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.
The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. You choose how you want to withdraw your funds, whether in a fixed monthly amount or a line of credit or a combination of both.