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Top 5 Reverse Mortgage Rules You Must Know

March 6, 2018     no comments

Applying for and taking out a reverse mortgage loan is an important decision for senior homeowners, and it’s one that deserves time and research. Reverse mortgages enable homeowners 62 years or older to supplement their retirement income by converting a portion of their home’s equity into accessible cash flow. Reverse mortgages are powerful financial tools, but they are not one-size-fits-all. To fully understand the ins and outs of this product, homeowners should remember and be aware of the following reverse mortgage rules: There’s a Lending Limit For HECMs As... Read Full Article

Reverse Mortgages and Trumps Tax Reform

January 31, 2018     8 comments

You can be forgiven for not knowing exactly how tax reform will affect reverse mortgages  -- after all, with the legislation itself passed hastily to capitalize on rare consensus among Congressional Republicans, accountants, and other financial professionals will likely be busy sorting out the implications through tax day and beyond. For many homeowners, the disappearance of a tax deduction for home equity interest will have a significant impact on their annual tax bills, whether they have a forward mortgage or a HECM product.  But as retirement blogger Tom Davison points... Read Full Article

5 Key Reverse Mortgage Changes Moving into 2018

December 31, 2017     2 comments

Another year has come and gone… Where is the time going?  It sounded strange to say 2017 all year and now 2018 is upon us.  This year, the reverse mortgage industry experienced many changes. 2017 HUD Surprised Industry with Massive Changes  In September, HUD sent the entire industry into a tailspin by announcing changes that were to take effect a month later in October.  Instead of the condo spot approval program finally coming back, we had to adhere to more restrictive Principal Limits and lower interest rate floors resulting... Read Full Article

Higher Reverse Mortgage Limits Announced for 2018

December 8, 2017     8 comments

BREAKING: 2022 Reverse Mortgage Limits Soar to $970,800 Higher Reverse Mortgage Limits Coming January 1st 2018 Starting in 2018, lending limits for government-insured reverse mortgages will increase, allowing borrowers the opportunity to access more of their home equity than ever before. The vast majority of reverse mortgages are federally-insured Home Equity Conversion Mortgages (HECMs) that are backed by the Federal Housing Administration. These loans allow homeowners age 62 and older to convert a portion of their home equity into loan proceeds that can be used to supplement retirement spending.... Read Full Article

All Reverse Mortgage® to Buy in Del Webb Community

November 29, 2017     no comments

An All Reverse Mortgage® Client Success Story in Del Webb Active Adult Retirement Community  Nancy D’Angelo first heard about using a reverse mortgage to buy a home through some friends with a problem: They were moving from the South to Orange County, Calif., where sky-high real estate prices meant they couldn’t cover the cost of a new home just by selling their old one. The issue hit home for D’Angelo, who was looking to move from Antelope Valley, California to Orange County to be closer to her daughter,... Read Full Article

HUD Lowers Limits, Raise Costs Under Trump/Carson

August 29, 2017     no comments

In our recent article dated July 26, 2017, we indicated that a new administration in Washington marks a time of uncertainty and uneasiness as people try to guess what the new policies will be.  The announcements made by HUD today answered some of those questions with regard to the Home Equity Conversion Mortgage program. Lenders had been hearing bits and pieces of welcome news over the past months of possible condominium approval changes and changes to come for non-borrowing spouses so when it was announced that HUD was issuing a major... Read Full Article

California Reverse Mortgage Counseling Rule Change of 2017

August 22, 2017     4 comments

Purpose The purpose of this bulletin is to restate and update new California requirements regarding required disclosures, counseling, timing for when certain fees may be incurred on the borrower’s behalf, and when other activities related to the origination and processing of a loan may be performed. Implementation These requirements are effective for all California reverse mortgages with applications taken on or after August 22, 2017 Required Disclosures Prior to counseling, the applicant must receive the list of HUD-approved counseling agencies as well as the required Reverse Mortgage Worksheet... Read Full Article

HOA Payment History Can Affect Reverse Mortgage Eligibility

August 22, 2017     10 comments

We live in an area with an HOA we had a dispute with them that was settled but that has come back to bite us big time. We have excellent credit have paid our insurance, taxes, and mortgage on time but apparently it is not enough to satisfy HUD according to our mortgage dealer. They wanted $70,000 up front for down payment to pay insurance and taxes even though we full well would have done so anyway, after all who would want to lose their home? Since HUD... Read Full Article

What the Trump Administration Means for Reverse Mortgages

July 26, 2017     no comments

2020 Update: President Trumps’s FY2021 Budget Forecasts Strong HECM Performance The White House this week released a Fiscal Year 2021 proposed budget that predicted strong economic numbers for the Home Equity Conversion Mortgage program during the next federal fiscal year that begins on October 1, 2020. The budget projects the HECM program will operate at a credit subsidy level equal to negative 2.39, which means the program will generate substantially more receipts than it pays out in claims for that year’s book of business. Budget estimates show HECM endorsements totaling... Read Full Article

A Look Into The Reverse Mortgage Process and Timeline to Closing

July 11, 2017     no comments

I understand there are many variables involved in 'how long' it takes, some of them due to applicant errors and misunderstandings.... but I would appreciate an average of start to finish for a reverse mortgage loan? I assume when the quotes arrive they will include 'next step' but what is the typical processing time to complete this type of transaction? We spell out the entire process when we deliver a quote, from the required counseling to the closing process including signing the loan documents and the 3 day right of... Read Full Article