The falling housing prices have affected the FHA reverse mortgage program.Details
A couple of years ago I was shopping for reverse mortgage product known as ‘Simple 60”. After endless calls and conversations, I finally reached the conclusion that it was indeed a rare commodity. I had almost given up when my eyes glanced on a nicely placed add within 866 number with the contact name of…Details
The first jumbo reverse mortgage product in years has been released by Generation Mortgage. This loan is more appropriate for homes with home values of $500,000.00 to $6,000,000.00. This jumbo product has some unique attributes that might be an insight to the trend in jumbo reverse mortgages. The product requires a minimum FICO score of…Details
May 20, 2010 The Honorable Christopher J. Dodd Chairman, Senate Banking Committee 534 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Dodd: I am writing today with regard to a SA 3941, a proposed amendment to S 3217, which is being offered by Sens. McCaskill and Kohl. Though the amendment is no doubt well-meaning,…Details
With our current economic challenges, those of us looking forward to retirement need to be well-informed about our financial needs in coming years. And not only pre-retirees, but individuals already in retirement need to be wise to the changing economic environment. The good news is there are trained professionals who keep abreast of changes in…Details
Summary of New Health Care Reform Law Recently, two pieces of legislation, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 were signed into law. Together, these pieces of legislation make the most significant reform to health care in the United States since the enactment of Medicare.…Details
I have just returned from the national Association meeting on reverse mortgages. It certainly was a whirlwind of information, considering today’s economy and real estate environment. Here are a few highlights from the meeting: 1. Trends in FHA, by law. FHA must have a positive cash flow. It cannot have a shortfall. Last year,…Details
Advantages and Disadvantages of Prepaid Plans One way to plan in advance for the end of one's life is to sign a formal contract called a "preneed funeral plan." With this plan, money to pay for a funeral and/or burial is held in a trust, in an escrow account or paid through an insurance policy…Details
For the first time in the history of the FHA Reverse Mortgage program, it is running at just under an $800 million dollar deficit.
FHA insures reverse mortgages against lender losses and borrower owing more than their home values when their reverse mortgage loans become due.* until recently the FHA reverse mortgage program has never run a deficit. But with falling real estate values, FHA has been paying more on claims.