Reverse Mortgages - The Next Subprime, or Baby Boomers' Savior?

Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

Some will say that the Reverse Mortgages are the next subprime catastrophe, but I would disagree.  The Subprime market was fueled by fraud and speculation.  The Reverse Mortgage is a tool that is used to help people in their retirement years regardless of income and financial status, and does not require a monthly payment.  So without the backlash of rampant foreclosures, the way we are seeing it with the subprime loans, why are people comparing these mortgages that don't require a payment to that of the toxic subprime?

Its mainly because FHA insures these loans, and values have dropped further than anyone had anticipated.  So for all the people who are upside down, if they pass away then FHA will have to cover the loss.  This is a phenomenal benefit to the borrower's heirs, but not so much to FHA.  I disagree that this a major issue because FHA & HUD are asking the government for a mere $250M to keep the Reverse Mortgages alive.  The government had to spend billions to bail out all the lenders involved in the subprime debacle, and not just a quarter million.

Baby Boomers are the largest age group in our country (50 years old to 64 years old, approx.), and many have either not saved properly for retirment or lost over half their savings in the recent market crash and recession.  So how can they gain back those funds?  If you see the articles in my website you will see one article that shows over 10% returns over several years will be needed for many seniors to simply get back to where they were before the market tanked.  So wouldn't a program that allows them to add hundreds of thousands to that portfolio help them keep the standard of living they had before retiring?

I would love to see your comments and discussions on this.  Please view my website and see not only the articles but the video testimonials from clients.  For those Reverse Mortgage sekptics, this may help you see the brighter side of the program and the impact it can have on individuals and families.

As a final note.  I did the Reverse Mortgage for my grandparents, and I am one of their direct heirs since my mother passed away.  That should prove the faith I have in this program.  THANKS!


Phil Stevenson

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Information and content in this blog is original to Phil Stevenson

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Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC


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Phil Stevenson, CRMP

"Mortgage Nerd" in Miami, Florida and Texas
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