Archive for the ‘Reverse Mortgages’ Category

Pay Attention to New Reverse Mortgage Rules, Protections and Cautions

The surviving spouses of HECM borrowers are now better protected against eviction. A rule, recently issued recently by the Federal Housing Administration, aims to clarify the steps that spouses need to take to prevent foreclosures. However, new study by the Consumer Financial Protection Bureau has determined that borrowers may still get into trouble due to [...]

New Forms and Rules are Designed to Protect Reverse Mortgage Borrowers Consumers

The Consumer Financial Protection has put together a summary of the new rules and forms that potential Reverse Mortgage borrowers will encounter, in order to better prepare these borrowers for the process ahead.

Some highlights of the new information:
New rules and forms are aimed at making mortgage information easier for borrowers to understand are [...]

Don’t Apply for a Reverse Mortgage Until You Fully Understand the Loan’s Pros and Cons

You have probably seen ads that promote Reverse Mortgages. These ads seem to promise the moon, with headlines such as “A Reverse Mortgage Can Provide Financial Freedom for Your Retirement” and “A Reverse Mortgage can Revolutionize your Senior Years.” For individuals who are exploring the options of taking a Reverse Mortgage, it’s important to [...]

Why Are Reverse Mortgage Starts Increasing?

Reverse mortgages — technically known as Home Equity Conversion Mortgages or HECMs — seem to be advertised more frequently these days. Lending institutions confirm that there are, indeed, many more requests for information about Reverse Mortgages coming in to their companies.
There are a couple of reasons for this upsurge:
1. The population is aging. As more [...]

Compare and Contrast Lending Institutions for the Best Reverse Mortgage Deal

Senior homeowners who want to explore the reverse mortgage market for the best deal — finding the lowest interest rate and origination fee – must know how to obtain the most updated and comprehensive data. Unlike the standard mortgage market in which price data is available from many sources, including 3rd party sources, multi-lender websites, [...]

Reverse Mortgages: Be Prepared

The image of an elderly man rocking on his front porch flashes across the television screen. The announcer tells us that this man is happily living off tax-free income, with no mortgage, for the rest of his life.
“You can do the same,” the announcer says as his voice rises enthusiastically “with a reverse mortgage.”
According to [...]

FHA HECM Guidelines Set to Propel Reverse Mortgage Industry Forward

The Federal Housing Authority’s Financial Assessment, which went into effect on April 27th, has altered home equity conversion mortgage underwriting procedures to resemble those used for forward mortgages. Seniors who want to borrow, based on the equity that they have in their home, will now have to prove, with documentation and paperwork, that they can [...]

FHA Implementing Tougher Credit Standards for HECM Loans

Starting on April 27th 2015, the Federal Housing Administration (FHA) began implementing tougher credit standards for reverse mortgages.
Reverse mortgages are available for senior homeowners aged 62 and above who have equity in their homes which they want to use to obtain cash. A reverse mortgage may be applied to a primary residence. A borrower may [...]

Five Things that you Should Know About Reverse Mortgages

If you own your own home, you can access the equity that you have in your house to turn it into a pension. The Reverse Mortgage option gives you a tax-free monthly payout or a lump sum which you don’t need to repay until you die or sell your home.
According to the rules of the [...]

HECM Loans – Changes, Revisions, Today’s Situation and some Hints

The Home Equity Conversion Mortgage was introduced to the American market in 1989. The concept behind the HECM loan was that, in order to help seniors increase their income during their retirement years, the government, under the auspices of the Department of Housing and Urban Development, would help these individuals access the equity that they [...]

Non-Borrowing Spouse Rule – Where it Stands Today

In the ongoing saga of the HECM’s non-borrowing spouse rule, last week, the Department of Housing and Urban Development rescinded its August 2014 rule that was intended to keep as many non-borrowing Reverse Mortgage spouses as possible from being forced out of their homes upon the death of the borrowing spouse. Beginning in May 2015, [...]

Consumer Groups Fight HUD on Non-Borrowing Spouse Changes

Despite its ongoing efforts to address challenges faced by non-borrowing spouses of Reverse Mortgage borrowers, the Department of Housing and Urban Development (HUD) is receiving a scolding from consumer advocate groups, which denounce the agency’s latest guidelines on this matter.
In May 2015, senior advocates and the agencies’ attorneys sent a letter to HUD in which [...]

Estimates state that a Reverse Mortgage Could Help Boost Your Retirement Income By 30%

According to a recent Wall Street Journal article, when facilitated in conjunction with a few other retirement planning steps, taking out a reverse mortgage could help increase retirees’ annual income by up to 30%.
The information comes at a time when fears of financial security plague retirees and potential retirees. Reports indicate that few Americans are truly [...]

CFPB Guidelines and Advice for Reverse Mortgage Borrowers

The Consumer Financial Protection Bureau is embarking on a campaign to educate the American public about Reverse Mortgages. Many people are unaware of the differences between a traditional mortgage and a Reverse Mortgage. A traditional mortgage is used to buy or refinance a home. The lender lends you the money to buy or refinance the [...]

Understand a Reverse Mortgage Before You Apply

Rose Camden’s mother passed away in 2013 after a long illness. Now Rose is about to lose her home.
Camden spent the last decade living with her mother in her house in Omaha, caring for her full-time. Rose thought she would simply inherit the house after her mother died, but she discovered that her mother’s reverse [...]

A Look at HECM Loans

Housing equity is often the most important wealth component
of senior homeowners in the United States. Reverse mortgages allow elderly homeowners to consume housing wealth without moving out of their home. Until recent years however, relatively few eligible homeowners used a reverse mortgage to access this income. Now, HECM loans are evolving. To understand the recent [...]

New HECM Guidelines for Seniors

Up until this month, one of the most attractive features of the HECM Reverse Mortgage was the lack of income or credit requirements. All homeowners 62 and older who lived in their homes in which the mortgage had either been fully paid or for which only a small mortgage balance remained were eligible for the [...]

Three Reasons that a Reverse Mortgage Might be the Right Move for You

Many seniors worry about their retirement. Some seniors are continuing to work to make up for their lack of retirement savings while others have planned for years and prepared themselves by setting aside money in 401(k)s and other investments. Some retirees rely on pensions and social security to keep them solvent during their senior years. [...]

Is This the Year to Obtain a Reverse Mortgage?

Financial analysts see that higher mortgage rates, lower down-payment loans and new mortgage regulations encompass some of the key mortgage trends for 2015. Potential Reverse Mortgage borrowers are wondering how this will affect their plans to apply for a HECM loan.
In a recent article, the Washington Post wrote” The government seems to be operating on [...]

Reverse Mortgages Pros and Cons

Over the last decade, reverse mortgages have come to be seen as an easy way for seniors to cash in their home equity to pay for living expenses. However, numerous seniors have learned that improper use of the product has led to subsequent financial problems later, including foreclosure.
Reverse mortgages can be helpful to borrowers but [...]