For retirees 62 or older, taking a Reverse Mortgage may be a wise financial move. A Reverse Mortgage can help finance a home improvement, pay off a current mortgage, supplement retirement income, pay for healthcare expenses or help the borrower move to a home that is in keeping with his/her new needs. Reverse Mortgages allow [...]
Archive for the ‘Reverse Mortgages’ Category
The Consumer Financial Protection Bureau’s new mortgage rules are scheduled to be implemented in January 2014. To help consumers navigate these new rules the CFPB has launched a new tool that will help potential borrowers find local housing agencies that can answer their questions or address any of their concerns.
According to the rules of the [...]
The Reverse Mortgage industry is now completing its second month of the new rules and regulations for the Home Equity Conversion Mortgage loan. Many of the issues and concerns which arose when the new Reverse Mortgage product was introduced are being clarified as the process begins to smooth itself out. One thing that is clear [...]
New changes to the federal Home Equity Conversion Mortgage program may lead toward increased collaboration between lending institutions, financial planners and senior borrowers. This is only one of the benefits of the revised HECM program, financial analysts and Department of Housing and Urban Development strategists believe.
There are a wide range of new rules and regulations [...]
Recent changes in the Home Equity Conversion Mortgage loan (HECM) eliminated the HECM Saver option but the HECM for Purchase continues to be a valuable alternative which allows seniors, age 62 or older, to purchase a new principal residence using their loan proceeds from the reverse mortgage.
The HECM for Purchase was designed to allow seniors [...]
As baby boomers enter their retirement years they often find themselves looking for strategies that will allow them to increase their income. Many people’s pensions took a hit during the economy’s downturn of 2008 and Social Security payments haven’t kept up with inflation. Some seniors look at their family home as a possible source of [...]
Industry analysts see the recent changes to the Home Equity Conversion Mortgage (HECM) program as a move that will strengthen the loan while simultaneously taking some of the risks out of the program. These lowered risks affect the Federal government which insures the loan, lending institutions which administer the loan and the borrowers themselves.
On September 30 2013 changes to the federally-guaranteed Home Equity Conversion Mortgage were implemented, changing the product and the type of person who will be using it.
Lending institutions, on the whole, were supportive of the changes, which require that senior citizens undergo background credit checks to ascertain their ability to maintain their loan obligations and [...]
Senior advocates, the legal community, the Reverse Mortgage industry, the government and retirees have been carefully monitoring a recent court case that set the AARP against the United States Department of Housing and Urban Development.
According to the Reverse Mortgage regulations a Reverse Mortgage can be taken out on the name of one homeowner, even if [...]
The new Reverse Mortgage Stability Act was signed into law in August and implementation of the law was effected this week. The Reverse Mortgage Stability Act set the stage for Department of Housing and Urban Development to tighten and streamline the HECM loan. HUD mortgagee letters 2013-27 and 2013-28 laid out the changes which have now [...]
If you are anticipating retirement or have already retired you are probably doing some financial assessments to determine how you will be able to live comfortably during your senior years. Once you’ve factored in your retirement funds, government pensions, annuities and other savings you may find that your income is fairly close to the bone.
The credit crisis of 2009 taught American homeowners that their homes are not money trees. Before the recession hit Americans had become used to using their homes for remortgages, second mortgages and accessing home equity loans, all for the purpose of upholding the standard of living to which they aspired. Every time housing prices rose [...]
Last week the Department of Housing and Urban Development released its long-awaited list of changes for Reverse Mortgage applicants. The drive for these modifications was propelled by last year’s annual actuarial report which showed that the FHA’s Mutual Mortgage Fund, which insures Home Equity Insurance Mortgages, had a negative economic value of 16.3 billion. The [...]
Recent changes in the Reverse Mortgage industry have been favorably received by lending institutions, Congress and the Federal Housing Administration but senior advocates are expressing disappointment over the process by which these changes are taking place.
Since the final quarter of the fiscal year 2012, when a 16 billion dollar shortfall was identified in the FHA’s [...]
The image of a Reverse Mortgage borrower is often that of a senior citizen who is living on a tight budget and looking for some additional disposable income but in point of fact, the Reverse Mortgage can be a part of any senior citizen’s financial planning strategy.
According to the Department of Housing and Urban Development [...]
When Congress and the Department of Housing and Urban Development began to discuss changes to the Reverse Mortgage product in late 2012, observers worried that the changes would weaken the program. In point of fact the opposite has proven true. Due to increased government regulations and involvement, Home Equity Conversion Mortgages (HECMs) have become an [...]
On Friday August 9th President Barack Obama signed the Reverse Mortgage Stability Act into law. This act is a bipartisan measure that is designed to protect the financial options for American seniors. The legislation authorizes the Secretary of Housing and Urban Development (HUD) to establish whichever requirements are needed to protect the Home Equity Conversion [...]
In a surprising show of unity Republicans and Democrats and members of both Houses of Congress joined together to pass a bill that stands to benefit senior homeowners. The bill had been previously approved by the House of Representatives and this week the Senate voted overwhelmingly to pass the legislation that will tighten the Home [...]
The Department of Housing and Urban Development has indicated that the Reverse Mortgage product is set to undergo significant changes in the coming months. These changes, the HUD believes, will shore up the Home Equity Conversion Mortgage (HECM) program and allow it to continue to provide seniors with an opportunity to access the equity that [...]
A reverse mortgage is most effective when it is used as a line of credit that allows retirees to meet their immediate needs, such as home renovations, while enabling them to preserve the balance as a nest egg in case of emergencies.
In the past many seniors have used the HECM (Home Equity Conversion Mortgage) product [...]