What Industry Consolidation Could Mean For Consumers - 09/20/11 11:12 PM
Wells Fargo announced that they are exiting the reverse mortgage business, after more than 20 years of offering reverse mortgages.  While it may not have been the shot heard around the world, it is interesting that Wells Fargo is not alone.  Bank of America announced their exit from the reverse mortgage business in February of this year.  Even more interesting is that both occupied the #1 and #2 slots as the top volume reverse mortgage lenders in the country.
What will their exit mean for consumers?  By all accounts, the industry is still going strong.  A 2011 Harvard Housing Study predicted … (1 comments)

Despite Banks Abandoning The Sale Of Reverse Mortgages They Are Still A Viable Option - 09/20/11 11:11 PM
Within less than a year both Bank of America and now Wells Fargo have exited reverse mortgage market.  The reasons for the departures may have more to do with infrastructure set-ups, being able to achieve profitability, and getting in compliance with changing regulations from the Department of Housing and Urban Development (HUD) than with the product itself. In the past reverse mortgages received heavy criticism for high fees and aggressive sales tactics which may have pushed some seniors into opting for a reverse mortgage when they otherwise may not have.  The aura surrounding reverse mortgages has changed quite a bit as heavy … (0 comments)

Turned Down for a HELOC? Unlock Your Home Equity with a Reverse Mortgage - 09/20/11 11:10 PM
If you’ve been turned down for a traditional home equity line of credit (HELOC), you may still be able to get the money you need by tapping into your home’s equity using a reverse mortgage.  While a HELOC may not be an option for you during these tight credit times, if you’re a homeowner aged 62 or over with sufficient equity in your home, it’s relatively easy to qualify for a reverse mortgage. 
Many reverse mortgage homeowners have turned their home equity into tax-free cash to help meet their needs and satisfy their wants.  There are several benefits a homeowner can … (0 comments)

The Importance of HUD Counseling - 09/20/11 11:03 PM
There is a vast amount of information available on reverse mortgages. When making a decision as big as this one, it is no wonder that many people do their homework. Researching reverse mortgages is good preparation for a required HECM counseling appointment.  FHA funds housing counseling agencies nationwide to provide borrowers with information on reverse mortgages through face-to-face or telephone sessions.
HECM counseling covers a range of topics that could affect your decision on whether or not a reverse mortgage is for you. Counseling sessions include discussions on how a reverse mortgage can impact your eligibility for federal and state programs, … (0 comments)

Reverse Mortgages and the Recession - 09/20/11 11:00 PM
According to a recent AARP study 31.6 percent of seniors have experienced a substantial decline in home values in the past three years, and a fourth have exhausted their personal savings. Overall, more than half of those surveyed age 50+ were not too or not at all confident that they will have enough money to live comfortably throughout their retirement years.  One-third of respondents also mentioned that delaying retirement was an option they were considering while two out of five decided that they would likely work part-time during their retirement years. It’s unfortunate that many individuals in these situations consider working … (1 comments)

Eligible Reverse Mortgage Property Types - 09/20/11 10:56 PM
There is often confusion about what property types qualify for a Reverse Mortgage. If you are considering a Reverse Mortgage, the first step would be to determine whether or not your property is eligible. Property types that qualify for an FHA insured Reverse Mortgage include single family residences, 1 to 4 unit homes, approved condominiums or townhomes, and double or  triple wide manufactured homes that were built after 1976 and sit permanently affixed to an FHA approved foundation.
Another very important aspect to understand when considering whether a property qualifies for a Reverse Mortgage is that it must be owner occupied. … (0 comments)

Restructuring and Renting: Can it Fix the Shadow Inventory Problem? - 09/18/11 09:24 PM
Last month the Federal Housing Finance Agency (FHFA) asked for input on a plan it is considering to augment the Real Estate-Owned (REO) disposition programs run by Fannie Mae and Freddie Mac (the Enterprises) and the Federal Housing Administration (FHA).  The deadline for proposals is tomorrow.  Radar Logic, a data and analytic firm, responded with an innovative dual proposal for developing "cash market equivalent" values for real estate assets and reducing the inventory of owned real estate (REO).
The first of what Radar Logic refers to as its two prong approach would allow for aggressively restructuring the delinquent mortgages held by … (1 comments)

This week is stumbling to an end - 09/16/11 06:03 PM
This week is stumbling to an end, markets largely unchanged and I think exhausted at the sight of non-functioning government here and over there.
10-year T-notes did rise from all-time-bottom 1.90% to 2.10%, but either value is an emergency trade, and the rise did little to mortgages, still 4.125-4.25% and which three weeks ago stopped following the 10-year down.
The economy is conjugating the verb, "to stall." Stalling, stalled, will stall... the NFIB small biz index fell for the sixth-straight month, now back to recession levels. Industrial production rose a mighty 0.2% in August, and regional surveys found a slower rate … (0 comments)

Take Heed - 09/14/11 09:58 AM
Take heed......When you drink Vodka over ice, it can give you kidney failure.When you drink Rum over ice, it can give you liver failure.When you drink Whiskey over ice, it can give you heart problems.When you drink Gin over ice, it can give you brain problems.Apparently, ice is really bad for you!Warn all your friends.
… (1 comments)

White House Contemplating Major Refinancing Program? - 09/12/11 10:30 AM
The Obama administration is looking at creating a major refinancing program to help the housing market and give the economy a jolt, according to industry officials.  
Mortgage executives say the White House is finally realizing they cannot get the economy rolling again until they provide some payment relief for the estimated 11 million under water borrowers. "You are not going to have the kind of robust economic recovery that you need with so many homeowners struggling under this debt," said Glen Corso, managing director of the Community Mortgage Banking Project.
Mortgage rates are at record lows.  Yet these borrowers are blocked … (2 comments)

BOA to sell correspondent business - 09/01/11 10:00 AM
Bank of America Corp. intends to sell its correspondent mortgage business, as the troubled lender looks to narrow its focus and bolster its financial strength, said people familiar with the situation. Employees could be notified as soon as Wednesday that the lender has decided to exit the correspondent channel because it no longer fits with the long-term strategy for its mortgage unit. The company decided to get out roughly four to six weeks ago, following a review led by mortgage chief Barbara Desoer. The business employs more than 1,000 people. The move represents another repudiation of Bank of America's 2008 purchase … (1 comments)

 
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Rick Kellow FHA & Reverse Mortgage Expert

West Bend, WI

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Cherry Creek Mortgage

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