America’s #1 Rated Reverse Lender

HUD Can Help Seniors by Raising the Reverse Mortgage Floor Back to 5%

May 20, 2023     1 comment

HUD has always been about serving the underserved. They even issued a Strategic Plan in March of 2022 outlining 5 areas they would concentrate on helping serve the community. You can find that plan online here. What you cannot find anywhere in that 82-page plan is a mention of senior homeowners who have been decimated by high-interest rates and HUD cutbacks in the Home Equity Conversion Mortgage (HECM) reverse mortgage program since 2009 when HUD first started seeing problems with the HECM reverse mortgage program due in part to a... Read Full Article

Protecting Your Home from Reverse Mortgage Foreclosure Threat

May 10, 2023     no comments

Dear ARLO, I just returned from the hospital, where my uncle was transported by his neighbor, thinking he was having a heart attack.  My uncle said he almost passed out after receiving a letter from his reverse mortgage lender threatening to foreclose. I was told he may be discharged tomorrow, but I need to quickly step in to help him, a retired veteran.  Before wasting your time, I read some comments on this site and found a few similar ones, but I need clarification, so I am asking for help... Read Full Article

Are reverse mortgages FDIC-insured, and do banking failures affect them?

March 20, 2023     no comments

This will be welcoming news if you are worried about reverse mortgages being non-FDIC insured. Fortunately for reverse mortgage borrowers, reverse mortgages are not FDIC insured and, therefore, are not endangered by all the turmoil with banks at this time. The U.S. Department of Housing and Urban Development (HUD) guarantees the reverse mortgage. Specifically, HUD guarantees that the borrower can access the full line of credit. Rates had been creeping up quickly in recent weeks, driving borrowers’ available funds on reverse mortgages down. Still, when Signature Bank... Read Full Article

Reverse Mortgages Are No Longer a “Last Resort”

January 18, 2023     2 comments

I've been told to wait on taking a reverse mortgage as a last resort.  Why? Let me start by saying that we are a reverse mortgage lender who will be the first to tell you that reverse mortgages are not for everyone.  But that's true of any financial product, and no loan is perfect for everyone. A reverse mortgage can be a great financial tool when used by the right borrower and for the right purposes.  You need to assess your circumstances to see if this is right based on... Read Full Article

5 Options When You Don’t Qualify for a Reverse Mortgage

December 15, 2022     2 comments

Many people who applied for a reverse mortgage sometime in the past but then applied again over the last year were surprised to see that when they looked at the numbers again, they received a lot less money now.  For some, the difference was so great that even though the past figures allowed them enough to repay the existing mortgage on the home, the new amount available to them was not even sufficient to pay off the balance of the existing loan. This left borrowers frustrated and, in some cases,... Read Full Article

Shocking Truth About Condominiums and Reverse Mortgages

December 6, 2022     80 comments

Many senior borrowers eligible for reverse mortgages or about to become qualified and live in condominium projects have yet to learn of the surprises that may be waiting for them.  You may know neighbors who live in your project, currently have reverse mortgage financing, and have heard about how easy it was. Unfortunately, changes in condominiums and HUD programs in the past few years have changed much of this.  If you live in a condominium, before you start making plans that include a reverse mortgage, you should know about the... Read Full Article

What is AARP’s Role in Reverse Mortgages?

November 29, 2022     19 comments

The American Association of Retired Persons (AARP) is a large, independent, nonprofit organization dedicated to helping people ages 50-plus achieve financial independence. While the organization, which serves 37 million older Americans and counting, doesn't offer reverse mortgage products directly, it does weigh in on them in some significant ways. Here's where AARP comes into play for retirees who may be looking into getting a reverse mortgage as a means to age in place. What does AARP think of reverse mortgages? AARP has supported reverse mortgage products to help... Read Full Article

Why Higher Rates Can Make the Best Time for Reverse Mortgages

October 26, 2022     no comments

Why would someone use a reverse mortgage while rates are up?! Due to inflation, interest rates have been climbing since early this year and borrowers receive less money on the loan at today’s rates than they did even a year ago.  However, it may still make sense for seniors to consider a reverse mortgage over moving, and here’s why.  Senior equity has risen to over 11 trillion dollars in the US. In many areas the market is getting much softer with the higher rates.  Houses are beginning to take longer to sell and... Read Full Article

Reverse Mortgage Servicing: Setting the Record Straight.

September 28, 2022     38 comments

Servicing is a critical component of the reverse mortgage.  It’s also one of the most misunderstood functions by borrowers.  A reverse mortgage goes through several different cycles throughout the life of the loan. The loan begins in the origination stage, moves to close, and then enters the servicing phase, where the reverse mortgage will remain throughout the life of the loan - but that doesn't necessarily mean that it will stay with the same servicer throughout the life of the loan! Reverse mortgage servicing is important because this is the... Read Full Article

How a Reverse Mortgage Deed in Lieu of Foreclosure Works

September 19, 2022     70 comments

My mom procured a reverse mortgage when property values were high. She can no longer live alone in the home and has vacated it; we cannot sell it because the home has devalued in accordance with the failed economy. The family is attempting to process, through an attorney, a Deed in Lieu of Foreclosure, but the loan has been transferred to 3 different loan companies since mom vacated the property 5 months ago, and they have ignored the attorney's letters and continue to send mailings telling my mom that they... Read Full Article