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 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.

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.

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.

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.

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.

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.

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.