Reverse Mortgage Counseling Agencies Receive Funding

The Senate just recently passed a $1.1 trillion spending bill that will make way for housing counseling funding, including reverse mortgage counseling.  The bill did not specify the exact amount that will be allocated to reverse mortgage counseling, however the overall total amount of $47 million allocated to housing counseling is $2 million more than what was allocated for 2014.  This should allow some agencies to offer "free" reverse mortgage counseling services, so homeowners should check with different agencies.  

Reverse Mortgages 2014 In Review

The year 2014 saw many changes for the reverse mortgage industry, which for some is nothing new.  Over the past several years, the industry has gone through its fair share of changes.  Reverse Mortgage Daily compiled its 10 most read articles of 2014 ranging from the exit of Generation Mortgage to the new Non-Borrowing Spouse regulation.  Bring yourself up to speed and click here to read all the stories that impacted reverse mortgages during the year.

Financial Assessment Impact on Reverse Mortgage Lenders

The Department of Housing and Urban Development (HUD) announced last week the implementation of the Financial Assessment for the Home Equity Conversion Mortgage (HECM).  The reverse mortgage industry as a whole welcomes the new guideline to ensure the strength of the program in the long run and added protection for our senior consumers.  The financial assessment is aimed at providing accountability both for borrowers and lenders.  Lenders will be required to closely analyze a borrower's capability to afford and comply with reverse mortgage requirements, such as paying for property taxes and homeowner's insurance.  Some lenders are concerned that loan volume may decrease beginning in March 2, 2015 due to the change keeping some seniors from qualifying.  However, the industry is still working out how the language and criteria of the new rule will affect the lending process, so stay tuned for more information coming soon.

Breaking News: Reverse Mortgage Financial Assessment to Take Effect March 2015

HUD issued Mortgagee Letter 2014-22 on November 10, 2014, signaling the confirmation of the long anticipated Home Equity Conversion Mortgage (HECM) Financial Assessment and Property Charge Requirements.  The financial assessment requirements will be effective for all case numbers issued on or after March 2, 2015.  The purpose of the new requirements is to evaluate the mortgagor's (borrower) willingness and capacity to timely meet his or her financial obligations and to comply with the mortgage requirements.  The mortgagee (lender) must also consider to what extent the proceeds of the HECM could provide a solution to any financial difficulties the borrower may be currently having.  The borrower's income and credit history will be reviewed with the possibility of establishing an escrow account from the reverse mortgage proceeds to pay for future property tax and homeowner's insurance premiums.  Stay tuned for additional information as it becomes available.  

Love ‘em, hate ‘em, reverse mortgages are staying

A recent article in the El Paso Inc gives an insight to how the perception of reverse mortgages has changed.  More and more homeowners and professionals are learning that a reverse mortgage has been a good product all along, but they just hadn't realized that until recently.  Click on the link to read the entire article:

Love ‘em, hate ‘em, reverse mortgages are staying - Personal Finance - El Paso Inc.



And click here to learn more about reverse mortgages.

MarketWatch Says Reverse Mortgages Better Than HELOCs for Some

According to MarketWatch, a reverse mortgage may be a better alternative for some when compared to a home equity line of credit (HELOC).  The article provides three options on how to access one's home equity:  reverse mortgages, HELOCs and home equity loans.  The only option that does not require a monthly payment is a reverse mortgage, and the article cautions readers to consider the risk of losing your home if you can't make the payment.  Read the entire article here.  And find out more about reverse mortgages here.

Kiplinger Says a Reverse Mortgage Can Help Buy a Home

A recent article in Kiplinger supports the HECM for Purchase program (aka Reverse Mortgage Purchase program) as a way for senior homeowners to buy a new home without having a mortgage payment during retirement.  The article provides real life examples of couples who used the HECM for Purchase program to qualify for a more desirable home.  Many seniors are looking to either downsize to a smaller home or upsize to a nicer home.  In some cases, some are wanting to move to warmer climate areas or to be closer to their families.  This program can provide many seniors the ability to make a move that they never imagined they could.  Read the entire article here.
And find out more about reverse mortgages here.

Retiring With A Reverse Mortgage

A reverse mortgage is becoming more widely accepted as a retirement planning tool.  Recently, the mainstream media has been publishing more news articles in relation to reverse mortgages being a viable option for retirement.  For many senior homeowners, their home is their greatest asset in which a reverse mortgage can help them utilize that asset.  The online resource, Investopedia, just published an article titled "Steps To Retiring With A Reverse Mortgage".  It offers advice and tips on how to retire with a reverse mortgage.  Read the entire article by clicking here.

CFPB Updates Their Reverse Mortgage Guide

The Consumer Financial Protection Bureau (CFPB) updated their reverse mortgage guide on September 24th.  It highlights the new limits to lump sum payouts, first-year payouts, and HUD's new protections for non-borrowing spouses.  Read and download the entire guide by clicking here.

The Mortgage Hurdle To Retirement

More and more homeowners are carrying a mortgage debt, which is affecting retirement and spending for baby boomers.  As of 2011, nearly one-third of homeowners over the age of 65 had a mortgage compared to 22% in 2001 according to the Consumer Protection Bureau.  The LA Times recently published an article titled, "Many Seniors Trying to Retire With a Mortgage", and it gives real life scenarios of two separate baby boomers who used a reverse mortgage to help finance their retirement.  Read the entire article here.

No Longer a Seller's Market

It seems like there is a shift in the market, again.  Redfin's July 2014 Housing Market report states that, "seller's are finally catching on that it's not a seller's market anymore."  The result is from a slowdown in home price growth as well as a shift in pricing power from sellers to a more balanced market.  The ending of summer and start of fall will also motivate sellers to drop their listing prices further in attempt to sell before the end of the year holidays.  Read the entire report here.

Financial Planners Should Recommend Reverse Mortgages

A recent article in Financial Planning suggests that financial planners should consider recommending reverse mortgages for elderly clients and for the parents of middle-aged clients.  Jim Kinney from Financial Pathway Advisors tells Financial Planning that "Reverse mortgages can be a very useful tool for seniors who plan to stay in the home for a long time."  He goes on to say that "For seniors who are short on liquid funds for an emergency, the HECM (home equity conversion mortgage) line of credit can be a lifesaver."  Click here to gain access to the article.

Harvard Study Suggests Reverse Mortgages Can Help

On September 2nd, 2014, a report was released by the Harvard Joint Center for Housing Studies and the AARP Foundation.  The executive chairman, Henry Cisneros, stated, "We have a big problem....Many aging Americans don't have personal savings, and governmental budgets are strapped."  The study goes on to say that reverse mortgages can offer financial security for those whom are eligible.  It adds that a reverse mortgage can provide much needed income for those who have most of their wealth in home equity.  The entire report is available by clicking here.

AAG to Roll Out New Reverse Mortgage Product

On the heels of Urban Financial announcing their new "HomeSafe" product, AAG has announced that they too will be unveiling a new private reverse mortgage product in the next 2 months.  Stay tuned for more changes to come to the reverse mortgage industry.

America Plauged With Lack of Retirement

An article recently published by Brookings, points to the issue of America spending away their retirement.  A sound retirement will have adequate savings and spending  to meet our increasing demands and the unforeseen  hurdles we will come across. Read the entire article here.
The article mentions reverse mortgages as a viable retirement tool.

Contact ReverseMortgageBenefit.com for all related reverse mortgage questions.

Weigh Your Options Before Buying Your In-Laws' Home

A reader of the LA Times asked the question whether he and his wife should buy their in-laws home or suggest they obtain a reverse mortgage.  As the reader indicates, his in-laws have gone through their retirement fund and soon won't be able to pay their mortgage.  They still have a substantial amount of equity in their home, but they would rather stay in their home than sell.  If the children take over the mortgage and property, they run the risk of over-extending themselves financially and possibly seeing themselves face similar financial difficulties.  A reverse mortgage may be the best solution in this case since the in-laws want to remain living in their homes.  Though the reverse mortgage will not completely eliminate all their home costs, such as property taxes, homeowner's insurance and maintenance, it will eliminate the large mortgage payment each month which will help free up much needed cash.  In addition, they may also qualify to receive cash-out proceeds which can help secure their retirement.

Contact ReverseMortgageBenefit.com to determine if your specific situation would be best suited for a reverse mortgage.

Breaking News: New Private Insured Reverse Mortgage

Just announced on August 19th, 2014....the Reverse Mortgage industry will soon have more options to help more homeowners.  Up to this point, 95% of reverse mortgages originated today are under FHA's HECM program.  HECM's (Home Equity Conversion Mortgage) are insured by HUD and most follow HUD guidelines.  As a result, there are certain property types and scenarios that are unable to qualify for a FHA reverse mortgage.  A proprietary reverse mortgage can now allow for financing on non-FHA approved condos, will allow seller concessions on reverse mortgage purchases, and provide greater flexibility for high values homes.  Urban Financial of America is the first investor who will be offering a private reverse mortgage which will be called the HomeSafe Reverse Mortgage.

Send your questions and scenarios to ReverseMortgageBenefit.com and we will be sure to put you in touch with a lender who can meet your needs including the HomeSafe product.

Texas and Non-Borrowing Spouses

As of August 8th 2014, the state of Texas is not allowing the new HUD rules on Non-Borrowing Spouses (NBS) regarding reverse mortgages.  The good news is that the spouse issue is not a constitutional issue and is expected to be resolved in the next month or two.  The National Reverse Mortgage Lenders Association (NRMLA) is currently working with HUD to amend Texas loan documents to allow for the implementation of the new NBS rules.  We will keep you posted as developments unfold.

Reverse Mortgage Principal Limit Changes

Beginning August 4, 2014, FHA will make changes to the principal limit factors (PLF) for FHA Reverse Mortgages, also known as HECM's.  The principal limit is the loan amount available based on a property's value minus closing costs and any existing liens.  The PLF will increase the qualifying percentages for the majority of reverse mortgage borrowers.  This is great news for the reverse mortgage industry and homeowners over the age of 62.

Reverse Mortgages Are Aimed To Boom

The FHA reverse mortgage program has been recently strengthened more than ever to attract Baby Boomers looking for additional sources of income to fund their retirements.  Recent government regulations have been modified to further protect senior borrowers from issues such as leaving a spouse unprotected and ensuring borrowers have sufficient assets to pay for property taxes and homeowner's insurance.  According to CBSNEWS, "The reverse mortgage is going to be a lifeline for millions of retirees in the years to come."  Read the entire article here.

Technology Helping Seniors Age in Place

Researchers are testing new ways to prevent elderly people from injuring themselves at home. The Wall Street Journal published an article discussing the importance for engineers and health experts to use technology to help seniors avoid falls and reach help quicker.  Though the costs of using technology obviously needs to be made affordable, the offset is to keep seniors living in their homes for a longer period of time and avoid higher assisted-care living expenses.  Read the entire article here.

Health Care Costs For Retired Couple

Fidelity Benefits Consulting published a recent article stating that, based on their estimate, a 65 year-old couple retiring this year will need an average of $220,000 to cover medical expenses throughout retirement. That figure is down from their 2010 figure which was $250,000.  As stated, health care continues to be one of America's largest expenses in retirement.  Fidelity suggests to consider opening a health savings account (HSAs) which allow individuals to pay for qualified medical expenses on a federal tax-free basis.  Read the entire article here.

Are Baby Boomers Downsizing?

Fannie Mae issued a recent article detailing that so far Baby Boomers have shown little sign in selling their homes to downsize or relocate.  Is it just a matter of time before they move or is it that they are still waiting for the housing market to peak?  Or could it be, as AARP found out in a survey in 2010, that nearly nine in ten Baby Boomers prefer to remain in the current residences for as long as possible?  The Fannie Mae article suggests that the inevitable will be that a large enough amount of Baby Boomers will end up relocating and causing quite a stir in the housing market.  Read the entire article here.

Housing Price Growth Slows Down, But Still Above Norm

A recent study by Trulia shows that home prices increased from May 2013 to May 2014 by 8% which was a slow down from previous months. Markets in Las Vegas and Sacramento which increased over 20% from May 2012 to May 2013, both increased at a 15% rate this past May.  The largest increase this Spring was Riverside-San Bernardino, CA at 18.8%.   Click here to see the entire Trulia analysis.

This is a perfect opportunity for senior homeowners to take advantage of the real estate market and utilize a reverse mortgage to secure their equity.  Click here to learn more about reverse mortgages.

Reverse Mortgage Non Borrowing Spouse Changes

The Department of Housing and Urban Development (HUD) has made changes to non borrowing spouse requirements to allow the surviving spouse to defer the repayment of their spouse's reverse mortgage if they should pass away or need to move away.   In addition, this will allow a spouse who is not 62 at the time of acquiring a reverse mortgage to be included at inception.  HUD is in the process of releasing new loan tables for younger spouses under the age of 62.  This change will allow more reverse mortgage couples to qualify as well as provide equal protection for both spouses.  HUD's mortgagee letter can be viewed at:  http://portal.hud.gov/hudportal/documents/huddoc?id=14-07ml.pdf

For more information on reverse mortgages:   www.reversemortgagebenefit.com

Reverse Mortgage For Purchase In Texas

Lenders are beginning to offer the HECM Purchase program in Texas.  Previously, the state of Texas did not allow these transactions due to homestead laws.  Texas is currently the 2nd largest producing state of HECM loans, so this program should be well received by Texans.  The HECM Purchase program (a.k.a. Reverse Mortgage Purchase program) allows a homebuyer over the age of 62 to use a reverse mortgage to cover approximately 50% of the purchase price, in which they will never be required to make a payment for as long as they live in the home.  By using the HECM Purchase program, a homebuyer can leverage themselves to buy a home they desire while still maintaining assets for retirement.  Instead of completely paying cash for a property, use this program to help increase cash flow and add security to your retirement.

Find out more at:
www.reversemortgagebenefit.com

Refinancing An Existing Reverse Mortgage

Have you heard about a reverse mortgage?  Do you know how it works?  Well, did you know that you can refinance your existing reverse mortgage?  Most people are not aware that you can refinance your existing reverse mortgage to obtain additional cash.  Due to FHA's lending limit increases as well as increases to property values in the last year, many FHA reverse mortgage holders can qualify to obtain more cash from their home's equity.  The cash is not taxable and can be used for any purpose at all.  More importantly, the cash can be secured by the homeowner before the reverse mortgage loan increases to a level where the cash is no longer available.

Find out more about reverse mortgages at:
www.reversemortgagebenefit.com

Reverse Mortgages Tighten Rules For The Better

Reverse Mortgages continue to go through changes to strengthen the program for the future and to further protect senior homeowners. The Wall Street Journal posted a recent article pointing to this.

Workers Not Very Confident About Retirement

In a recent interview of workers conducted by the Employee Benefit Research Institute, 37% say they are "somewhat confident" and 18% say they are "very confident".  In addition, of those interviewed, 36% said that they have less than $1,000 in savings.  As far as the ability to afford long-term care, more than 3 in 10 are "not at all" confident in their ability to afford long-term care expenses in retirement.

Senior Home Equity On the Rise

According to the latest Reverse Mortgage Market Index (RMMI), Senior homeowner equity reported a $83.5 billion surge in the fourth quarter of 2013 and the seventh consecutive quarter where the RMMI has risen.  That is good news for the senior homeowner looking to tap into their equity by way of a reverse mortgage.

What Heirs Should Know About Reverse Mortgages

Kiplinger recently published an article that gives advice to the heirs of a reverse mortgage borrower.  The heirs should be aware that they are to contact the reverse mortgage lender immediately once the last reverse mortgage borrower has died.  This will be in favor of the heirs because the clock begins ticking on the date of death, which is the amount of time given to the heirs to make a decision on whether they want to keep the house, sell it or turn over the keys to the lender.  Another important thing to note is that the amount that's due to the lender is the lessor of the reverse mortgage balance or 95% of the appraised.  If there is no equity left in the home, then the beneficiary can simply turn over the keys to the lender without any recourse: that means the lender cannot go after the estate or the beneficiaries' assets for payment.

Learn more about this topic and other reverse mortgage topics at www.reversemortgagebenefit.com.

Senate Examines Pending Retirement Crisis

Middle-class Americans have virtually no savings in their retirement accounts due to financial crisis and economic recession that we have seen in recent years.  The deterioration of 401(k) plans and IRAs coupled with the uncertainty of Social Security has more Americans looking for additional sources of income.  The Senate stated that during the stock market plunge of 2008 and 2009, those retirement accounts lost a total of $2 trillion in value.
The financial planning community is advising that Reverse Mortgages by included as part of one's retirement plan.  Reverse Mortgages are recently being looked at as an option to fulfill the income lost from the deterioration of other retirement assets.

For more information on how reverse mortgages may solve retirement problems, visit www.reversemortgagebenefit.com.

Reverse Mortgages As A Retirement Alternative

The Journal of Financial Planning recently published a detailed article on the baby boomer economy and retirement trends.  As stated, there is a need in our economy to have alternative sources of retirement income for those who are retired, close to retirement and even those who are planning to retire in the next 30 to 40 years.  Study shows that a person's home stores about two-thirds of their wealth, which means that one's home will grow in importance in relation to their retirement portfolio.  A reverse mortgage works by tapping into the home asset to provide cash to help supplement retirement.

Learn more about how to use a reverse mortgage for retirement planning by visiting:
www.reversemortgagebenefit.com

Reverse Mortgages Can Help Avoid Taxes

Reverse Mortgages are being utilized more than ever to supplement one's retirement income. Homeowners and financial planners are using a reverse mortgage to help stave off taxes, as indicated in a recent article in the Herald and News.  Reverse mortgages can be a much better option than taking money out of one's 401(k) and being taxed at likely rates of about 28 percent for federal and 9 percent for state. Since there is no tax on reverse mortgage proceeds, this option can help pay the least amount of taxes over the long term. And, keeping the money in the 401(k) will continue to earn interest which will offset the interest of the reverse mortgage loan.  Read more at HeraldandNews.com.

Reverse Mortgages and Retirement Planning

Reverse mortgages are being considered more and more as a financial retirement tool for senior homeowners.  The financial planning community has realized the potential of using the equity in one's home by way of a reverse mortgage to help fund retirement.  There are certain reverse mortgage payment plans that work better to meet the needs of those who are not necessarily in immediate need of money but rather are looking for ways to extend their assets to last their lifetime.

InvestmentNews recently published an article discussing the new uses of a reverse mortgage for financial planning, and various other individuals have published similar articles.

For more information on reverse mortgages and to be put in touch with a reputable reverse mortgage lender, visit our website at:  www.reversemortgagebenefit.com.

ReverseMortgageBenefit
www.reversemortgagebenefit.com
info@reversemortgagebenefit.com

New Reverse Mortgage Products

There have been more reverse mortgage products introduced in the last few months than the industry has seen in quite some time.  The latest announcement is a fixed rate product that provides the most flexible payment plans without limitations on how much money can be withdrawn in the first year.

Contact us to learn more about reverse mortgages and to be referred to one of the top reverse mortgage lenders in the industry.

Learn more about reverse mortgages at HUD's website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmhome

Also, learn about the Top Ten Frequently Asked Questions: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/rmtopten

Learn about the recent product announcement: http://reversemortgagedaily.com/2014/02/18/live-well-releases-fixed-freedom-reverse-mortgage-product/?utm_source=Reverse+Mortgage+Daily&utm_campaign=c32d0e29c3-RMD_Daily_Email_2_20_142_19_2014&utm_medium=email&utm_term=0_48b4357284-c32d0e29c3-21285 


ReverseMortgageBenefit.com
info@reversemortgagebenefit.com

Housing Recovery Back to Normal

The housing market continues on its road to recovery, as now one in six metro areas nationwide have either returned to or exceeded their previous norms and the national market edges 86% back to normal, according to the National Association of Home Builders (NAHB).  According to David Crowe, Forty-five percent of metro areas are recovering at a faster pace than the nation as a whole.  This is continued good news for the national housing market.  Read the entire article at:  http://www.nahb.org/news_details.aspx?sectionID=2694&newsID=16608

Is a Reverse Mortgage Right for You? - Webster County Citizen: News

Is a Reverse Mortgage Right for You? - Webster County Citizen: News

Reverse Mortgage Guideline Changes

The Department of Housing and Urban Development plans on publishing a Mortgagee Letter to provide guidelines on two separate policies.  The first addresses the non-borrowing spouse issue which will allow a spouse under the age of 62 to be placed on the reverse mortgage loan.  The second policy change will deal with financial assessment to help strengthen the program and protect borrowers.  The Mortgagee Letter is expected to be published in mid-February with an implementation 90 days after it is issued.

For up to date information on reverse mortgages, send a request to be contacted by a top reverse mortgage lender.  Visit:  www.reversemortgagebenefit.com.

ReverseMortgageBenefit.com
info@reversemortgagebenefit.com
www.reversemortgagebenefit.com

December Existing Home Sales Rise

The National Association of Realtors (NAR) recently announced that existing homes sales edged up in December 2013 and sales for all of 2013 were the highest since 2006.  The national median existing home price for all of 2013 was $197,100, which is 11.5 percent above the 2012 median of $176,800.  The continual increase in home sales should continue to drive home prices and home equity across the nation. Click on the link to read the entire article from NAR:  http://www.realtor.org/news-releases/2014/01/december-existing-home-sales-rise-2013-strongest-in-seven-years

The increase in home equity will allow more and more senior homeowners to qualify for a reverse mortgage and obtain more assets to help fund their retirement.  We expect to see an increase in reverse mortgage activity this year with more seniors inquiring about the program.  Let us provide you with valuable information on reverse mortgages to help you analyze your retirement options.  Visit:  www.reversemortgagebenefit.com to learn more.

Yours Truly,
ReverseMortgageBenefit.com
www.reversemortgagebenefit.com
info@reversemortgagebenefit.com

Reverse Mortgage Safeguards Vol.1

The vast majority of reverse mortgages today are federally insured by HUD.  This provides protection for both homeowners as well as lenders.  One protection for homeowners is they are guaranteed that the reverse mortgage program will always be made available to them once they have entered the program.  Lenders, on the other hand, are guaranteed that they will always receive the balance owed.  This is just one example of how the reverse mortgage program provides safeguards for both the consumer and lender.  In the coming series, Reverse Mortgage Safeguards, we will explore other areas of protection for consumers, lenders and the community.  Visit us at www.reversemortgagebenefit.com to learn more about reverse mortgages and send us a request to be put in touch with a reverse mortgage lender.

Reverse Mortgage Benefit

Reverse Mortgage Benefit is committed to being a resource for anyone interested in reverse mortgages.  We are an industry leader in providing accurate and timely information, as well as putting consumers in touch with top reverse mortgage lenders.  Visit us at www.reversemortgagebenefit.com to learn more about reverse mortgages and send us a request to be put in touch with a reverse mortgage lender.

New Reverse Mortgage Product

A new fixed rate reverse mortgage product has been announced by a few select lenders.  The new option allows for the additional principal limit amount to be utilized after the first year.  Previously, borrowers who chose a fixed rate reverse mortgage were unable to tap into any additional principal limit amounts that might have been available after paying off required liens and closing costs.  This made the fixed rate option less desirable for many, but this new product will give consumers more reason to opt for a fixed rate over an adjustable rate.
For more information on reverse mortgages, visit www.reversemortgagebenefit.com.