the expiration of the borrower’s COVID-19 forbearance or Home Equity Conversion Mortgage... Read Full Article

2020 Reverse Mortgage Changes: New Limits, New Programs!

December 13, 2019     10 comments

What’s New and Exciting for 2020 Reverse Mortgages? It seems that reverse mortgage borrowers have been getting nothing but bad news for the past 7 years. HUD has implemented more restrictions, lowered amounts available to borrowers, increased eligibility requirements that borrowers had to meet and overall, reverse mortgage borrowers have had little to be happy about for a while. Don’t get us wrong, it hasn’t been all bad news.  Over that same period, properties began to rise in value again after 2012 giving borrowers more equity, jumbo & proprietary programs... Read Full Article

2020 Reverse Mortgage Limits Officially $765,600

December 4, 2019     2 comments

BREAKING: 2023 Reverse Mortgage Limits Reach All-Time High $1,089,300! HUD just announced that the current reverse mortgage loan limit for the HUD Home Equity Conversion Mortgage (HECM) will be raised from $726,525 to $765,600 effective January 1, 2020.  The HUD Mortgagee Letter announcing the increase, can be found on the HUD website here: https://www.hud.gov/sites/dfiles/OCHCO/documents/19-20hsgml.pdf . After the limits remained unchanged for many years, this is the 4th year in a row where HUD has raised the lending limit.  It had remained stagnant at $625,500 since 2009 when the limits... Read Full Article

Reverse Mortgages: Remaining Principal Limit After 12 Months

November 16, 2019     4 comments

My father recently passed away and left his duplex to my brother and I, It is paid for and all taxes are current. I have lived in one side for over 25 years and my brother lives 100 miles away. I would love to keep this place and have my daughter move in next door with a reduced rent. I am 65 years old. The house was custom built in 1976, it's stucco with a tile roof and is very sound and in excellent shape..I do not have the cash... Read Full Article

Reverse Mortgages for Purchase in Texas Now Approved!

November 16, 2019     2 comments

As the last state in the union to approve it, Texas voted in early November to allow the reverse mortgage for purchase product to be offered to its residents and those moving to the state. Texas has lagged behind other states that have long offered this type of reverse mortgage loan due to longtime homestead laws that place certain barriers on access to home equity. However, after the state’s electorate approved “Prop 5 " on November 5, the loan will be made available to all Texas residents through an amendment... Read Full Article

MetLife Reverse Mortgage Review (2023 Update)

September 22, 2019     2 comments

Today, most reverse mortgages are closed by non-bank mortgage lenders across the U.S. But going back a few years, most reverse mortgage volume was conducted by big, national banks.  Among those lenders was MetLife Bank, which used to be operated by the large national insurance provider MetLife. In fact, at one time, MetLife was the largest Home Equity Conversion Mortgage (HECM) lender by volume, prior to exiting the business in 2012.  If you know someone who has a reverse mortgage today, it’s very possible that he or she worked with... Read Full Article

HUD Announces Condo Changes to Take Place October 15, 2019

August 16, 2019     4 comments

HUD Announces Condo Rules with Changes to Take Place October 15, 2019 Since we last wrote, HUD has finally announced that they are bringing back the single-unit approvals for condominiums! HUD just announced that they will once again begin allowing unit owners to obtain FHA-insured loans on individual units in condo projects that have not gotten the entire project approved, under certain circumstances. This is great news for borrowers who have been shut out of FHA-insured loans on both the forward and the reverse side for condominiums due... Read Full Article

Having Problems with Celink Reverse Mortgage – Please Help!

July 12, 2019     47 comments

My father passed away at 91 years of age. He divorced his second wife of 12 years in 2007. She has since returned to her home country of Mexico and has had no further family contact since then. She quitclaimed her interest in the property in exchange for a $70,000 financial settlement with funds obtained from their reverse mortgage line of credit. His last will lists my brother and me as co-executors (five surviving sons; we are not on the title). His estate does not require probate in California. Problem:... Read Full Article