The Reverse Mortgage Program is About To Change

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

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 is hopeful that the changes can already be in place by October 1:

“However, FHA will take care to ensure it and the industry have sufficient time for an operationally responsible implementation.”

Among the changes the HUD and the FHA are looking to implement, pending the President's signature, are a financial assessment of the borrower(s), mandatory set asides for property taxes and homeowners insurance, restrictions on the amount of fund that can be initially withdrawn and, most importantly, inclusion of all borrower spouses on the loan regardless of age.

Now that the bill has gained the President's approval, the proposed changes will continue to move forward.

Federal Housing Administration Commissioner and Assistant Secretary Housing, Carl Galante said, after the bill's passing:

"This helps ensure that seniors who have worked hard their entire lives to purchase and maintain their home can continue to enjoy the comfort and security of that home."

Home security and peace of mind are essential during retirement and the changes coming to the reverse mortgage program are essential in maintaining the integrity and strength of the program. A reverse mortgage, and it's many available options, provide the flexibility and dependency older Americans need in later years. 

As a last resort, a reverse mortgage can help retirees avoid foreclosure, but as a retirement planning tool, it can mean the difference between retiring on time and having to working full, or part, time during your retirement.

Interested in a reverse mortgage program? There are many  to you with a reverse mortgage and plenty of ways to use it during retirement. Give PS Financial Services a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. We do not pressure those who inquire, we're just here to help.

HUD will fully implement these changes by October 1, 2013, which is the beginning of fiscal year 2014 for the US government.

Changes are coming to the reverse mortgage...the time to act is NOW!


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For more information, check out this blog post about the elimination of the reverse mortgage program as we know it:

The Reverse Mortgage Program (As We Know It) Is GONE!

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Information and content in this blog is original to Phil Stevenson

Please click the "SUBSCRIBE TO MY BLOG" button on the right, and receive more Traditional and Reverse Mortgage information in Florida and other parts of the US & Puerto Rico.

 

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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Rainmaker
656,967
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Did you say what I think you said?

I'm seven years younger than my hubby and have been wishing we could get at least consider the option of a reverse mortgage when he retires, but thought we'd have to wait until I'm old enough too.  Did you say they're considering removing that obstacle of requiring all parties to be 65?

Aug 20, 2013 05:36 AM #1
Rainmaker
270,036
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Joetta, I never mention that in the article. Presently, in order to qualify for a reverse mortgage you have to be 62 years of age and older, live in your primary residence and have enough equity in your home. These changes will be in addition to those already in place. In other words, the present qualifications aren't going to be enough after October 1.

In fact, that program is going to change all together, not just the requirements for homeowners for qualify.A more detailed explanation about the changes can be found here.

Aug 20, 2013 05:43 AM #2
Rainmaker
1,279,027
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Assistant

Phil~ Thank you for sharing this update about reverse mortgages. Rich and I are starting to work in the Senior Market and we need to be current!

Aug 20, 2013 08:05 AM #3
Rainmaker
270,036
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Donna, it's our responsibility to share any information we find. We are experts in our fields so we have to keep the public updated. Glad to help!

Aug 20, 2013 10:44 AM #4
Rainmaker
656,967
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

Dang!  I guess my 'wishful thinking' caused me to read something into what you said.  I'm subscribing to your blog so I can stay current.

Aug 20, 2013 10:55 PM #5
Rainmaker
270,036
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Joetta, glad I could help. Here's wishing you the best.

Aug 21, 2013 12:03 AM #6
Rainer
13,028
Ruth Velez
Welcome Home Realty - Portland, OR

Thanks so much, Phil, for this information.  Some people I've told about the reverse mortgage program have been dragging their feet.  I hope this information will be enough to light a fire under them.

Aug 30, 2013 12:36 AM #7
Rainmaker
270,036
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Ruth, it's definitely not the time to wait. In fact, it's crucial you don't, especially if you've been considering a reverse mortgage for a while already. Thanks for stopping by!

Aug 30, 2013 01:55 AM #8
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Rainmaker
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Phil Stevenson, CRMP

"Mortgage Nerd" in Miami, Florida and Texas
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