reverse mortgage changes: Age is an Increasingly Important Factor in Retirement Planning - 08/19/14 04:40 AM
Age is an Increasingly Important Factor in Retirement Planning
More than ever, age is quickly becoming an important factor in long term retirement planning. Baby boomers are living longer currently than any other generation that came before (and that's without getting into generations that plan to retire 30+ years from now.
The ideal retirement age is no longer 62 but 65 and is poised to become 70 in the next decade. By 2050, the number of Americans that will be 65 years of age and older is projected to be 88.5million, more than double the 2010 population of 40.2 million.
According … (5 comments)

reverse mortgage changes: NRMLA Reissues Ethics Guidance for HECM Refinance After Recent Changes - 07/15/14 04:42 AM
NRMLA Reissues Ethics Guidance for HECM-to-HECM Refinance After Recent Changes
The reverse mortgage program continues to change for the better, this time making more proceeds for older borrowers.
According to an article published by Reverse Mortgage Daily, at an interest rate of 6% borrowers who are 78 and older will potentially have access to greater principal limits than before.
This change means more money for older borrowers and a greater chance of a HECM-to-HECM Refinance for borrowers who obtained a reverse mortgage before the changes were announced.
While borrower(s) must wait at least 6 months from the closing date of their … (11 comments)

reverse mortgage changes: Reverse Mortgages…."Why Should I Get One?" - 05/21/14 02:48 AM
Reverse Mortgages…."Why Should I Get One?"
One of the questions consumers ask me during our initial conversations is: "why should I get a reverse mortgage?"
I understand that they come from a place of misinformation where the reverse mortgage is a loan of last resort, only to be used if you want to pay off your mortgage (and have a little extra saved up) and should never be considered if you have a retirement plan in place.
Nothing could be further from the truth.
Not only has the Financial Industry Regulatory Authority stated that the reverse mortgage is no longer a loan … (2 comments)

reverse mortgage changes: Getting the Information Out There is Also Part of the Job Description - 05/06/14 01:16 AM
Getting the Information Out There is Also Part of the Job Description
As a reverse mortgage professional, one of my job descriptions is to make sure the correct information is reaching current and future clients.
It's not part of any "official" job description but it's still an important part of the job.
The fact of the matter is, the reverse mortgage's reputation is still undergoing a lot of change, mostly because of misconceptions and extended use in improper ways.
In many ways, it's like an avalanche: the reverse mortgage was used as a loan of last resort by many borrowers or … (4 comments)

reverse mortgage changes: Reverse Mortgages Are Kinder and Gentler After Changes - 03/24/14 03:21 AM
Reverse Mortgages Are Kinder and Gentler After Changes
In the past few months, since the changes to the reverse mortgage brought the program back to basics, many financial planners are finally seeing the benefits, not only to the changes, but also to the program itself.
The reverse mortgage was never created to be a “loan of last resort,” even though many borrowers used it as such. In fact, it was created as a way for borrowers to age in place comfortably and use the equity they have built up throughout the years. In all honesty, the reverse mortgage was meant to … (4 comments)

reverse mortgage changes: Rising Senior Home Values Make Reverse Mortgages More Advantageous - 03/20/14 03:57 AM
Rising Senior Home Values Make Reverse Mortgages More Advantageous
Things are looking up for senior homeowners who have been struggling to rebuild their retirement plans after the Recession.
According to the latest Reverse Mortgage Market Index released by NRMLA and RickSpan, published along with an article in Reverse Mortgage Daily, senior home equity rose $83.5 billion in the last quarter of 2013, bringing total values closer to the 2006 peak level of $4 trillion.
This is good news for baby boomers that have been thinking of getting a reverse mortgage in order to supplement their retirement but have decided to wait … (0 comments)

reverse mortgage changes: New Reverse Mortgage Program Offers New Opportunities for Consumers - 02/28/14 04:49 AM
New Reverse Mortgage Program Offers New Opportunities for Consumers
The new, consolidated reverse mortgage was already introduced five months ago but that doesn't mean we should stop trying to educate consumers. In fact, I think five months is relatively short in the face of all the industry wishes to accomplish with the new program.
As a potential retirement planning tool, the reverse mortgage has a long way to go as far as public perception is concerned but where there is a will there's a way.
One of the best feelings recently has been talking to a potential client about the program and explaining to … (2 comments)

reverse mortgage changes: How Do You Deal With Changes (to the Reverse Mortgage Program)? - 02/23/14 11:45 PM
How Do You Deal With Changes (to the Reverse Mortgage Program)?
There is no right or wrong way to deal with change. Every time the reverse mortgage program has changed in the last year I haven’t had an exact blueprint on how I would need to change myself, or my business, in order to continue to be successful in a new landscape.
As far as the changes that were implemented on September 30 of 2013, it was more about helping as many people as I could before the change and then adapting accordingly afterwards. Fact of the matter is, those changes came swiftly, … (3 comments)

reverse mortgage changes: Reverse Mortgage Changes Offer a New Beginning - 02/20/14 04:48 AM
Reverse Mortgage Changes Offer a New Beginning
How many times has something in your lives changed? A lot? A little? Were you happy with it? Angry? What did you do to make it better? In truth, there are plenty of things those of us in the reverse mortgage industry can do to make the reverse mortgage changes a rewarding endeavor, starting with our attitude. While some have taken to given up and throwing their fists in the air, I've taken a more positive approach, seeing the changes as one small step for consumer satisfaction but one giant leap for the reverse mortgage … (2 comments)

reverse mortgage changes: "Retirement Still Out of Reach for Most" - 02/13/14 11:50 PM
"Retirement Still Out of Reach for Most"
Reports an article published by Reverse Mortgage Daily
Through stock market improvements and a considerable boost to the housing market, many Americans possibly found themselves hopeful in achieving a more comfortable, work-free retirement. 
However, a study conducted by the Boston College for Retirement Research has found that many households are still unable to maintain pre-retirement lifestyles when they chose to finally chose to retire. While this is only a minor decrease, down to 50% of households from 53% in 2010, it can be the first step to a more positive outlook in the future.
For the … (3 comments)

reverse mortgage changes: Not All Financial Planners Are Created Equal - 02/10/14 11:28 PM
Not All Financial Planners Are Created Equal
Moving forward, the help of financial advisors and planners will be an indispensable part of the success of the reverse mortgage program.
However, it's important for consumers to know that not all financial planners are created equal and they should seek out someone geared toward their specific needs that will provide crucial information on the state of their retirement and what they will need to make their retirement suitable.
According to an article published by Reverse Mortgage Daily, the Consumer Financial Protection Bureau has taken the necessary steps in order to ensure seniors are receiving the help … (3 comments)

reverse mortgage changes: "Reverse Mortgage is No Longer a 'Loan of Last Resort,'" Says FINRA - 02/06/14 11:58 PM
"Reverse Mortgage is No Longer a 'Loan of Last Resort,'" Says FINRA
The Financial Industry Regulatory Authority has declared that the reverse mortgage, or Home Equity Conversion Mortgage, is NO LONGER a "loan of last resort," thanks to research conducted by a Funding Longevity Task Force.
According to an article published by Reverse Mortgage Daily, FINRA has removed the statement from its published investor alert after looking over the research conducted. The Security 1 Lending assembled research team came together with one goal in mind: end any and all misconceptions surrounding the research mortgage program.
If FINRA's actions say anything is … (0 comments)

reverse mortgage changes: Consumers Can Now Get a "Fixed Fortune" - 01/29/14 12:34 AM
Consumers Can Now Get a "Fixed Fortune"
We have now unveiled a new fixed-rate HECM loan, the "Fixed Fortune," after unveiling the HECM Fixed Advantage last month, in hopes of giving borrowers more options when looking for a reverse mortgage.
The fact of the matter is, fixed products are needed when it comes to reverse mortgages, especially because there is a market for them. By completely eliminating any fixed products, HUD alienated a potential sector of the market. By bringing it back, within the HUD guidelines, the new products should offer a solution to many borrowers who wanted the security of a … (0 comments)

reverse mortgage changes: HUD Announces Upcoming Changes to the Reverse Mortgage Program - 01/26/14 11:37 PM
HUD Announces Implementation of Financial Assessment
The Department of Housing and Urban Development has finally made a decision in regards to the implementation of the financial assessment to the reverse mortgage program. In addition, it has also made a decision regarding the non-borrowing spouse by making changes to the amount of funds a borrower may have access to if they have a non-borrowing spouse.
In a report from the National Reverse Mortgage Lenders Association, HUD stated that it will publish two Mortgagee Letters in the following weeks to better explain the new rules to industry professionals.
The first, which will deal … (25 comments)

reverse mortgage changes: Successful Reverse Mortgage Counseling Can Help Seniors - 01/24/14 03:34 AM
Successful Reverse Mortgage Counseling Can Help Seniors
In order to help borrowers who are struggling to pay their property taxes and homeowners’ insurance, CredAbility, a credit counseling and debt management company based in Atlanta, is revitalizing its counseling efforts, reports an article published by Reverse Mortgage Daily.
In the past, consumers have defaulted on their reverse mortgage loans because they have not kept up with their financial obligations, namely, homeowners’ insurance and property taxes.
This is readily explained during reverse mortgage counseling, which is why it is such a crucial component of the application process. While I explain the in’s and out’s of the … (3 comments)

reverse mortgage changes: The Advantage of a HECM Fixed Advantage - 01/20/14 11:26 PM
The Advantage of a HECM Fixed Advantage
Days after Reverse Mortgage Funding announced it's plans to offer borrowers the HECM Choice, the fixed-rate reverse program product since HUD eliminate the fixed-rate Standard back in April, Live Well Financial, Inc. unveiled its new product, the HECM Fixed Advantage.
According to an article published by Reverse Mortgage Daily, the HECM Fixed Advantage allows borrowers to withdraw the remaining funds of their reverse mortgage 12 months after closing, instead of periodically via term or tenure payments. As with the HECM Choice, borrowers must withdraw 60% of their principal limit at closing.
In essence, the HECM Fixed … (2 comments)

reverse mortgage changes: Consumers Have A "HECM Choice" - 01/20/14 11:24 PM
Consumers Have A "HECM Choice"
Back in April, HUD did away with the fixed-rate reverse mortgage product because of the potential danger it posed to the Mutual Mortgage Insurance Fund. The problem with the fixed-rate is the borrowers would take out all the fund available at closing or risk losing any fund that were left over.
This caused some borrowers to spend all the money, faster than they could or should have, without leaving enough to pay their homeowner's insurance or property taxes throughout the life of the loan.  Borrowers who were unable to pay their financial obligations would find themselves in default … (4 comments)

reverse mortgage changes: Two Steps Forward, One Step Back for Reverse Mortgages? - 01/05/14 11:44 PM
Two Steps Forward, One Step Back for Reverse Mortgages?
The changes to the reverse mortgage program, which were implemented on September 30, have been polarizing to say the least. On the one side, it's could be the best thing FHA has done in order to make the program safer for future consumer while still protecting the Mutual Mortgage Insurance Program. On the other hand, it may make the reverse mortgage program less attractive for both affluent borrowers and more modest borrowers.
At this point, however, it's all speculaion as the changes have barely passed their two month threshold and there are still … (2 comments)

reverse mortgage changes: "Reverse Mortgages May Grow in Popularity…" - 01/03/14 04:46 AM
"Reverse Mortgages May Grow in Popularity…"
The reputation of the reverse mortgage as "a loan of last resort" has made many future borrowers wary of even considering it unless they are in a dire situation. 
This is the biggest hurdle for the reverse mortgage program moving forward, possibly the most important.
It's going to be an uphill battle, especially where consumers are concerned. Despite, the many people who are putting forth the effort to change the reputation of the program, consumer faith is what will determine, in the end, if we are successful or not.
Up to now, reverse mortgages have … (3 comments)

reverse mortgage changes: FHA Delays Reverse Mortgage Financial Assessment… - 12/20/13 12:11 AM
FHA Delays Reverse Mortgage Financial Assessment…For Now
The reverse mortgage industry can rest easily for the next few months following the Federal Housing Administration’s announcement that it would hold off on implementing a financial assessment component to the reverse mortgage program for an unspecified period of time after January 13 of next year.
While we are still in the dark about what exactly the financial assessment will entail and when it will be implemented, at least the industry gets a breather before another change is implemented. This is not to say that the reverse mortgage changes have been unsuccessful, no one can … (0 comments)