reverse mortgage information: Nice Reverse Mortgage Piece on Marketwatch - 06/29/10 10:56 AM
It is always good to see or read fair and balanced media portrayals about Reverse Mortgages. Unfortunately there are not enough. Yesterday, Amy Hoak wrote a very fair article in Marketwatch about Reverse Mortgages. It is a worthwhile read. Here is the link to it:

reverse mortgage information: Another Presentation to Help Your Reverse Mortgage Understanding - 06/29/10 06:23 AM
Here is a presentation from Genworth (a division of GE that bought Liberty Reverse Mortgage a few years ago for $50 million dollars) that gives some basics about Reverse Mortgages. In my opinion, it is not as good as the guide I posted last week ("Your Reverse Mortgage Guide" which you can get here: but it can be helpful with many of the basic questions and issues that surround Reverse Mortgages. I know it's redundant, but I want to explain how Reverse Mortgages work to as many people in the world as I can because I believe that the more … (2 comments)

reverse mortgage information: In the spirit of Reverse Mortgage giving.... - 06/28/10 07:37 AM
Here is a presentation I gave several times to people in the insurance industry (mostly Long-Term Care Insurance, but Life insurance, too) I think it's a great explanation how Reverse Mortgages work and some great, real-life examples of how Reverse Mortgages can help insurance agents and their clients. I reiterate that I believe that Reverse Mortgages are the most misunderstood financial products in the world and I am doing whatever I can to explain them to as many people as I can because I know that the more people that understand how a Reverse Mortgage works, the more people can be … (2 comments)

reverse mortgage information: Another great Reverse Mortgage Giveaway - 06/25/10 05:14 AM
Here is a presentation that I have given at seminars about how Reverse Mortgages work. It is a little wordy and I am working on changing many of the slides, but if you read it, it gives a lot of useful information.My favorite part is about the misconceptions that people have about Reverse Mortgages. I still cannot believe how many intelligent professionals, many of whom serve the senior community, such as elder law attorneys and financial planners, still don't have a clue about how a Reverse Mortgage works. I can't tell you how many of them have told me that the … (0 comments)

reverse mortgage information: A few Great Examples of TERRIBLE Reverse Mortgage information - 06/24/10 03:29 AM
Before I start giving away more great stuff about Reverse mortgages, I wanted to give a few examples of completely worthless, and sometimes incorrect stuff that is out there about Reverse Mortgages, if you should happen to search for them. 
The first one is an article called "The 5 Key Reverse Mortgage Facts Before You Decide". Here is the link if you want to waste some time:
In fact almost none of the five things are remotely important in the decision to make about whether a Reverse Mortgage is right for you or not. "Take the counseling seriously" Are they serious? How … (0 comments)

reverse mortgage information: My First Reverse Mortgage Giveaway - 06/23/10 08:18 AM
This is, in my opinion, the finest written report on how a Reverse Mortgage works. I think it is the clearest written, most descriptive explanantion of most of the details about a Reverse Mortgage. I believe that Reverse Mortgages are the most misunderstood financial product in the world. I belive that complicated financial derivatives are easier to explain and enjoy less misconception by the public than Reverse Mortgages do. I am making it my mission, my purpose, to explain how Reverse Mortgages to as many people as possible because I believe that the more people that understand Reverse Mortgages, the more … (0 comments)

reverse mortgage information: I've decided to give away as much Reverse Mortgage information as possible - 06/22/10 10:27 AM
I am making my number one priority to educate as many people about Reverse Mortgages as possible.
I am going to give away, to anyone that asks for it, what I believ to be the finest written report about Reverse Mortgages that I know of. I have already posted three Reverse mortgage presentations on SlideShare and i will put more on there shortly.
I give this information freely because I believe that the more people that understand Reverse Mortgages, the more people can be helped by them. I believe that Reverse Mortgages are the most misunderstood financial product in the world today. Most … (4 comments)

reverse mortgage information: It's Easy To Get Frustrated Helping People With Reverse Mortgages - 06/16/10 08:30 AM
I thought this would be a lot easier. I know how much Reverse Mortgages help people. I have saved dozens of people from certain foreclosure. I have helped people who could not put food on their table, I have helped people help their children and I have helped people sleep at night, just by knowing that if an emergency comes up, they will have the money to pay for it.
No matter how much I help people and no matter how much I know and believe that I am doing the right thing, I still get frustrated every time I hear the … (6 comments)

reverse mortgage information: Great Piece in SmartMoney Today about the Reverse Mortgage Tax Implications - 05/27/10 10:38 AM
Bill Bischoff wrote stoday in SmartMoney that the tax benefits of a Reverse Mortgage for the heirs of the borrower may be much greater than the costs of the loan. 
His summary of what a Reverse Mortgage is and how it works is very well-written and he wrote that a Reverse Mortgage can possibly cause the stepped-up tax basis to eliminate or reduce the capital gains tax that they may have to pay.
Here's a link to this short and excellent article:

reverse mortgage information: Wow! Bank of America is starting to cover the biggest Reverse Mortgage closing cost on certain loans - 05/07/10 08:02 AM
It's no secret that fixed-rate Reverse Mortgages have been getting a much better execution in the secondary market. This means that the lenders are getting much more money when they sell the loans after they close.
Most lenders have been passing this on to the originators like me. Some have been covering some of the closing costs like the servicing fee or origination fee. The biggest closing cost is almost always the Mortgage Insurance Premium or MIP that is 2% of the appraised value (up to $625,500). The MIP is usually more than half of the closing cost total.
At first … (0 comments)

reverse mortgage information: There Really is Nothing Else That Does What a Reverse Mortgage Does - 05/05/10 05:44 AM
If all of the professionals that help Baby Boomers, Active Retirees and Seniors understood how Reverse Mortgages work, the world would be a much better place.
I hear pretty much the same story from every elder law attorney, financial planner, long term care insurance agent, daily money manager and geriatric care manager. It is:
"I understand reverse mortgages, I don't like them, they are a last resort, too expensive, there are better alternatives, they don't work for my clientele, etc."
Then, at some point in the same conversation or maybe months later, they'll say something like "The bank gets the house, right?" … (4 comments)

reverse mortgage information: The Wall Street Journal Mentioned that Reverse Mortgages Are Getting Cheaper - 04/29/10 10:37 AM
An Article last week in The Wall Street Journal mentioned the recent changes and that Reverse Mortgages are getting less expensive. Maybe this is he beginning of a new age of more positive media coverage.
Most professionals that help seniors (e.g. Elder Law Attorneys, Financial Planners, Daily Money Managers, etc.) that i have encountered, have very little understanding of the product and a negative bias towards it, mostly because they say it's "too expensive." If this new media attention towards less expenses will help open some of their eyes to Reverse Mortgages to help their clients, then I'm all for it.
Here's a link to the article:

reverse mortgage information: Major Changes Going On in the Reverse Mortgage Industry - 04/28/10 02:55 AM
After a year where loan amounts were cut by 10% and more cuts have been proposed (threatened) by the Department of Housing and Development (HUD) things lately have been getting better for Reverse Mortgage borrowers for the first time.
The Servicing Fee Set Aside, a difficult-to-explain amount that used to get withheld from the amount that borrowers could use, has been eliminated by all lenders for fixed-rate reverse mortgages. This gives an additional $2,000-$5,000 to many borrowers.
The adjustable-rate borrowers are still stuck with it. The reason for this is that secondary market execution (the amount that the lenders get when … (0 comments)

reverse mortgage information: Here's a great example of someone with no understanding of how a Reverse Mortgage Works - 04/27/10 05:12 AM
I have no idea who Harold Groves is, but he posted on a Stock market Review Blog, his opinion about how a Reverse Mortgage works. This would be good, if he had any idea what a Reverse Mortgage was.
The easiest answer is "it's just the opposite of a regular mortgage!" I make payments to the lender with a regular mortgage, so a reverse must mean that the lender makes payments to me!
The truth is that only a fraction of reverse mortgage borrowers receive monthly payments for a few reasons:
1) Most reverse mortgages are paying off an existing loan … (0 comments)

reverse mortgage information: Pretty Good Reverse Mortgage Piece on CBS this morning - 04/27/10 02:08 AM
I had heard that this clip portrayed Reverse Mortgages in a bad way, but I thought it was pretty fair and not too bad. Rebecca Jarvis talks about the pros and cons of a Reverse Mortgage and besides the ominous first slide that shows that the government has "taken over" $381 million in Reverse Mortgages this year (notice they don't mention how much the government has received in premiums from Reverse Mortgages) I thought it was not bad at all. Here is the link to the video:;contentBody

reverse mortgage information: Great, Short Video About Reverse Mortgages - 03/24/10 09:52 AM
Consumer Credit Counseling Services (CCCS) of Greater Atlanta is a large ccounseling agency that is now offering Reverse Mortgage counseling for free. Most other providers are charging $125. Third Party, independent counseling is required before a borrower can proceed with a Reverse Mortgage loan.
In the four minute video, several counselors discuss some pros and cons of a Reverse Mortgage. I thought it was extremely well done.
Here is the link to the video:

reverse mortgage information: I'm not the only one getting impatient about Reverse Mortgages for Co-ops - 03/23/10 06:31 AM
There was a letter to "Dear John" in the New York post on Monday by an impatient borrower waiting (almost two years now, since the law as passed) for the Department of Housing and Urban Development's (HUD) Federal Housing Authority (FHA) division to adopt the law that was part of the Housing and Economic Recovery Act (HERA, August 2008) that allowed the Home Equity Conversion Mortgage (HECM) for Co-ops. (Enough acronyms for you?)
I have posted a lot about how ridiculous it is that we are still waiting for this to come to fruition. John really doesn't understand how it works, … (0 comments)

reverse mortgage information: Security One started offering Fixed-Rate Reverse Mortgages with no Servicing Fees, and now everyone is jumping on the bandwagon - 03/18/10 07:02 AM
First a quick explanation of what a servicing fee is and how it affects Reverse Mortgage loans.
Reverse Mortgages do not require the borrower to make monthly payments so until now, at closing, there was a Servicing Fee Set Aside (SFSA) that was taken out of the available proceeds. This was about ten years of monthly servicing fees (depending on age and about $35 per month) for a total of about $4,000 to $5,000.
This money was just "set aside." It was not an actual fee so if the loan was paid off in a year, only the twelve months (12 X … (0 comments)

reverse mortgage information: The Home Economic Recovery Act was enacted in July of 2008! We are still waiting for the Reverse Mortgage Provisions to go into effect - 03/16/10 09:07 AM
It is mind boggling to me that Reverse Mortgages for Co-ops are still not in effect. I get at least one phone call or e-mail PER DAY asking me for help. I don't know what to say anymore, it has been almost twenty months and the Department of Housing and Urban Development (HUD) to get the program into place.
I understand that this is a big undertaking for HUD because HUD has not allowed Co-ops for any of its other loans, but COME ON! Isn't a year and half enough time?
There are thousands of people who need this right now. Hopefully, … (0 comments)

reverse mortgage information: I'm disgusted at the Government for continuing to cut the Reverse Mortgage loan amounts - 03/12/10 05:40 AM
David H. Stevens, Assistant Secretary of Housing for the Federal Housing Administration testified to Congress that the Reverse Mortgage program is important "The need for this type of program is greater now than it's ever been, due to increasing medical costs, declining employment/incomes, and less "savings" in various types of pension funds/retirement accounts," said Stevens.
However, he then said that limits (loan amounts) need to be cut further, even if Congress appropriates $250 million dollars to the program.
A few important details; the government insured Reverse Mortgage program has been around since 1989, even though nobody paid much attention to it until … (0 comments)

Michael Pinter (First Meridian Mortgage)

Michael Pinter

Brooklyn, NY

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Everything you ever wanted to know about Reverse Mortgages.



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