Archive for the ‘Reverse Mortgages’ Category

What Every Retiree Should Know

Millions of retirees face financial challenges as they try to make ends meet when their income drops. For many seniors, the equity they have in their home is their largest untapped asset, yet they don’t want to make the dramatic decision to sell their family home in order to access the equity that they’ve built [...]

The Department of Housing and Urban Development (HUD) announced that it is delaying implementation of the long-heralded Financial Assessment rule. This announcement comes just weeks before the new rule was scheduled to take place.
HUD cited a delay in the delivery of “certain system enhancements” that were required to support the policies which had been published [...]

House Democrats are Calling for Expanded Reverse Mortgage Protections

A group of 17 Congressional Democrats sent a letter to Department of Housing and Urban Development Secretary Julian Castro, calling for more foreclosure protections for Home Equity Conversion Mortgage borrowers’ spouses.
Their letter was prompted by a group of surviving spouses, whose names were not on the titles when their partners acquired HECM loans under the [...]

Reverse Mortgages as Income Supplements for Seniors

Homeowners over the age of 62 who have built up a equity in their home and wish to stay can tap into their home’s equity with a reverse mortgage.
This type of mortgage has become a popular way for seniors to fund their retirement. In 2013 Reverse Mortgage loans totaled $15.3 billion dollars, an increase of [...]

Standby Line of Credit - Hidden Value of a Reverse Mortgage

Over the past few months the Journal of Financial Planning has published several articles which take a look at how retirement income can be enhanced by opening a standby line of credit through a reverse mortgage and using this line strategically.
According to current HECM rules, homeowners can earn additional funds if the line of credit [...]

Avoid Reverse Mortgage Surprises

Reverse Mortgage offer benefits to seniors who can access the equity that they have in their home for extra income. What happens if the borrower dies, leaving a non-borrowing spouse? Lending institutions often have to help the surviving spouse navigate the bureaucratic fallout that occurs when the borrowing spouse dies. If the surviving partner is [...]

Considering a Reverse Mortgage – Pros and Cons

Over the past decade, you might have seen reverse mortgages marketed as an easy way for seniors to cash in their home equity to pay for day-to-day living expenses. However, you should be aware that many borrowers have learned that obtaining a Reverse Mortgage without the proper consideration has led to significant financial problems down [...]

Reverse Mortgage Lenders Encounter Good News Along with New Challenges

Home Equity Conversion Mortgages increased 12 percent during December 2014 over the previous month. This put HECM endorsements at the highest level during any single month since February 2014.
This is good news for Reverse Mortgage lenders who have been waiting to see how the HUD’s recent changes to the Reverse mortgage product will impact on [...]

Preparing for Retirement with a Reverse Mortgage

In the past, most senior citizens had finished paying for their mortgage by the time that they reached retirement age. In today’s mobile society, where individuals and couples relocate frequently throughout their lifetimes, it’s not uncommon for retirees to have mortgages when they reach their 60s. For many seniors, this puts a strain on their [...]

Downsizing Your Home Without Downsizing your Pocketbook

When Gayle and Arthur Zamchuck started thinking about refinancing the mortgage on their home in Evanston IL, they assumed that they’d need to refinance in order to finance a move to a smaller home. But after speaking with a reverse-mortgage adviser the couple discovered that if they took a home-equity conversion mortgage (HECM For Purchase), [...]

New Rules for a more Viable Reverse Mortgage Product

Financial advisers have been reviewing the new regulation changes to federal reverse mortgages. The changes, the latest in an itinerary of revisions that have taken place over the past two years, are transforming Reverse Mortgages from a “loan of last resort” to a viable financial planning tool.
Advisers note that these key changes are paving the [...]

Using your Resource to Increase Home as a your Retirement Income

If you speak to a financial adviser about ways to increase your retirement income, s/he’ll probably tell you to start by reviewing your available resources and thinking of creative ways that you can maximize those resources.
For most retirees, their most valuable resource is their home. By retirement age, a person’s home is generally completely or [...]

FAQs from the Consumer Finance Protection Bureau

To meet the upsurge in interest in Reverse Mortgages, the Consumer Finance Protection Bureau has put together a new online resource to answer some of the most frequently asked questions about the Home Equity Conversion Mortgage product.
There are numerous topics, but some of the highlights of the booklet include questions about the suitability of a [...]

Where are Reverse Mortgages Heading?

Based on projections for the coming year, financial planners see Reverse Mortgages heading upwards. Over the past few years numerous changes have been made in the Home Equity Conversion Mortgage structure to strengthen the product and make it a safer loan for borrowers, lenders and the Federal government. Standards have been toughened and are continuing [...]

Home-Equity Loan or Reverse Mortgage?

If you are a homeowner you may be considering ways in which you can convert your home equity into cash. You may need the funds to pay for living expenses, healthcare costs, a home remodeling job or other necessities or you may just want to use some of the equity that you’ve built up over [...]

HUD issues 2014 HECM Assessment Report

The Department of Housing and Urban Development (HUD) has issued a financial assessment for the Home Equity Conversion Mortgage (HECM) program. The November 2014 report has been anticipated for several months and ensures that the assessment criteria for Reverse Mortgage borrowers will be uniform for all HECM case numbers issued on or after March 2, [...]

Updated reverse mortgage guide: New Information

On September 24, the Consumer Financial Protection Bureau (CFPB) published an updated reverse mortgage guide on its blog which explains recent changes in the HUD Reverse Mortgage program. The post highlights the new limits on the first-year Reverse Mortgage payouts as well as HUD’s new protections for non-borrowing spouses.
In the Updated Reverse Mortgage Guide: Two [...]

New Reverse Mortgage: What you Need to Know

As the effects of the 2008 recession continue to impact on retirees’ income, more and more senior homeowners are considering their options. Tapping into home equity is one such alternative and that option is an attractive one for people approaching or already at retirement age.
There are limited possibilities to enable an individual to access his [...]

Reverse Mortgage Counseling Saves Senior Americans Significant Sums

Reverse Mortgage counseling agencies are expanding their activities as Reverse Mortgages become gain in strength in the mortgage industry. Following numerous changes which have been introduced over the past 2 years, counseling agencies are reporting seeing a rising number of counseling sessions this year.
According to a recent study for NeighborWorks America by the Urban Institute, [...]

The New Reverse Mortgage

New Reverse Mortgage applicants are encountering a new term when they go to speak to their loan representative – the “New Reverse Mortgage.” Consumers are tired about hearing products referred to as the “new this-or-that” every time a small change is made, but in the case of the Reverse Mortgage, the term is accurate – [...]