Archive for the ‘Reverse Mortgages’ Category

HUD Collecting Information on Reverse Mortgage Counseling Consumers

The Department of Housing and Urban Development (HUD) is planning to collect information on consumers who have participated in the Home equity Conversion Mortgage (HECM) counseling sessions.
HUD mandates these sessions as a way to protect potential HECM borrowers from lack of understanding about the HECM product. By surveying counseling participants, HUD plans to use the [...]

Common Misconceptions about Reverse Mortgages

There are significant misconceptions which circulate, through word-of-mouth, on Internet sites and even in media reports, which relate to reverse mortgages. To set the record straight, we scanned the internet and identified some of the most frequently cited instances of misinformation. Here we aim to set the record straight with some straight facts.

False: When [...]

Moving Ahead through Retirement

Imagine that you are about to retire. Your health is good, you have no debts, your Social Security benefits are about to kick in and between that, your pension and your savings, you’ll be able to make it through each month. Unfortunately, “just making it” pretty much describes the next several decades of your life. [...]

Reverse Mortgage – Bottom Line

If you’re considering applying for a Home Equity Conversion Mortgage, you’ll probably want to look at the pros and cons of the loan – the upfront costs, the loan fees, your responsibilities under the terms of the loan and your options. But when it comes right down to it, in making your decision, the [...]

HECM 3.0 — New and Improved

Home Equity Conversion Mortgages (HECMs) have evolved significantly since they were first introduced in 1989. Today they offer senior homeowners a safe and secure strategy for borrowing against their home’s equity.

Since its inception the HECM program has undergone a number of significant changes. Some of these include
· Introduction of the HECM for Purchase which allows [...]

The Reverse Mortgage as a Retirement Tool

EBRI, the Employee Benefit Research Institute (EBRI), a think tank dedicated to encouraging and enhancing the development of public policy and employee benefit programs via objective research and education, has published findings that indicate that Americans are not adequately prepared for their retirement years. EBRI estimates that roughly two-thirds of Americans are relying on [...]

Reverse Mortgages: What is “Willing and Able”?

In April 2015, a new tool was put into place to determine whether a potential borrower would be eligible to acquire a Reverse Mortgage. The Department of Housing and Urban Development began to enforce a criteria that is called “willing and able” that determines that the potential borrowers are prepared to abide by the loan’s [...]

Reverse Mortgage Stabilization Act of 2013 – Customer Safeguards

If you’re exploring the Reverse Mortgage option, check out the new book by Shelley Giordano, What’s the Deal with Reverse Mortgages. Giordani is the principal of a Reverse Mortgage Consulting Firm, the  Longevity View Associates. She also acts as the chair of the nonprofit Funding Longevity Task Force. Giordani’s book can help you understand your [...]

What Can You Expect From a Reverse Mortgage Counseling Session?

Reverse Mortgages are popular borrowing options for older Americans. But before you can start the process of applying for a Home Equity Conversion Mortgage (HECM) loan, the Department of Housing and Urban Development mandates that you attend a reverse mortgage counseling session. What does that mean?
To get approved for a HECM loan, you must attend [...]

Reverse Mortgage Draw Options – Choose the Line of Credit

The Reverse Mortgage is promoted both as an option that allows seniors to add to their retirement income and as a “loan of last resort” for retirees who must access the equity that they hold in their home in order to meet regular expenses.
The HECM loan was initiated in 1989. Slight revisions have been made to [...]

Changes in Reverse Mortgage Rules Saves Homes for the Surviving Spouses

HUD has again changed its policy regarding the rights of surviving spouses in regards to Reverse Mortgages. Now loan servicers can assign a reverse mortgage loan, in which there is a surviving spouse, back to HUD. The lender can then make a claim for money owed against the FHA insurance fund.
Nation’s Housing
Following the passing of [...]

Where does the HECM Non-Borrowing Spouse Rule Stand Today?

The Department of Housing and Urban Development (HUD) continues to look for ways to deal with Home Equity Conversion Mortgages (HECMs) mortgagees and servicers vis-à-vis non-borrowing spouses.
In an August 24, 2015, letter to the National Reverse Mortgage Lenders Association (NRMLA), HUD followed up on their January 9, 2015 letter by continuing to reject industry requests [...]

A New Approach to Protecting HECM Consumers

Consumer advocates worry that HECM borrowers don’t really know enough about the loan, or how the loan works, when they sign on the loan. Reverse mortgages work differently and are much more complicated than forward mortgages – the typical type of mortgages that the people use when they purchase a home. The discrepancy between naïve [...]

Reverse Mortgage to Purchase a Home: HECM for Purchase

Many seniors who investigate the options available to them for downsizing find that they have some hard decisions to make. They may have a substantial amount of equity in their current home and must then decide whether they should take out a loan and prepare to pay mortgage payments on their reduced retirement income or [...]

Considering a HECM loan? Prepare Yourself to Get the Most out of your Reverse Mortgage

Imagine that you’ve been blessed with a wonderful family, good friends and a supportive community. Your children are off on their own and they’re not interested in living in your house when you no longer need or want to live there. You might want to leave it to the kids so that they can sell [...]

Consumer Financial Protection Bureau and Reverse Mortgage Advertising

Reverse mortgages are marketed to senior homeowners. These advertisements can be found on many major media channels including print, television, radio and internet. Oftentimes the advertisements feature celebrity spokespeople who describe these Reverse Mortgage loans in glowing terms.

The Consumer Financial Protection Bureau (CFPB) recently issued a report, based on their review of such advertisements. They [...]

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 [...]