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Reverse Mortgage Lenders in Florida: Saving FL Seniors Thousands!

February 2, 2013     3 comments

Like most states, Florida allows borrowers to get any of the reverse mortgage products available under programs offered by the Federal Housing Administration. Because reverse mortgages are offered only to people who are ages 62 and over, Florida—which counts more than 17% of its population in the 65-plus age group—is one of the most popular states for reverse mortgage loans. Ranking fourth for reverse mortgages behind California, Texas and New York, Florida is known historically as a retirement destination because of its mild climate and also the fact that many... Read Full Article

OFFICIAL: Fixed-Rate Standard Reverse Mortgage Elimination Date

January 30, 2013     2 comments

April 1st Deadline Approaching: Apply Online Now After much anticipation, HUD has finally announced their exact time frames for the elimination of the Fixed Rate Standard Home Equity Conversion Mortgage (HECM or “Heck-um”).  For all new FHA Case numbers issued on or after April 1, 2013, any borrower who still wants a fixed rate loan will be limited to only the Saver Program.  HUD also stated that all fixed rate Standard loans must close on or before July 1, 2013. The Saver Program does not give borrowers access to as... Read Full Article

2013 Update: Reverse Mortgage Purchase in Texas Still Coming…

January 18, 2013     no comments

Update: 11/08/2013 Prop 5 Passes in Texas, But Implementation May Take Longer Proposition 5 passed by a wide margin this week, paving the way for HECM for Purchase to be offered in Texas. To pass, Prop 5 needed approval by 51 percent (50% plus 1) of voters, but the final tally was 62 percent. During the NRMLA Business Meeting, NRMLA President & CEO Peter Bell presented an award to Scott Norman, Vice President at Sente Mortgage, for his efforts to get Proposition 5 passed. Norman indicated in a separate email... Read Full Article

How to Payoff a Reverse Mortgage at 95% of Appraised Value

January 15, 2013     27 comments

Hello All Reverse, I have read the information that was provided on the website and the questions and responses. I am concerned that there is some contradictory information here. I would like you to offer some clarification which will help me better understand what happens to my mother's home and the possible sale to grandchildren. Since the text on this website states in one paragraph that the loan is non-recourse and the balance is not due to the lender by the heirs of the estate for a shortfall on the... Read Full Article

Reverse Mortgage Lenders in California: Saving CA Seniors Thousands!

January 4, 2013     no comments

If you live in California and are looking into getting a reverse mortgage, there are a few specifics to consider based on the state where you live. It’s first important to remember that Home Equity Conversion Mortgages are insured by the Federal Housing Administration on a national level. This means that all borrowers who take out an FHA-insured loan are guaranteed the same protections regardless of the state where they live. But in a few states, including California, there are some additional overlays and differences to consider. Here... Read Full Article

Reverse Mortgages may be Saving the Government BILLIONS.

December 22, 2012     no comments

Reverse mortgages were designed to help senior homeowners age in place. While they accomplish that goal for thousands of people today, there’s also a big picture benefit to the reverse mortgage program as a whole: It saves government money on entitlement programs such as Supplemental Security Income and Medicaid. In fact, by some estimates, reverse mortgages could save as much as $5 billion a year—or more—in Medicaid spending. “In this evolving trend toward fiscal responsibility, it isn’t just that we help seniors,” says John Mitchell, owner and founder of Austin, Texas-based Reverse Mortgage USA. Mitchell published... Read Full Article

2013 Reverse Mortgage Loan Limits – $625,500 Extended

December 7, 2012     no comments

OFFICIAL: FHA Announces Fixed Rate Standard Reverse Mortgage Elimination Date.. On December 6, 2012, HUD issued Mortgagee Letter 12-26 which among other things, announced the extension of the $625,500 maximum limit on the Home Equity Conversion Mortgage (HECM or "Heck-um") program. The lending limit shall remain at 625,500 through December 31, 2013. Excerpts from that Mortgagee Letter appear below: This means that borrowers who own homes valued above $417,000 will continue to be able to realize more of that additional value in their reverse mortgage request. Since the borrowers' eligibility... Read Full Article

2013 to Bring Sweeping Reverse Mortgage Changes

December 7, 2012     6 comments

OFFICIAL: FHA Announces Fixed Rate Standard Reverse Mortgage Elimination Date.. We have been hearing for a little while now that the Home Equity Conversion Mortgage (HECM aka "Reverse Mortgages") was going to have to undergo some changes as a result in the shortfall in the FHA's budget. The FHA shortfall turned out to be over $16 Billion and the HECM reverse mortgage program accounted for about $2.799 Billion of that shortfall. HUD Secretary, Shaun Donovan appeared before Congress this week regarding the issue. Most of the commentary we heard over... Read Full Article

2013 Reverse Mortgage Changes Underway

December 3, 2012     no comments

OFFICIAL: FHA Announces Fixed Rate Standard Reverse Mortgage Elimination Date.. You may have seen recent headlines about the Federal Housing Administration being in the “red,” as a result of the housing crisis. A recent audit of the FHA’s financial position found its net worth adds up to a negative figure, and thus will result in changes to the agency’s various housing programs—reverse mortgages included. The Department of Housing and Urban Development, which administers FHA’s reverse mortgage program, has not yet specified any program changes. If you are thinking about getting... Read Full Article

MMI Fund Under Stress forces HUD to Make Changes

November 19, 2012     no comments

OFFICIAL: FHA Announces Fixed Rate Standard Reverse Mortgage Elimination Date.. Nothing Stays the Same but Change. It's more than just a song.. especially in the world of reverse mortgages. Just when the rates are at the lowest in the history of the program for some of the products, the costs to borrowers are at their lowest for some programs and home values are beginning to rise, HUD announced on Friday that the Insurance Fund is running at a large deficit and that changes must be made. While it is generally... Read Full Article