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.

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.

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.

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.

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.