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
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.
Reverse mortgages are often perceived as expensive. You’ll hear this feedback from consumers and financial professionals alike. What makes a reverse mortgage expensive is that it is still an emerging industry. HECM or home equity conversion mortgages are FHA insured and still require mortgage insurance.Details
HUD is considering developing a smaller reverse mortgage. Lower proceeds ad COSTS! Better for folks who needs smaller amounts. read more: http://ping.fm/nc7TD
Motley Fool talks about options surrounding most retirees biggest asset, their home. How much home do you need? Should you pay off your mortgage? If so when? What items should you look at before tapping in to your equity as a retiree? When is it optimal to consider a reverse mortgage? How can you use a reverse mortgage…Details
“Use a reverse mortgage for purchase, really! How do you do that?” This is often the response when I talk to real estate professionals and potential clients. Purchasing a home with a reverse mortgage is not common place. It is mostly an unknown concept. There are a number of reasons why you would use a reverse mortgage to buy a home.Details
The Department of Housing and Urban Development (HUD) is introducing a new counseling protocol to help borrowers consider whether a reverse mortgage is the right choice for them.Details
According to James Milano, an attorney with the Washington, D.C. firm, Weiner Brodsky Sidman Kider, the urge to regulate may be reactionary. “State regulators may feel responsible for the subprime mortgage meltdown and don’t want to be fooled again,” he posited. Milano cites Washington State, California and Minnesota as having recently introduced bills and says…Details
Monday, March 09, 2009 Dear Assemblywoman Harkey, I respect the proposal of AB 329 and the spirit of its creation. My name is Angella Conrard. As a reverse mortgage originator of 4 years with a background in healthcare I can speak from experience. I am also the president of the National Aging in…Details