reverse mortgage: What Exactly is a Reverse Mortgage? - 02/01/11 01:16 PM
What exactly is a reverse mortgage? (Technically known as a HECM - Home Equity Conversion Mortgage).
It is simply a loan against a home, just like a "forward" mortgage, in many respects.  Let's say you buy a home and get a mortgage from Moneybags Lending for $200,000.  Now Moneybags Lending has a lien against your home for that amount.  You now have to start making monthly payments to the lender until the loan is paid off or you either sell the home or refinance it (which has the effect of paying off the loan).  We are all familiar with these types … (2 comments)

reverse mortgage: Using a Reverse Mortgage to Purchase a New Principal Residence - 01/31/11 06:02 AM
A HECM for Purchase is the FHA insured reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.  The  program became effective January 1, 2009.  Previously, if a senior wanted to use a reverse mortgage to purchase a new principal residence, they had to secure financing for the home and then turn around and pay off that mortgage with a reverse mortgage.  The disadvantage was that it required two closings and the borrower incurred two sets of fees for the transactions. The new program - HECM for purchase - … (0 comments)

reverse mortgage: FHA/HECM Reverse Mortgage Loan Limit still at $625,500 - 03/15/09 06:13 AM
It wasn't too long ago that the lending limit on the reverse mortgage (HECM) was increased to one national limit of $417,000 instead of lower limits that varied by county. The increase was part of HR3221, the FHA Modernization Act, passed in July, 2008. It wasn't until November, 2008, that HUD allowed implementation of the new limit. The increase allowed seniors (over 62) with home values above the old county lending limit to access more of their equity.The limit was raised again to $625,500 which allowed access to even more equity on higher valued homes. 
I find this ironic in a … (0 comments)

reverse mortgage: Here we go again! HECM (reverse mortgage) limits will probably increase to $625,500! - 02/15/09 05:47 AM
It wasn't too long ago that the lending limit on the reverse mortgage (HECM) was increased to one national limit of $417,000 instead of lower limits that varied by county.  The increase was part of HR3221, the FHA Modernization Act, passed in July, 2008.  It wasn't until November, 2008, that HUD allowed implementation of the new limit. 
The increase allowed seniors (over 62) with home values above the old county lending limit to access more of their equity.  Raising the limit even higher, to $625,500 will allow access to even more equity on higher valued homes.  Since the Jumbo reverse mortgage … (0 comments)

reverse mortgage: New Reverse Mortgage Program -- HECM for Purchase - 01/05/09 09:28 AM
A HECM for Purchase is the FHA insured reverse mortgage that allows seniors, age 62 or older, to purchase a new principal residence using loan proceeds from the reverse mortgage.  This is a new program that became effective January 1, 2009. 
Previously, if a senior wanted to use a reverse mortgage to purchase a new principal residence, they had to secure financing for the home and then turn around and pay off that mortgage with a reverse mortgage.  The disadvantage was that it required two closings and the borrower incurred two sets of fees for the transactions. The new program - … (8 comments)

reverse mortgage: Announcing Reverse Mortgage Training Solutions! - 08/20/08 07:55 AM
Announcing Reverse Mortgage Training Solutions
I am thrilled to announce that my new company, Reverse Mortgage Training Solutions (RMTS) is now available to train anyone who wants to become a reverse mortgage originator.  Good quality training is sorely lacking and RMTS will fill that void.
Reverse mortgages are a high-demand niche market that is growing exponentially with the aging of America.  Older adults are facing financial hardships that the reverse mortgage could help solve.  RMTS training programs equip new and existing loan officers transitioning into reverse mortgages with the tools and resources to position themselves as the local expert on reverse mortgages.http://www.reversemortgagetrainingsolutions.com
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reverse mortgage: More Questions about the new HECM Limits - 08/07/08 05:17 AM
I got an email asking me about the HECM limits and I thought my response might be helpful to some of you:
Sylvia - Do you have any idea when the national loan max is going to be applied to Reverses? Also, do you have any info on the applicable percentage that will be applied against this amount based on the customers' ages? Clearly, we can't use the calculator for this so I was hoping you had that info or a way to get it. I have two clients now looking at the reverse product and I cannot tell what they … (2 comments)

reverse mortgage: More feedback about my comments in my post on One National Lending Limit - HR3221 - 07/29/08 11:24 AM
My, My.  I guess I stirred things up a bit.  I made a comment in my Blog Post Breaking News! One National HECM (Reverse Mortgage) Lending Limit passed by the Senate! about the cross selling of financial products to seniors.
Here is what I said in regards to a provision in the legislation HR3221: "It is about time that someone restricted the cross selling of financial products and annuities to seniors.  These are for the most part inappropriate products and have given reverse mortgages a bad name. It was not so much the reverse mortgage itself, but the inappropriate use of the proceeds that … (2 comments)

reverse mortgage: Correction on my last Blog about the One National HECM Lending Limit - 07/29/08 11:12 AM
I really goofed on my calculations in my last Blog, Breaking News! One National HECM (Reverse Mortgage) Lending Limit passed by the Senate!, and a couple of brokers pointed out my mistake (thanks, guys!).
I commented on how my client would benefit from the increase in the lending limit to $417,000.  I explained that with the current lending limit of $372,790, they would be $50,000 short of being able to pay off their existing mortgage and that with the new limit, they could access enough equity to just cover the mortgage.  I was so looking forward to telling them!
Well, I … (2 comments)

reverse mortgage: Breaking News! One National HECM (Reverse Mortgage) Lending Limit passed by the Senate! - 07/26/08 09:39 AM
Today, July 26th, the Senate passed HR 3221, Foreclosure Prevention Act of 2008, also known as the "FHA Modernization Act" and the President is expected to sign it immediately.
This bill provides for needed housing reform in general but has direct impact on the HECM (Home Equity Conversion Mortgage) specifically.
The bill will establish one national FHA lending limit for HECM's at $417,000. (The limit will be increased for high cost areas to $625,500 on January 1st, 2009). Currently the highest FHA lending limit is $362,790.  What this legislation means for senior borrowers is that they can now access more of … (13 comments)

reverse mortgage: So You Want to be a Reverse Mortgage Loan Consultant? - 05/14/08 10:50 AM

The reverse mortgage industry is sizzling. Each year there is an increase in the number of reverse mortgages originated.  A bulge of some 80 million baby boomers is currently moving through the population heading toward the retirement years. The vast majority of baby boomers are homeowners, many of them with substantial equity.  Many will consider tapping into the equity in their homes to help pay for retirement. It is predicted that one in five mortgage loans by 2015 will be a reverse mortgage.
Perhaps you are considering a career change and think you want to be a reverse mortgage consultant.  … (10 comments)

reverse mortgage: Reverse Mortgages and FHA County Lending Limits - 03/27/08 04:39 AM
There is some confusion regarding the status of the county lending limit increases for HECMs (Home Equity Conversion Mortgages), also know as reverse mortgages.
The recent FHA temporary loan limit increases are NOT applicable to HECM's.  The Economic Stimulus bill only created temporary higher limits through the end of this year for "forward" mortgages, not reverse mortgages.  The Economic Stimulus package specifically excluded HECM from all of its provisions
The House of Representatives passed its version of the FHA Modernization bill in July 2007 and the Senate passed its version in December. The two versions differ in a few areas (other than HECM … (8 comments)

reverse mortgage: Reverse Mortgage Q & A - 03/26/08 08:51 AM
I pride myself on staying in touch with my reverse mortgage clients.   Even years after the loan has closed, clients have ongoing questions and I am always available for them.  They often comment that it is so refreshing to call the same phone number knowing I will be there!
My clients also send their friends to me for information.  I started writing down some of the questions I get.  Because of the declining values we have been experiencing, a lot of questions revolve around equity and how values impact the reverse mortgage.
So here are some typical questions (with my answers) that … (13 comments)

reverse mortgage: Lenders more willing to accept reverse mortgage in lieu of foreclosure - 12/26/07 09:06 AM
Here's an interesting article in today's Wall Street Journal about how a reverse mortgage can help seniors who are facing foreclosure to keep their homes.  This is not news to me -- I have pulled many seniors from foreclosure with a reverse mortgage.  But what is new is that with the glut of bank-owned homes on the market, more lenders may be willing to entertain reverse mortgage payoffs even though the reverse mortgage proceeds do not cover the existing lien.
"If there's a way to settle the debt that nets the investor more than it would get if there was a foreclosure and a … (21 comments)

reverse mortgage: A Response to a misleading headline in the Modesto Bee about reverse mortgages... - 12/24/07 03:53 AM
I just read an article in the Modesto Bee titled "Reverse mortgages a new threat to seniors"
By TONY PUGHMcCLATCHY NEWSPAPERS - last updated: December 22, 2007 http://www.modbee.com/business/story/160490.html
The headline is a bit misleading.  The author is basically talking about how unscrupulous loan originators are advising their borrowers to use the proceeds from a reverse mortgage to buy a deferred annuity. I agree with the author that that is a deplorable practice which, in most cases, does not benefit the senior.  However, a cursory reading of the headline may scare some seniors away from reverse mortgages.  Perhaps the headline should have read: … (6 comments)

reverse mortgage: Reverse Mortgage: Why Wait? - 12/02/07 07:45 AM
When I talk with seniors about the reverse mortgage, many of them say they are going to "wait" awhile.  
When I ask them WHY?, they say "What if I need the equity in later years and I have used it all up with a reverse mortgage?"
First of all, what are "later years"?  The average reverse mortgage borrower is 72 yrs. old.  That seems late enough for me.  How much longer should they live a life of sacrifice waiting for some unknown need for equity in the future?  Now seems to be a good time to start living life. Life is short.
There … (4 comments)

reverse mortgage: Reverse Mortgage: Issues to consider before signing on the dotted line....... - 12/01/07 03:45 AM
I am often asked if a reverse mortgage is safe and is it a good program?  I always answer that, yes, it is very safe and it is a wonderful program. However, I don't think that is necessarily the right question to be asking.  The question anyone who is considering a reverse mortgage should ask is this: "Is the reverse mortgage right for ME?".  It is an issue of "appropriateness". 
Let's look at some issues that must be considered before "signing on the dotted line"....But first a quick review of the reverse mortgage.....
A reverse mortgage is a home equity loan that you do not … (14 comments)

reverse mortgage: Did you know that a reverse mortgage can be used in a home purchase? - 11/29/07 08:35 AM
It seems counter-intuitive that real estate professionals would need to know about reverse mortgages.  After all, the purpose of a reverse mortgage is to help KEEP someone in his or her home, right?  Actually, a reverse mortgage can INCREASE a Realtor's® business.
How?
You can double your business by listing the senior's home and helping them buy another one WITH a reverse mortgage.  Of course, the transaction has to be structured correctly (I can tell you how).  The important thing to know is that a reverse mortgage can be used in combination with the proceeds from the sale of a home or … (8 comments)

reverse mortgage: People who are ignorant about reverse mortgages and don't know what they are talking about, should not be so quick to judge..... - 11/24/07 06:40 AM
I just responded to a post where the blogger said that those of us who do reverse mortgages are "taking advantage" of senior citizens and that they are scams!  My blood is still boilling! Having made reverse mortgages my MISSION in life and knowing in my heart that I have changed so many lives through the reverse mortgage, I had to post a comment.  Here is what I said:
Scam, huh?  Sorry, you are misinformed.  Tell my 350+ clients that they should not have gotten into a reverse mortgage and they will tell you that it is the best thing that has happened to … (4 comments)

 
Sylvia Williams, Ed.D (Reverse Mortgage Consultant)

Sylvia Williams

Ed.D

Elk Grove, CA

More about me…

Reverse Mortgage Consultant

Address: Elk Grove, CA, 95624

Office: (866) 523-1959

Mobile: (916) 719-4683

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