Archive for November 2012

Loan Oversight

Two Federal watchdogs, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) announced that they are issuing warning letters to mortgage brokers and mortgage lenders regarding possible misleading advertising for mortgage products, including misleading information provided to Reverse Mortgage applicants. In explaining the action CFPB Director Richard Cordray said “Misrepresentations in advertising [...]

Making the Decision to take a Reverse Mortgage

When the economy crashed in 2008 many seniors who had been managing a budget within their Social Security and pension income found themselves with reduced revenue and unable to meet their basic expenses. The crunch impacted on everyone but retirees were particularly hard hit. They lacked the resources to find new sources of earnings at [...]

Reverse Mortgages — Working with the Originator

HECM (Home Equity Conversion Mortgages) are available to retirees aged 62 and older who want to access the equity that they hold in their home through a “Reverse Mortgage.” Although these mortgages are federally insured through the Federal Housing Administration (FHA), the FHA does not actually grant the loan. Borrowers must approach originators who process [...]

Knowing What to Expect with a Reverse Mortgage

Homeowners aged 62 or older should determine the reasons that they need the money that a Reverse Mortgage provides and possible alternatives before submitting their application for the mortgage. The application process involves fees and costs which are applied even before the loan is approved. Reasons for applying for a Home Equity Conversion Mortgage (HECM) [...]