reverse mortgage proposed changes: Who Will Benefit from the New Reverse Mortgage Changes? - 10/15/13 01:14 AM
Who Will Benefit from the New Reverse Mortgage Changes?
Reverse mortgages are a viable option for seniors looking to tap into their home equity to, either get rid of outstanding debt before retirement, or save up for the proverbial "rainy day."
The housing crisis, and subsequent Recession of 2007-2009, however, put a damper on those plans. While the reverse mortgage continued to be a source of untapped income for baby boomers, there was considerably less amount of  money they would be eligible for.
Some unprecedented problems arose during this time, mainly with non-borrowing spouses and loan defaults, when homeowners were unable to pay … (0 comments)

reverse mortgage proposed changes: Finding Opportunity in a New Frontier - 10/12/13 01:42 AM
Finding Opportunity in a New Frontier
The reverse mortgage program changes, in a sense, wiped the slate clean. It created, not only a new, consolidated program, but changed the rules on how future transactions will be conducted. 
If anything, the new changes also created a new, unexplored frontier where reverse mortgage brokers, like myself, will have to find new opportunities and conquer new challenges.
As a "last resort," the program found success, helping many cash poor, house rich seniors live a more comfortable, fulfilling retirement. With the changes, however, the reverse mortgage industry will have to adapt as the program becomes a long-term … (3 comments)

reverse mortgage proposed changes: The Reverse Mortgage Program is Going Back to Basics - 10/04/13 12:58 AM
The Reverse Mortgage Program is Going Back to Basics
I don't know when happened exactly. Maybe it was the Recession of 2007-2009. Maybe it was the Fonz advertising it as a "last resort." Maybe it was a cultural shift all together, I don't know.
The reverse mortgage program, however is going back to basics: helping retirees age in place or secure a line of credit for any emergencies that may arise in the future.
Jeffrey Taylor, president of Wendover Consulting, Inc. said in an article published in Reverse Mortgage Daily:
"The HECM of 2014 is going back to its roots. The original intent of the HECM program, … (8 comments)

reverse mortgage proposed changes: Reverse Mortgage Program Changes Become a Reality - 10/03/13 12:22 AM
Reverse Mortgage Program Changes Become a Reality
As promised, the new reverse mortgage programs changes, approved in the Reverse Mortgage Stabilization of 2013, came into effect on September 30th. Guidelines for paying mandatory obligations and the financial assessment components will come into effect on January 13 of next year. 
While not all the components of the new changes have been worked out, there's no denying that the reverse mortgage program will no longer be the program we have come to know. 
Will it still help seniors in need? Yes.
Will it still be a valuable retirement planning tool? Yes.
It's time to still … (0 comments)

reverse mortgage proposed changes: Why Did the Reverse Mortgage Changes Have to Happen? - 10/02/13 01:07 AM
Why Did the Reverse Mortgage Changes Have to Happen?

It's a question that has been on my mind for a while. In truth, I don't think any ONE specific reason can be attributed to the changes that have happened to the reverse mortgage program this past year alone. 
It was more of a collection of habits and situations that ultimately lead to the approval of the Reverse Mortgage Stabilization of 2013, which approved the upcoming changes, set to be implemented September 30.
Maybe it was the "all-inclusive" approach of the program. While I appreciate that created an option for seniors to benefit from, … (20 comments)

reverse mortgage proposed changes: Counseling Appointments for HECM Loans Become Scarce... - 09/20/13 06:03 AM
Counseling Appointments for HECM Loans Become Scarce... As September 28 Deadline Approaches
HECM Loan counseling is a crucial component of obtaining a reverse mortgage. It ensures that applicants completely understand the in's and out's of the program and are fully aware of what is expected of them should they get a reverse mortgage. Counseling is done by an uninterested, third-party company, with no stake in the transaction, to make sure that the clients being counseled are not swayed one way or another.
HECM loan counseling is a preventative measure against any possible unethical practices among brokers, lenders, banks, etc. This is why … (15 comments)

reverse mortgage proposed changes: Does Less Money Mean Less Problems? - 09/19/13 12:17 AM
Does Less Money Mean Less Problems?
The changes to the reverse mortgage program are becoming a reality. By the end of September, the reverse mortgage program (as we know it) will be gone, and with it, the old principal limit factors.
According to an article in Reverse Mortgage Daily, the new principal limit factors under the consolidated reverse mortgage program, will be, roughly, 15% less than HECM Standard PLF for 2011.
In a nutshell, if a borrower could qualify for a HECM loan for the full 60%, under the new program they would receive 50% of that. Or, if a borrower … (2 comments)

reverse mortgage proposed changes: Reverse Mortgage Changes Will Protect (and Hurt) Consumers - 09/02/13 02:44 AM
Reverse Mortgage Changes Will Protect (and Hurt) Consumers
The beginning of August was an important month for the Reverse Mortgage Program. President Obama signed the Reverse Mortgage Stabilization Act of 2013 in law and with it set into motion a chain of events that will potentially change the reverse mortgage program as we know it.
Most importantly, the Stabilization Act allows the Federal Housing Administration to make changes to the program without prior approval from Congress. In short, FHA has the power to adapt the program as they see fit, based on consumer experiences and need, on their own. I'm sure if … (0 comments)

reverse mortgage proposed changes: An Update on the Upcoming Reverse Mortgage Program Changes - 08/23/13 12:21 AM
An Update on the Upcoming Reverse Mortgage Program Changes
As changes to the reverse mortgage program continue, the specifics of the changes continue to trickle in. In the National Reverse Mortgage Lenders Association's Weekly Report, President and CEO Peter Bell, details various updates on the upcoming changes.
In addition to the consolidation of the two existing reverse mortgage products--the Standard and Saver--into a new product, whose principal limit factor will fall somewhere between the two existing products, there will also be two new, "pricing options" for the new product:
Borrowers who draw less than 60% of the Initial Principal Limit (not … (0 comments)

reverse mortgage proposed changes: The Reverse Mortgage Program is About To Change - 08/20/13 04:57 AM
The Reverse Mortgage Program is About To Change
Following President Obama's signature of approval and the Senate's decision to pass the Reverse Mortgage Stabilization Act of 2013, which gives the Federal Housing Administration the authority to implement changes that will stabilize the reverse mortgage program, the FHA has announced that the new changes will come in August at the earliest, and will be fully implemented by October, according to an article published in Reverse Mortgage Daily.
The changes will be disclosed via a Mortgage Letter, which should arrive at the end of August, and the Department of Housing and Urban Development … (8 comments)

reverse mortgage proposed changes: The Reverse Mortgage Program (As We Know It) Is GONE! - 08/20/13 04:43 AM
The Reverse Mortgage Program (As We Know It) Is GONE...October 1st!
The Department of Housing and Urban Development, and reverse mortgage industry as a whole, has begun to slowly reveal what their plans are for the reverse mortgage program, following the Senate and Presidential approval of Reverse Mortgage Stabilization Act of 2013.
According to an article published in Reverse Mortgage Daily, "HUD to Combine Existing Reverse Mortgage Products," at a recent conference call for the National Reverse Mortgage Lenders Association, the HUD Deputy Assistant Secretary Charles Coulter, explained the proposed changes.
Proposed changes, aside from those initially sought to stabilize the … (3 comments)

reverse mortgage proposed changes: The Impact of Change on the Reverse Mortgage Program - 08/14/13 12:27 AM
The Impact of Change on the Reverse Mortgage Program
Last week marked the start of change for the reverse mortgage program when Congress approved the Reverse Mortgage Stabilization Act of 2013. With President Obama's signature of approval, the HUD hopes to implement various changes to make the reverse mortgage process a lot smoother for consumers in the present and future. 
The changes pending approval include, a financial assessment of the borrower, mandatory set asides for property taxes and homeowners insurance, restrictions on the amount of funds that can initially be withdrawn and include all borrower spouses on the loan, even if they are a … (0 comments)

reverse mortgage proposed changes: Senate Passes Bill to Stabilize Reverse Mortgage Program - 08/13/13 03:19 AM
Senate Passes Bill to Stabilize Reverse Mortgage Program
In what has been a long and winded battle, the Senate has finally approved a bill granting the Department of Housing and Urban Development the authority it's been seeking to closely manage the reverse mortgage program, pending the President's signature.
The Reverse Mortgage Stabilization Act of 2013, which was introduced by Representative Denny Heck and Representative Mike Fitzpatrick in May, will allow the HUD to establish additional guidelines and regulations to the already existing requirements of 62 years of age and older, live in your primary residence and have enough equity in your home.
(0 comments)

reverse mortgage proposed changes: The Standard Fixed-Rate HECM Loan...A Thing of the Past - 08/02/13 01:03 AM
The Standard Fixed-Rate HECM Loan...A Thing of the Past
Earlier this year, the Federal Housing Administration removed the Standard Fixed-Rate Home Equity Conversion Mortgage from its list of available reverse mortgage products, leaving only the HECM Saver ("Standby" Reverse Mortgage) and the Adjustable-Rate Standard HECM.
During a Senate Banking Committee hearing on Tuesday, July 23, the assistant secretary for the Department of Housing and Urban Development, Carol Galante stated that there were no plans to reinstate the program, according to an article published by Reverse Mortgage Daily.
The Congressional hearing was assembled in order to discuss the FHA Solvency Act of 2013, which would require yearly reviews of … (4 comments)

reverse mortgage proposed changes: Not All Regulations Cast a Dark Shadow... - 07/31/13 12:09 AM
Not All Regulations Cast a Dark Shadow....
Potential changes to the FHA-insured reverse mortgage continue, according to Government May Crack Down Harder on Reverse Mortgages...and there is no sign of them slowing down.
One of the biggest problems the reverse mortgage program is facing today is the potential loss of $943 billion on loans made when housing values were much higher, namely pre-recession home values. 
A potential solution came earlier this year with the elimination the Standard Fixed-Rate Reverse Mortgage, which allowed consumers to receive large lump sums upfront at fixed interest rates. The problem was that most homeowners would use … (6 comments)

reverse mortgage proposed changes: HUD Proposes Changes to the Reverse Mortgage Program - 07/31/13 12:09 AM
HUD Proposes Changes to the Reverse Mortgage Program
As new regulations continue for the Home Equity Conversion Program (Reverse Mortgage), the National Reverse Mortgage Lenders Association (NRMLA) voiced their support for the proposed changes because they see the "HUD proposal is a model responsive and responsible governing."
The President and CEO of NRMLA, Peter Bell, had this to say about the proposed legislation in an article published in Reverse Mortgage Daily:
"No government program works perfectly from the outset. HUD has carefully observed the results of the 780,000 HECM loans thus far and suggested creative improvements based on the actual experience of … (0 comments)

reverse mortgage proposed changes: The PATH (Act) to Hell is Paved With Good Intentions... - 07/27/13 06:44 AM
The PATH (Act) to Hell is Paved With Good Intentions...
It's not uncommon for a piece of legislation, which hopes to fix one problem, can create another. The Protecting American Taxpayers and Homeowners Act is just one of the most recent, especially where reverse mortgages are concerned.
The PATH Act, introduced by the House Financial Services Committee on July 18, seeks to:
Phase out Fannie Mae and Freddie Mac by the next five years and end their $200 billion taxpayer-funded bailout Increase competition by ending the dominion of the Federal Housing Administration  in the housing finance market Give consumers more mortgage program … (11 comments)

 
Phil Stevenson, CRMP, "Mortgage Nerd" in Miami, Florida and Texas (PS Mortgage Lending 305-791-4874 or 888-845-6630) Rainmaker large

Phil Stevenson, CRMP

"Mortgage Nerd" in Miami, Florida and Texas

Miami, FL

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PS Mortgage Lending 305-791-4874 or 888-845-6630

Address: 14100 Palmetto Frontage Rd Ste 104, Miami Lakes, FL, 33016

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