Volume of the FHA’s Home Equity Conversion Mortgage (HECM) grew to $30.2 billion in Fiscal Year 2009 according to budget documents released earlier this week.
Despite only a slight increase in endorsed units, max claim volume grew 25% compared to the prior Fiscal Year total of $24.2 billion.
According to data from Reverse Market Insight, 22% [...]
Senator Chris Dodd (D-CT) and President Obama met face-to-face on Tuesday. Reports suggest that Dodd may drop the proposed Consumer Financial Protection Agency from the emerging Senate Financial Services Bill, in order to gain the support of some Republicans and centrist Democrats. One administration official said the President’s position in favor of the inclusion of [...]
With the FHA predicting a surge in Home Equity Conversion Mortgages (HECM) for Purchases next year to 3,420, up from 423 in 2009’s fiscal year, it seems a little surprising that the industry isn’t more optimistic about the program.
“Everyone in the industry was really excited about it when we realized we were going to get [...]
Canada saw fourth quarter origination of reverse mortgage jump to $43 million, according to the HOMEQ Corporation.
HomEquityBank, a subsidiary of HOMEQ Corporation, saw an increase of 77% over the same period last year and an increase of 11% over the previous record set in the second quarter of 2008.
“Our ability to access cost-effective and [...]
Every time the HUD makes a change or looks at its financial stability, the question arises: Should the government really be involved in homes and loans? Some members of Congress would like to see the FHA taken out of the HUD and put into the private sector.
For years, the HUD’s “government housing” options, specifically FHA loans, were [...]
Credit Counseling of Arkansas (CCOA) announced that it will be providing free reverse mortgage counseling to customers as of today.
An $18,000 federal government grant from the U.S. Department of Housing and Urban Development (HUD) will allow CCOA to provide free reverse mortgage / Home Equiy Conversion Mortgage (HECM) counseling (normally $125 per session) until the [...]
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Fannie Mae (FNMA) has updated its reverse mortgage loan application (1009).
The GSE updated the 1009 to comply with the Federal Housing Finance Agency (FHFA), and the Federal Housing Administration (FHA) requests to capture additional data during the loan origination/application process and loan delivery.
According to FNMA, the document has been updated to support loan originator [...]
A study by the National Alliance for Caregiving and the AARP showed that nearly one third of the US population are caregivers, defined as providing unpaid care to an adult or a child with special needs. These caregivers spend an average of 20 hours a week providing unpaid care.
While the study included several different types [...]
In this near-frozen credit environment potential borrowers still find most home mortgages tough to get; a major exception is reverse mortgages. Available for homeowners over 62 years of age, reverse mortgages have been representing a growing market for the past decade. Even in this recessionary year, the number of reverse mortgages has grown 4 percent.
Banks, [...]
Financial Services Bill H.R. 4173 passed in the House of Representatives this afternoon by a vote of 223-202. Included with it was the Reverse Mortgage Amendment proposed by Congresswoman Jan Schakowsky and Congresswoman Dina Titus. The Amendment passed overwhelmingly by a vote of 277-149, indicating bi-partisan support.
Schakowsky released a press release today saying, “We [...]
In the coming months the Federal Housing Administration will issue preliminary regulations that will be the first step in developing a method to mathematically determine a borrower’s eligibility for a reverse mortgage, according to Meg Burns, director of Single Family Program Development for the FHA.
The administration recently implemented a new set of standards for Home [...]
The US Department of Housing and Urban Development (HUD) officially extended the loan limits for its FHA-insured reverse mortgage program with Mortgagee Letter 2009-50. The changes are effective immediately for loans closed on or after February 24, 2009.
According to the Mortgagee Letter, FHA will allow HECM loans that received case number assignments but did [...]
In the last fiscal year, mortgage lenders funded 114,692 reverse mortgages under the FHA’s HECM program. Five years ago just 43,000 of reverse mortgage loans were written.
Until a year ago, the reverse mortgage niche looked like a safe bet for mortgage bankers seeking a haven from the carnage in the industry.
After all, what could be [...]
The secondary market for reverse mortgages is welcoming the expansion of adjustable rate securitizations through Ginnie Mae’s HMBS (HECM MBS) program. Leading the way for its sheer size is Bank of America – producing $200 million to $300 million a month in fixed and adjustable HMBS.
The reverse mortgage division at Bank of America released its [...]
Well there’s no doubt that the United States’ housing market is softening. And although prices may not continue to drop, and some markets may remain relatively strong, as a whole, the robust gains in real estate value across the country are over. Maybe not forever, but certainly for now. Housing starts have been down, and the [...]
Qualifying for a reverse mortgage is based on a number of factors, including your age, the value and location of your home, and the amount owed on your home. Ultimately, reverse mortgages allow you to access equity in your home; if the equity is not there, a reverse mortgage will unlikely be an option.
One of [...]
…There’s a lot you need to know about reverse mortgages. This Q&A will help clarify how this complex transaction works.
What is a reverse mortgage?
It’s a loan on your house that lets you tap your home’s equity. Like a cash advance, a bank fronts you the money—either as a lump sum, a line of credit or [...]
Be very careful when choosing. There are several legitimate mortgage lenders out there that offer reverse mortgages, but there are illegitimate ones as well. Be sure to pick one with a good reputation.
Although the lower interest rate of a variable rate mortgage can look good in the beginning, you must also look at it from a long term perspective.
Reverse mortgages can be a useful tool for seniors who need extra income. But for someone who doesn’t plan to live in her home for long, a reverse mortgage could be mistake. Here’s why according to a recent US News and World Report article about reverse mortgages.
Some reverse mortgage sales persons have come under scrutiny for pushing annuities at borrowers. So what exactly is an annuity and what does it have to do with reverse mortgages?
The FHA released a final rule today making the new HECM counseling standards official. The rule goes into effect on October 2, 2009.
The U.S. Department of Housing and Urban Development announced a new set of principal limit factors for the Federal Housing Administration (FHA) HECM program. The changes will lower the principal limits for the HECM by 10%.
Recently the Reverse Mortgage market has added a new index to the available options. You now have a choice of the index for your loan.
A reverse mortgage loan is a special type of mortgage loan for seniors (generally age 62 and older) that pays a homeowner loan proceeds drawn from accumulated home equity.
Reverse mortgages take about 30-45 days to complete (depending on the bank). Upon signing the final documents of your reverse mortgage, it typically takes 3 days to receive your proceeds. Reverse mortgages are federally insured programs, therefore they do take a little more time to complete as they are backed by the government.
The simplest way to figure out what you qualify for on a reverse mortgage is to contact a reverse mortgage specialist. The reason for that is because, how much you actually get is determined by various factors such as age, value of home, what you currently owe on the home, and what county your house is located in.
There are three different reverse mortgages available on the market today
A reverse mortgage can provide money when you need it, but do your homework before applying for a reverse mortgage. If your income from retirement funds, savings and Social Security benefits don’t cover your expenses, or you’d like the financial freedom to enjoy your retirement years a bit more, you can use the equity in your home to apply for a reverse mortgage.
One of the most often asked questions about reverse mortgages is: can they be refinanced? The answer is yes.