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UPDATE: We are happy to report that Knight Capital announced that the trading debacle did not affect the reverse mortgage lending unit of Urban Financial Group. According to the Article published in Reverse Mortgage Daily, Urban Financial will continue with business as usual and that is very good news to reverse mortgage borrowers everywhere! Urban Financial Group Based out of Tulsa Oklahoma was the #2 Retail Originators of HECM Reverse Mortgage Loans in July of 2012 and also funded many more of the HUD-Insured loans through their wholesale and correspondent... Read Full Article
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A reverse mortgage is a loan that can help older Americans age in place during retirement. The loan can be a lifesaver for many seniors who are retired and live on a fixed income. In a nutshell, a reverse mortgage allows borrowers to access the equity in their homes and unlike other loans, they’re not required to repay the loan until the borrower moves, sells the home, or passes away. Reverse Mortgage Requirements Before you take out a reverse mortgage, it’s important to understand the requirements of the loan.... Read Full Article
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OFFICIAL: FHA Announces Fixed Rate Standard Reverse Mortgage Elimination Date.. It's been a while since we did our last State of the Union message for Reverse Mortgages and we feel that it's time to update everyone on the program. There have been some changes in the market and the players, and everyone is still waiting for the other shoe to drop on financial assessment. In the meantime, the Consumer Financial Protection Bureau has made several announcements regarding reverse mortgages as well. Firstly, Met Life Financial became the largest lender in... Read Full Article
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In conjunction with an in-depth study about the reverse mortgage business and its products, the new Consumer Financial Protection Bureau recently released a consumer guide on reverse mortgages, which is now available on its website. The guide, which accompanies other such consumer resources on reverse mortgages, allows you to ask yourself some simple questions about whether this type of loan is right for you. In four pages, the CFPB explains what a reverse mortgage is and how it works. Basically, it’s a loan that works in reverse, essentially allowing you... Read Full Article
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The Consumer Financial Protection Bureau (CFPB) released a report on reverse mortgages in June that found consumers need better information in order to make the right decision about whether to take out the loan. “Reverse mortgages are complex and have the potential to become a much more pervasive product in the coming years as the baby boomer generation enters retirement,” said CFPB Director Richard Cordray. “With one in 10 reverse mortgages already in default, it is important that consumers understand what they are signing up for and that it is... Read Full Article
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One of the biggest factors in determining how much money reverse mortgage borrowers can qualify for is their home value. It’s not surprising, then, that the state of the nation’s housing market might be one of your primary concerns if you’re considering taking out this type of loan. Anyone thinking about getting a reverse mortgage is probably asking the million-dollar question: Has the market fully bottomed out, and are home values ready to rebound? Housing economists have been trying to figure out the answer to this for the past few... Read Full Article
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Getting a reverse mortgage is a big decision, and part of the process involves deciding whether to work with a mortgage broker or lender. Both entities have the ability to offer a reverse mortgage loan, and both are governed by the same sets of guidelines under the Federal Housing Administration’s Home Equity Conversion Mortgage HECM program. As long as you’re getting a reverse mortgage through the HECM program, you’ll be safeguarded by the consumer protections it provides, whether you’re working with a broker or a direct lender. Reverse Mortgage... Read Full Article
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Question from our reader: I would like to know, if my parents are taking a reverse mortgage, will I get something left when they die? Also can the bank charge me for that reverse mortgage or it will end will them dying? I feel a bit stupid but I’m not sure at all about that and I really would like to know it. These are things you should know and we encourage borrowers and their heirs to ask all the questions they want. Firstly, the reverse mortgage is a... Read Full Article
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Obtaining a reverse mortgage is a big financial decision and it’s important you work with a lender that can walk you through the process with your best interests in mind. As you narrow down your lender search, make sure you are working with someone who understands reverse mortgages, makes you feel comfortable and shows strong dedication to serving seniors. When looking for a reverse mortgage lender, look for one who: Understands Reverse Mortgages While reverse mortgages are similar to traditional, “forward,” loans, there are quite a few differences as well.... Read Full Article
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From our reader: We have 2 homes, no mortgage. We do not need money at the present time. Could it be to our advantage to get reverse mortgage? Thank you for your help. The question as to whether or not it could be to your advantage depends entirely upon you. I would not advocate having borrowers incur costs or take a loan they do not need for no reason, but there are things that HUD has indicated will change in the program this year and others that likely... Read Full Article