Reverse Mortgage Program Changes

The reverse mortgage industry has gone through many changes over the last 2 years as directed by The Department of Housing and Urban Development (HUD).  The most recent change has been the implementation of the financial assessment, which has been aimed to strengthen the HECM (Home Equity Conversion Mortgage) program for the future.  HUD will now begin to evaluate the effects of all those changes to see whether those changes are working.  Reverse Mortgage Daily published a recent article which includes comments from HUD on the progress that has been made thus far.  Read the article here.

Reverse Mortgage Consumers on Mobile Applications

A recent survey from the Pew Research Center states that about 60 percent of Americans who are 65 or older report online use and 77 percent have cell phones.  This is a strong increase from just a few years ago, and is gaining the attention of the mortgage industry to make their websites and information compatible on mobile devices.  The reverse mortgage industry has also been paying close attention with more companies gearing their efforts to online marketing.  Check out www.reversemortgagebenefit.com from your mobile device to see how we have made it easier to obtain information from our site.

Reverse Mortgage and President Obama?

President Obama was speaking before attendees at the 2015 Gridiron Club Dinner in Washington, D.C. Saturday night in which he made a remark on reverse mortgages.  In the satirical spirit of the event, he said, "Now, let's face it, being President does age you.  I mean look at me.  I was hoping Fred Thompson would be the Republican speaker so I could buy a reverse mortgage."  Read the entire transcript here.

New Date Set for Financial Assessment

HUD announced on February 26, 2015 that the Financial Assessment guideline will now take effect on April 27, 2015.  HUD issued Mortgagee Letter 2015-06 confirming that Financial Assessment will be effective for all case numbers issued on or after April 27, 2015.  Click here  to read the entire mortgagee letter.

Urban Makes Changes to HomeSafe Jumbo Reverse Mortgage

Urban Financial of America has announced changes to its HomeSafe program.  The program has expanded to include availability to an additional state (Illinois) and has improved its loan-to-value ratio.  At the moment, the HomeSafe program is also available to the following states:  California, Florida, Hawaii, New Jersey, Texas, Colorado, Arizona.  This program was created for higher valued properties as well as non-FHA approved condos, in which the HECM program does not allow.

Reverse Mortgages Mandatory for Some Australians?

A recent report released by Per Capita states that a reverse mortgage should be mandatory for certain Australians who need care later in life.  Australia is experiencing their own need for increased senior care due to a growing aging population, similarly to the United States.  The report titled, "The Head, The Heart and The House," provides an overall examination of Australia's housing policies as it relates to seniors.  Click here to read the full report.

Financial Assistance for CA Seniors with Reverse Mortgages

There is a new program in California for low - and moderate-income seniors that will provide them assistance to help avoid foreclosure.  The Reverse Mortgage Assistance Pilot Program, organized by Keep Your Home California, will help eligible seniors with delinquent property taxes and homeowner's insurance expenses.  It is expected to benefit around 1,400 homeowners who have a Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage.  Read more about the new program here.

FHA Delays Reverse Mortgage Financial Assessment Date

The Federal Housing Administration (FHA) just announced that they will delay implementing the reverse mortgage financial assessment guideline that was set to become effective in less than three weeks.  FHA is citing technical difficulties as the reason and expects the new effective date to be within 30 to 60 days of the previous March 2nd target date.  FHA announced on Feb. 12th that they will be publishing a new Mortgagee Letter that will outline the new date at which point the financial assessment will turn mandatory.  Stay tuned and visit www.reversemortgagebenefit.com for more information.

HUD Budget Shows Reverse Mortgage Program Back on Track

The Federal Government believes FHA and the reverse mortgage program have regained some financial footing. The agency is requesting an increase of nearly $4 billion over current funding levels showing their continued support towards the program.  Read more here.

The Future of Retirement Looks Bleak For Many

A new study from HSBC finds that the majority of working age people have major concerns regarding their retirement.  The leading concern is existing mortgage payments and the strain it puts on finances.  The study states that 34% of working age people doubt that they will be able to maintain a comfortable standard of living in retirement and 69% are worried about running out of money.  Paying off a mortgage is one of the key reasons people are not preparing adequately for a comfortable retirement.  Though it was not mentioned, a reverse mortgage can provide the solution in this case.  Read more here.

HUD Says Reverse Mortgages Are a Good Option

The Secretary of the Department of Housing and Urban Development (HUD), Julian Castro, recently stated that the Home Equity Conversion Mortgage (HECM) can provide a boost in retirement for aging Americans in certain situations.  According to Castro, "While the loan doesn't fit for everyone, it can be a good option for those in the right circumstances trying to make it through retirement."  Zillow's Chief Economist, Stan Humphries, also added that a reverse mortgage can help older Americans age in place.  This was all part to an audience question during a fireside chat on January 21, 2015.  Read more here.