Currently viewing the tag: "reverse mortgage lender"

Reverse Mortgages for the Elderly

By On August 10, 2011

Are you age 62 or older? If so, many reverse mortgage journalists believe you may be elderly. In fact it is common to read articles about reverse mortgages, the fraud and scams related to reverse mortgages and the elderly borrowers who are the victims. I have been originating reverse mortgages for over ten years now and can’t remember the last “elderly” borrower I had the pleasure of meeting. I would not be opposed to offering to protect anyone who may need a little extra protection but to throw a blanket over the entire industry and refer to the customers as elderly is wrong.

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Reverse Mortgage Borrower Assessment Explained

By On August 3, 2011

The implementation of a financial assessment tool is now imminent for reverse mortgage applications.

After Wells Fargo recently exited the business, citing borrower tax defaults as a major reason, the issue has been front and center for industry execs.

There is talk about a uniform 50% debt to income ratio being applied to all new reverse mortgage applications. Debt to income ratios would be assessed after the benefit of the reverse mortgage proceeds were taken into account. Your monthly scenario could look somthing like the following.

Before the reverse mortgage:

$1000  mortgage payment (including taxes and insurance)

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Fragile Housing Market Cannot Handle Imminent Lower Loan Limits

By On July 31, 2011

National Reverse Mortgage Lenders Association Co-Signs Letter Request for Loan Limit Extension

The letter, seeking a one-year extension of current FHA mortgage loan limits, was written by several trade associations and points out the ”tight underwriting already constraining mortgage availability.”

Current FHA lending limits are set to adjust back to normal on September 30 of this year after having an upward adjustment that allowed borrowers to get more money out of thier refinances, pay off higher mortgages and purchase more expensive homes. The upward adjustment has greatly benefitted all of the 11 organizationa that signed the letter as well as the stalling econimic recovery.

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Reverse Mortgage Purchase Popularity Gains

By On March 8, 2011

It has been quite some time since the FHA (HUD) started insuring reverse mortgage purchase loans, however the program never really took off. Much to my surprise, even some of the more sophisticated buyers were not using reverse mortgages to buy homes. I have always promoted reverse mortgage home purchase scenarios to borrowers but to no avail. Few of them could see the absolute sense this type of transaction makes.

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Reverse Mortgages for Free and Clear Homes

By On October 26, 2010

Reverse Mortgage with Credit Line Feature

With all of the changes in reverse mortgages these days, it pays to review your options again, if you are in the process of applying for one. The most popular program today is the fixed interest rate, lump sum pay-out program due to the amount of funds available to the borrower usually being greater with this option. It’s no secret that most home owners will want to get the most money available these days and probably because they need to pay off an existing mortgage but what if your home is free and clear of any mortgages? The other option is an adjustable interest rate reverse mortgage or the lower paying HECM Saver. Again, most borrowers might want to gravitate to the peace of mind that comes with a fixed interest rate but what if the rate on your loan was tied to the amount of funds available for future payments to you? In this case, you might get an unexpected bonus if and when interest rates rise. That is exactly what happens when you choose the adjustable interest rate option on your reverse mortgage.

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