reverse mortgage information: CBS MoneyWatch.com picked up on the future need for more Reverse Mortgages
- 03/10/10 06:09 AM
I posted a few days ago about a very informative report from the Center for Retirement Research. The post can be seen here: http://activerain.com/blogsview/1529114/interesting-report-from-the-center-for-retirement-research-shows-that-reverse-mortgages-will-be-needed-more-than-ever-in-the-coming-years Carla Fried, on the Retirement Beat for CBS Moneywatch.com, picked up a few great points from the report. She points out the increased retirement risk seen in the chart below:
and the risks with and without a Reverse Mortgage:
My favorite quote of hers is: "the fact is that many homeowners are still sitting on plenty of equity, and that asset will likely need to become part of the retirement planning conversation" Here is he link … (0 comments)
reverse mortgage information: I'm not sure why Golden Gateway thinks that Reverse Mortgage prospects home values are going up
- 03/10/10 05:13 AM
Golden Gateway is a Reverse Mortgage Lender and their website vistors seem to be inputting higher values lately, so they assume that their home values are rising. They announced that "average home values for older Americans have halted their slide after remaining flat or declining for seven consecutive quarters." The problem is that most people have no idea what their home is worth and in many cases the person using the calculator may not even be the home owner at all (and have even less knowledge of the actual value.) It would be great if "older Americans" home values had stopped … (2 comments)
reverse mortgage information: It is always great to debunk Reverse Mortgage Myths
- 03/09/10 09:12 AM
I found a very well written piece on SeniorJournal.com from last summer about the top ten Reverse Mortgage Myths. I've seen a few versions of this and I've posetd about them in the past, but it's always good to debunk the most common myths. Obviously the biggest myth is that the lender "gets" the house. All regular readers of my blog know that this is not true. The borrower retains ownership and the reverse mortgage is the same as having a regular "forward" mortgage on the property. The lender has no intention of ever taking posession. The second biggest myth is that at some point the … (1 comments)
reverse mortgage information: Interesting Report from The Center for Retirement Research shows that Reverse Mortgages will be needed more than ever in the coming years
- 03/05/10 03:31 AM
Thanks to Reverse Mortgage Daily for finding this great report from Boston College. The report looks like it is long (9 pages), but the end note stake up four pages and the whole report is about four pages long. The report is about the results of a recent survey of workers who are getting close to retirement. Obviously much of their retirement savings were wiped out in the past few years. What was obvious was that many of them planned to work longer and save more, but what was interesting was that most of them were not actually savings any more … (0 comments)
reverse mortgage information: Great Reverse Mortgage Article in the Herald
- 03/04/10 06:33 AM
Unfortunately, it was the Snohomish County,WA Herald. It was called: Some retirees use reverse mortgages to pay for affluent lifestyle and it mentions several people who are using their Reverse Mortgages to maintain their lifestyles. What I liked about it was that it shows that Reverse Mortgages are not a "last resort" which is how they are portrayed so much in the media. Also, it fairly explains the differences between a Hoem Equity Line of Credit (HELOC) and a Reverse Mortgage. Too often, teh media explains that a HELOC is better allternative (and in some cases it may be) without explaining … (0 comments)
reverse mortgage information: Very interesting report about the future of the housing market
- 03/03/10 12:22 AM
The Urban Land Institue came out with an interesting persepctive on how the housing market will perform over the next ten years. The report is called: Housing in America: The Next Decade and it says that things are going to be very different in the coming years. It predicts another 10% drop to home values nationally in the next year. The main point it makes is that the home ownership rate will decline from 69% to about 62% It also says that this is where it should be and where home ownership rates were from 1960-1990. I can attest that much … (6 comments)
reverse mortgage information: The "Village" Model is helping many Baby Boomers, Active Retirees and Seniors stay in their homes
- 03/02/10 08:58 AM
I recently learned about the "village" concept. It was started in 2001 in Boston's Beacon Hill area. The Beacon Hill Village was started by a group of people who lived in the area and decided that they 1) Want to stay in their homes 2) Might need some services such as transportation, home health care, handyman services, etc. 3) thought that a not-for-profit organization, funded by an annual membership fee could be a solution to their problems Today there are over twenty five villages modeled on the Beacon Hill Village concept. Most are in the San Diego and Washington DC area, … (3 comments)
reverse mortgage information: Reverse Mortgage Volume in January was down - big time
- 02/25/10 12:02 AM
The latest data shows that Reverse Mortgage Application volume in January was down about 50% from last year. Unfortunately this is no suprise. in my opinion; here's why: 1) The ridiculous 10% limit cut last year has made it impossible for thousands (millions?) of people to get a Reverse Mortgage because they now don't qualify for enough to pay off their existing loan. 2) The continued slide in home values is having the same effect. 3) The absurd new rules about ordering appraisals don't help anyone either. HUD has now required all appraisals to be ordered from Appraisal Management Companies (AMC's) … (0 comments)
reverse mortgage information: The number of people aged 55-64 who are unemployed has tripled - Some of them might need a Reverse Mortgage?
- 02/24/10 06:15 AM
A very interesting article from a few weeks ago in the Tampa Bay paper writes about the over 55 demographic as part of the national employment picture. All of its statistics come from the Bureau of Labor Statistics. First, the number of unemployed people aged 55 to 64 has tripled to 1.6 million since the recession started. Second the number of people over age 55 who are in the active workforce should grow by 43 percent by 2018. I'm not sure what their estimates are for national employment in eight years. What's important to see is that the baby boomer, active … (1 comments)
reverse mortgage information: The demographic trends concerning Reverse Mortgages are unbeliveable
- 02/09/10 03:35 AM
Here's a few nuggets about the Reverse Mortgage market and it's unbelievable potential: As per the U.S. Census Bureau, in 2004, over 27 million Households have at least one resident over 62 years old. 21 million (78%) Senior Households own their own home 73 percent of them own them outright with no current loan By 2020, the U.S. population over aged 65 will be over 55 million. As per a McKinsey & Co./ Boston College study in 2008; 40% of Seniors are forced out of work earlier than they expected. Most undersetimate their expenses during Retirement. 95% DON'T MOVE (every study of … (1 comments)
reverse mortgage information: A fantastic article about Reverse Mortgages in the Washington post
- 02/08/10 06:46 AM
Jack Guttentag, "The Mortgage Professor" wrote a great piece about Reverse Mortgages in the Washington Post on January 23rd. Kudos to Reverse Mortgage Daily which pointed the piece out a few days ago. The article is called "Reverse mortgages are not the next subprime" which refers to the horrendous statement made by John Dugan from the Office of the Comptroller of Currency(OCC) last year as well as the ridiculous, subjective and ignorant articles in Consumer Reports and by the National Consumer Law center (NCLC, whoever they are) that were just shameful. Mr. Guttentag is one of the few people in the media … (2 comments)
reverse mortgage information: I love Joe Murin! Read his exceptional piece on Reverse Mortgages
- 02/04/10 12:56 AM
Joe Murin was the head of Ginne Mae, the government agency that now securitizes most Reverse Mortgages and the only one of the three major Government Sponsored Entities (GSE's) that is not in trouble (Fannie Mae and Freddie Mac are the other two) He wrote a great piece in mortagge new daily about how he is sick of all the negative press about Reverse Mortgages. Here it is in its entirety: Reverse Mortgages: Friend or Foe? Definitely Friend by Joe Murin Posted I have had about all I can stand with the negative press related to Reverse Lending. The fact … (0 comments)
reverse mortgage information: Another horrible, one sided article about Reverse Mortgages in the LA Times
- 12/30/09 10:01 AM
This one made me nauseous. I don't know who Kenneth Harney is, but he wrote an absurd subjective piece two days ago in the LA times. He tries to distance his own negative opinions by writing that all of the negativity is from "the regulators" and that people in the Reverse Mortgage industry are guilty of not emphasizing teh negative aspects or Reverse Mortgages and stressing the benefits! I wonder if there is ANY industry in the world that isn't guilty of the same offense,it's called MARKETING or SELLING and it occurs for every product or service. How about doing some actual … (0 comments)
reverse mortgage information: It amazes me how poor most of the Reverse Mortgage Information is on the internet
- 12/29/09 11:58 PM
I can't believe how poor the general explanations about Reverse Mortgages are and how almost every website only look to gather information so that someone can sell something to the inquirer. It took me a while to wrap my head around Reevrse Mortgages, and I had been in teh forward mortgage worls for over ten years at the time. I can only imagine how someone looking for Reverse Mortgage information on teh web today would probably be bombarded with requests for personal info and negative media articles about the industry. I'm going to create my own website that gives out free … (0 comments)
reverse mortgage information: The Media still don't understand anything about a Reverse Mortgage
- 12/29/09 05:32 AM
The New York Times ran what should have been a benign story about how savings rates are so low that many seniors who are on a fixed income are really seeing their returns and income plummet. They mention one person who took a Reverse Mortgage to get some relief. Now, the basic idea was that a Reverse Mortgage did help and they even quote an "expert" who makes a positive comment about Reverse Mortgages, but the darn reporter couldn't pass up a chance to get her shot in by saying that "Reverse Mortgages have a checkered reputation" A checkered reputation? Who is … (4 comments)
reverse mortgage information: A Reverse Mortgage is about Dignity
- 12/28/09 01:50 AM
I was reading a book over the weekend about Dignity. It struck me that a Reverse Mortgage is about keeping one's dignity. When I think about the thousands or millions of senior homeowners who are in danger of losing their home, having trouble paying their bills or just worried about what might happen if they need a new roof, new boiler or any other major expense; I think about preserving their dignity by using their own money from their own home to help themselves. A Reverse Mortgage is not for everyone, but any senior homeowner with a financial need is a good candidate. Remember that … (2 comments)
reverse mortgage information: A decent Reverse Mortgage Article in the New York Times
- 12/18/09 12:59 AM
Paula Span wrote a pretty unimaginitive, uninformative piece about Reverse Mortgages two days ago entitled "Trading Home Equity for Cash." While I prefer one of these to the horrendous, subjective and uninformed pieces recently in Forbes and elsewhere, the article really leaves the reader with very little. The beginning of the article talks about how Reverse Mortgages work and the end gives some quick opinions of what to watch out for. Barb Stucki from teh National Council on Aging (NCOA)is quoted as saying :If you use your house as an A.T.M., you could jeopardize not only your financial situation, but your ability to continue … (2 comments)
reverse mortgage information: A real doozy of a Reverse Mortgage article in Forbes
- 12/16/09 06:08 AM
I don't know who Alexandra Zendrian is, but I really dislike her terrible portrayal of Reverse Mortgages in this month's Forbes Magazine. The article is entitled "Avoid Reverse Mortgages" I guess that says it all. She quotes some guy named Ron Roge who says that a Reverse Mortgage is only a last resort (What an ingnoramus) and mentions the ubiquitous "alternative" to a Reverse Mortgage of selling the house. Amazingly, there was no mention of the dozens of polls that show that well over 80% of seniors DONT WANT TO SELL THEIR HOMES! Also shockingly, she forgot to mention the simple fact that … (8 comments)
reverse mortgage information: What a crazy year it has been in the Reverse Mortgage World!
- 12/07/09 06:32 AM
2009 will go down in history as one of the most tumultuous, unpredictable years ever in the Reverse Mortgage world. The year started off great with the principal limits being raised at the end of 2008 and with the Home Equity Conversion Mortgage (HECM) program being extended to include Purchases and Co-ops in legislation passed at the end of 2008. The HECM for purchase program was initiated quickly and we are still waiting for the HECM for Co-op program to get started. Originations started off strong and tapered off towards the end of the year. Reverse Mortgages took a lot of hits in the … (0 comments)
reverse mortgage information: A great example of how so many "experts" just don't get Reverse Mortgages
- 12/03/09 08:35 AM
Here is a great example from today's Dallas Morning News, where Scott Burns, the financial "expert" takes a question about a reverse mortgage and really blows it. Here is the text of the question to Scott from P.H., His Answer to them and and my e-mail to Scott. You can boost cash flow without turning to a reverse mortgage 12:00 AM CST on Thursday, December 3, 2009 We are 75 and 69. Our financial situation is good. We live in a "senior citizen environment" and have a $100,000 mortgage on a $200,000 home. Our payment is less than $600 a … (2 comments)
I posted a few days ago about a very informative report from the Center for Retirement Research. The post can be seen here:
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