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

Reverse Mortgages on Modular Homes & Commercial Use Now Eligible

November 2, 2012     2 comments

All Reverse Mortgage is pleased to announce enhancements to our reverse mortgage guidelines in the following areas: Modular Home Eligibility Modular homes are an eligible property type. Definition: A modular home is constructed of pre-made parts and unit modules that are transported on a flatbed truck from the factory to the building site. At the building site, these house sections are lifted onto the foundation where they are permanently anchored. Modular refers to the construction method and not a type of home. Note: Manufactured or Mobile homes are not considered Modular... Read Full Article

Reverse Mortgage vs HELOC: Side-by-Side Comparison

October 23, 2012     no comments

I would like to know how a "line of credit" would work compared to a HELOC.  I owe a 2nd on my home for approx. 9,000.00.  The first will be paid off in Dec. 2012.  My home NOW is worth approximately $210,000.00.  The 2nd is with Chase Home Equity. I would like to ONLY borrow enough at times on the LOC to supplement my SS check of 1272.00 and I also have income from a private loan that pays my second each month. I have NO other bills except insurance,... Read Full Article

Purchase Reverse Mortgages in Texas Are Coming Soon…

October 22, 2012     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

Tax & Insurance Defaults Will Change Reverse Mortgages

October 19, 2012     12 comments

We just returned from the National Reverse Mortgage Lenders Association (NRMLA) annual meeting at which we were able to listen to several speakers from HUD who spoke about the reverse mortgage and some of the challenges they are having with the program.  Seems that they are very concerned with the high number of tax and insurance defaults from many borrowers.  The tax and insurance defaults increase for those borrowers in certain areas an under certain circumstances.  In order to be certain the reverse mortgage program remains sound, HUD indicated changes are... Read Full Article

Which Presidential Candidate is Better for Reverse Mortgages?

October 5, 2012     2 comments

The clock is ticking down to the 2012 presidential election as Republicans and Democrats battle for control of the White House. Looking at senior-related issues, both candidates’ plans for Medicare are getting a lot of coverage, but another topic that’s also garnering attention is the ability for seniors to age in place. While reverse mortgagesaren'tspecifically on either candidate’s platform, they can be a great option for people who want to stay in their homes while either eliminating their monthly mortgage payment, or providing additional cash flow. However, a Republican or... Read Full Article