reverse mortgage information: Peter Schiff from Euro Pacific Capital is a big bear
- 11/25/08 11:58 PM
Mr. Schiff has been predicting the current economic crisis for a few years and up until about six months ago, most people called him crazy. Now he's being called "The man who called the collapse." you can see a six minute clip of him from last week here:
http://www.youtube.com/watch?v=wZUd2lMu5OQ&feature=related
He feels that the government bailout is the wrong solution and in fact, it is only making things worse. I am not sure if he is right or wrong, but I know that I would want to get my Reverse Mortgage as soon as I can, just in case he is.
… (10 comments)
|
reverse mortgage information: Judge orders woman to take a Reverse Mortgage
- 11/25/08 12:56 AM
A judge in Indana ordered a woman to take a reverse Mortage to repay the money she stole from the town where she worked. This is interesting because the judge had the prescence and understanding of the product to compel her to access her equity in a way that would not cause her any distress in the future.
I hope that the government shares some of the understanding and prescence of this judge and starts to use Reverse Mortgages as a tool for the many eligible borrowers who are in foreclosure today. Reverse Mortgages can help the current problem.
Here is … (2 comments)
|
reverse mortgage information: It's interesting to me that in all this confusion about the credit crunch, Reverse Mortgages have not been mentioned at all
- 11/23/08 11:50 PM
The truth is that Reverse Mortgages have not to this point, and hopefully will not, ever cause any financial distress.
The way the loans are structured sets them up for the investor to get paid when the loan terminates. Obviously, there is no risk of payment default (because ther are no payments) and now that all loans are guranteed by the government, any investor losses will get paid from the FHA premiums that are collected on each loan. The fund takes two percent on each loan and a half a percent added to the rate every month and claims so far have been negiligible.
… (3 comments)
|
reverse mortgage information: I can't wait for 2009
- 11/20/08 11:40 PM
2008 was a bit of a mess in a lot of areas. I am optimistic about the new year for myself and for the Reverse Mortgage industry in general.
The (slightly) higher limits and the allowance of Home Equity Conversion Mortgages (HECM's) for purchases and for co-ops (soon?) coupled with the economic downturn and so many more people needing to access the equity in their homes and the fact that there are far fewer options in the forward mortgage world, should make 2009 a great year.
… (8 comments)
|
reverse mortgage information: Hopefully, more people will start realizing that Reverse Mortgages can help the current housing crisis
- 11/20/08 07:48 AM
I have been reading a few people on blogs and in various media start to say that many seniors who are declaring bankruptcy and/or who are going into foreclosure could be saved with a Reverse Mortgage. Hopefully, this will start to pick up and more and more people will start to see that many people can be helped with this amazing product.
… (0 comments)
|
reverse mortgage information: I'm back from the conference
- 11/19/08 01:51 AM
The conference was a little dissapointing with very little new ideas there. The only two encouraging things I got from it were that most people believe that 2009 will be a much better year than 2008 AND that ther was some talk that the HECM limits will be raised again in 2009. Hopefully, we will get them to $625,000 and so many more people can be helped with a Reverse Mortgage.
… (4 comments)
|
reverse mortgage information: Posting from the Annual Reverse Mortgage show in L.A.
- 11/18/08 12:47 AM
The turnout is a little dissapointing this year with less attendees than last year. Not much new information as all of the non-FHA products are gone. Lots of optimism about the new changes and hopefully higher limits in the future.
… (2 comments)
|
reverse mortgage information: Reverse Mortgages have prevented and stopped many foreclosures
- 11/14/08 01:01 AM
Continuing the thought from yesterday. I received many comments form people who had used Reverse Mortgages to save people from foreclosure. I, too have helped many people who literally had no other option.
The reality today is that no matter what your Loan To Value (LTV) if you have a bunch of late payments and are in or about to enter foreclosure, there are no legitimite lenders to help you EXCEPT for Reverse Mortgage lenders.
… (6 comments)
|
reverse mortgage information: The Mortgagee letter finally arrived! Who cares?
- 11/07/08 01:51 AM
The letter officially raising the limit for all Reverse Mortgages to $417,000 was released yesterday. It provided nothing of any interest. Everybody knew it already and in fact many lenders have been accepting loans with the new limit for weeks.
We still await the letter about when Co-ops will be acceptable. I have many borrowers waiting for this one.
… (3 comments)
|
reverse mortgage information: Recent rate movements have hurt Reverse Mortgage Borrowers (a little)
- 11/05/08 02:42 AM
Many borrowers are still going to get more than before because of the incraese in the limits but recent rate increases have lowered the amount most Reverse Mortgage borrowers can get by about $3,000. Hopefully rates will come back down and borrowers will get the maximum (like they could a few months ago.)
… (2 comments)
|
reverse mortgage information: Forward mortgage business is pretty slow
- 11/04/08 05:04 AM
The fact that the supporting industries to the mortgage business are slow is helping out the booming Reverse Mortgage business. Title, appraisals and many other supporting services are super quick right now. The turnaround time for a Reverse to get cleared to close from application is getting smaller and smaller.
… (0 comments)
|
reverse mortgage information: Some good press for Reverse Mortgages
- 11/03/08 12:26 AM
The Housing & Economic Recovery Act (HERA) didn't do as much as we hoped for, BUT, a few of it's provisions have been (hopefully) turning the tide in the media's perception about Reverse Mortgages.
NPR ran a positive radio piece last week about Reverse Mortgages. The link to the audio is here:
http://www.npr.org/templates/story/story.php?storyId=96437763&ft=1&f=1001
I was also interviewed last week on a local show in New York(1620 AM) about Reverse mortgages and the housing crisis. I am still trying to get a transcript or an audio file to post.
In general, the provisions in the bill that forbids cross-selling of other financial products and increases … (0 comments)
|
reverse mortgage information: Reverse Mortgages are closing using the new limits
- 10/31/08 05:38 AM
I just closed my second loan with the new limits this morning. My clients were thrilled that they got more than they thought they would. I still can't belive the fact lenders are allowing it before the official mortgagee letter is realeased from HUD. Hopefully, we'll get it soon as well as the one about Co-ops.
… (0 comments)
|
reverse mortgage information: HUD finally releases a Mortgagee Letter, just not the one we were waiting for
- 10/30/08 02:37 AM
HUD released a mortgagee letter explaining how their Home Equity Conversion Mortgage (HECM) will work for purchases. They will start insuring them after January 1st.
We are still waiting for the letter about the new limits (which are unfortuately only going up to $417,000) and about Co-ops.
I am closing my first two loans today with the new limits. The origination fees are cappped at $6,000, but since the fee to HUD went up, the closing costs are the same as they were before.
I am still holding off a bunch of co-op clients who wnat to know when they can close.
… (2 comments)
|
reverse mortgage information: Finally, there is no lender for non-FHA Reverse Mortgages
- 10/29/08 12:44 AM
We all feared this day, but the last lender (Senior Lending) that offered a "Jumbo" or non-FHA Reverse Mortgage has stopped the product. They are saying that it is a temporary (60 day) suspension, but I am guessing that it will never start up again.
I certainly hope that some formation of these products return, when the credit cisis subsides (in a year or two) but until then, we have to hope that HUD wakes up and raises the limits for Reverse Mortgages above the $417,000 nationally.
Thsi si really no suprise because from what I understand, any lender that was trying … (0 comments)
|
reverse mortgage information: I cannot believe how many people still think the bank "gets" the house
- 10/28/08 05:14 AM
I spoke to two very intelligent people today who both thought that the Revese Mortgager lender "gets" the house after the borrower passes away.
A Reverse Mortgage is like any other mortgage. The owner retains ownership. the lender puts a lien on the property. When the loan is due (after death or sale) any excess equity belongs to the borrower or their heirs,
… (6 comments)
|
reverse mortgage information: Pretty Good Article about Reverse Mortgages in The New York Times
- 10/27/08 01:41 AM
The Times wrote a short, but suprisingly positive piece about Reverse Mortgages and the changes that the new law will making. Here is the link:
http://www.nytimes.com/2008/10/26/realestate/26mort.html?_r=2&oref=slogin&oref=slogin
Also, I was quoted in the last issue of "Reverse Mortgage" magazine in an article about how appraised values are dropping and their effect on Reverse Mortgages. Here is the article in PDF form
http://app4.websitetonight.com/projects/7/8/7/9/787969/uploads/Reverse_Mortgage_Article.pdf
… (0 comments)
|
reverse mortgage information: Reverse Mortgages have not contributed to the Credit Crisis
- 10/24/08 12:43 AM
I get asked a lot how Reverse Mortgages have been effected or been a contributor to the current credit and housing problems.
While Reverse Mortgages have been effected somewhat, with almost all of the non-FHA (HUD insured)products being discontinued, Reverse Mortgages have not contributed to the problem in any significant way.
The biggest issue in this whole mess are mortgage loans that were made that stopped making payments. Reverse Mortgages have no payments.
Well over 90% of all Reverse Mortgages are insured by the government. If the value of the property drops, rates go much higher than expected, or the borrower(s) live much longer … (2 comments)
|
reverse mortgage information: Although some lenders are allowing the new $417,000 limit, most can't figure out co-ops or purchases yet
- 10/23/08 07:29 AM
I have a bunch of borrowers waiting for co-op loans. I have a few purchases that also want to get going. HUD is really making us wait. it is now almost three months since the legisaltion passed (that raised Reverse Mortgage limits and allowed them for co-ops and purchases), and we still don't know when they will be able to handle it.
… (6 comments)
|
reverse mortgage information: Despite the continuing housing downturn, Reverse Mortgages are still the best option for many
- 10/20/08 05:42 AM
Despite the fact that many older Americans' homes are worth less now than they were two years ago, many of them have a severe need to access their equity and cannot do it any other way.
Most of these people are on fixed incomes and there are very few no income programs. even if tehy could qualify for a regular "forward" mortgages, they would not be able to afford the payments for too long (assuming they were cashing out.)
A Reverse Mortgage is the only thing in the world that can provide them with the cash they need and the peace of mind … (0 comments)
|
Mr. Schiff has been predicting the current economic crisis for a few years and up until about six months ago, most people called him crazy. Now he's being called "The man who called the collapse." you can see a six minute clip of him from last week here:
;)
;)
