Ask Your Reverse Mortgage Questions on redneL.com
Monday, 08 June 2009 14:41
Do you have a reverse mortgage question that you can't find an answer to?
Not sure if a reverse mortgage is right for you?
The staff at redneL.com is here to help!
This e-mail address is being protected from spambots. You need JavaScript enabled to view it your reverse mortgage questions and we'll feature the answers in one of our upcoming blog posts.
We look forward to hearing from you!
Helping Your Parents Make a Decision About a Reverse Mortgage
Monday, 08 June 2009 14:40
Oftentimes, it's the adult children of seniors who end up pushing a reverse mortgage decision one way or the other. That shouldn't be surprising as many older parents considering a reverse mortgage seek their children's input, knowing that they may very well be the ones who end up having to deal with it in 10-20 years.
So, if your parents are considering a reverse mortgage, here are a few key points to consider:
1. What Brings the Highest Quality of Life - Though choosing to use (or not use) a reverse mortgage may make slightly more financial sense than other options, this should always be a secondary consideration. The biggest single question, considering the fleeting and fragile nature of life, is what choice maximizes their enjoyment during their sunset years? If one choice brings a much higher level of enjoyment with only marginal financial differences, you'll probably want to go with that option.
2. Is the Home "Part of the Family" - If your great-grandfather built the home brick-by-brick, or that farm has been in the family for ten generations, you may not want to use a reverse mortgage. Though a reverse mortgage doesn't result in the automatic seizure of the home at death, heirs without sufficient assets to pay off the loan may be forced into selling something precious to their family.
3. Your Family's Medical History - Since many reverse mortgages require a borrower to continue to reside in the property, moving into a full-time medical facility could result in the loan requiring repayment. If your family has a history of long-term degenerative diseases such as Alzheimer's, you may want to avoid a reverse mortgage.
For more information on reverse mortgages, check out the following articles:
FHA Seeks $800 Million Dollars for Reverse Mortgage War Chest
Monday, 08 June 2009 14:40
The Federal Housing Administration (FHA) has requested an additional $800 million in funding, according to a recent Washington Post article. The funding is meant to help offset growing losses stemming from the drop in home values that underlie FHA reverse mortgages. While that might sound scary to potential reverse mortgage borrowers, it's actually evidence of many seniors coming out ahead on reverse mortgage transactions, versus other methods of accessing their home equity.
In a stable or growing real estate market, the amount of equity most seniors end up accessing is far less than what the FHA may eventually sell their home for. This normally ensures that the FHA, who backs reverse mortgages, comes out even or ahead on the transaction. However, with the recent steep declines in home values, properties sold to cover reverse mortgage balances aren't measuring up.
One encouraging note is that the FHA appears committed to not passing these losses on to other seniors in the program. By asking the government for additional funds, the FHA is attempting to shift any increased cost away from existing or new reverse mortgage borrowers.
For more information on reverse mortgages, check out the following articles:
National Public Radio Discusses Growth of Reverse Mortgage Scams
Monday, 08 June 2009 14:39
National Public Radio, or NPR as it is known to its listeners, recently did a short piece on the growth in both the number of new reverse mortgages, as well as the frequency of reverse mortgage scams. The NPR reverse mortgage piece wasn't necessarily negative on reverse mortgages, noting that they "work well" for some seniors. Rather, it acknowledged that some salespeople are using shady sales tactics and cross-selling other products to pump up their commissions.
The audio of the NPR's reverse mortgage news segment can be listened to on NPR's official site.
If you're considering a reverse mortgage, it's imperative that you know how they work and only deal with companies and sales people who have solid reputations.
For more information on reverse mortgages, check out the following articles:
Countrywide Reverse Mortgage Holders Begin Receiving Bank of America Correspondence
Monday, 08 June 2009 14:39
Causing some momentary confusion, seniors with a Countrywide reverse mortgage have begun receiving reverse mortgage statements and correspondence from Bank of America.
So, for anyone still completely in the dark, this is the result of Bank of America's acquisition and merger with Countrywide, including Countrywide's reverse mortgage operations.
The Bank of America and Countrywide merger will have no affect on the payouts received under existing reverse mortgages originally obtained through Countrywide.For more information on reverse mortgages, check out the following articles:
MetLife Bank to Begin Offering Reverse Mortgages
Monday, 08 June 2009 14:38
Financial giant MetLife has announced that they're now offering reverse mortgages to seniors age 62 and older through their subsidiary, MetLife Bank. The announcement reflects the increasing demand and acceptance of reverse mortgages as a valuable financial tool for some seniors.
MetLife reverse mortgages will include both adjustable rate and fixed rate home equity conversion mortgages (HECM) on properties that meet HUD standards.
In addition to a great FAQ section, the MetLife reverse mortgage website offers an easy-to-use reverse mortgage calculator. You can visit the MetLife Bank website at http://www.MetLifeBank.com.
For more information on reverse mortgages, check out the following articles:
The Reverse Mortgage Elder Protection Act Moves Forward in California Assembly
Monday, 08 June 2009 14:38
Originally introduced back in February of 2009, the Reverse Mortgage Elder Protection Act took another step forward in the state assembly last week. The bill is being applauded by both consumer groups and industry professionals, since it recognize the value of reverse mortgages to seniors, as well as the need to protect them  from various practices.
The primary mandates in the bill prevent a reverse mortgage lender or broker from:
- Cross-selling other financial products such as annuities, unless there are safeguards to prevent a conflict of interest.
- Referring clients to any outside party for the purchase of financial products.
- Allowing a client to enter into a reverse mortgage without providing certain disclosures.
Further, the Reverse Mortgage Protection Act requires the lender to provide the borrower with a list of no less than ten (10) referrals to HUD-approved reverse mortgage counseling agencies.
Perhaps the biggest protection though, is that the bill would allow seniors to rescind their new reverse mortgage within thirty (30) days.
Click here to read the full text of the bill.
At Home Chesapeake Offers Non-Profit Reverse Mortgage Workshop for Seniors
Monday, 08 June 2009 14:37
At Home Chesapeake, a non-profit organization that helps seniors live independently, is offering a free reverse mortgage workshop on Saturday, May 2, 2009. The workshop will be held from 10-11 AM at Longwood Gardens in Kennett Square, PA.
For more information call 410-647-1997 or visit their website at www.AtHome-Chesapeake.org .
For more information on reverse mortgages, check out the following articles:
Joseph Murin, Ginnie Mae Chief, Calls On Planners to Help Seniors Understand Reverse Mortgages
Monday, 08 June 2009 14:37
At a recent meeting of a Pennsylvania chapter of the Financial Planning Association, GNMA President Joseph Murin called on financial planners to be prepared to advise seniors on the advantages and downfalls of reverse mortgages . The reason according to Mr. Murin, is that the recent declines in the investment markets have tightened the screws on many seniors' portfolios, forcing them to look for cashflow from other sources.
The Financial Planning Association, which has chapters in every state, is a voluntary association of Certified Financial Planners and other types of planning professionals. Their official website, www.FPAnet.org , contains a searchable directory of financial planners in your local area.
For more information on reverse mortgages, check out the following articles:
New Senior Lending Network Product Allows Seniors to Buy New Home With Reverse Mortgage Proceeds
Monday, 08 June 2009 14:36
The Senior Lending Network (perhaps best known for having Robert Wagner as their spokesperson), has recently launched one of the most innovative reverse mortgage programs in the industry. The new reverse mortgage, known as the "HECM for Home Purchase" program, allows seniors to enter into a seamless transaction that uses the proceeds from a reverse mortgage on an existing home to purchase a new home.
The HECM for Home Purchase program may be ideal for seniors who wish to downsize their current home or make a long distance move, utilizing the stored equity in their home to fund the new transaction. Naturally, with the Senior Lending Network being the only organization to offer such a program, seniors should be sure to compare this program with other options such as selling their home outright or renting out their property and using the proceeds to pay for their new living situation.
For more information on reverse mortgages, check out the following articles:
