By NRMLA The continuing resolution (CR) that was passed by Congress yesterday and is now headed for the President’s signature extends the $625,500 national loan limit for HECM through calendar year 2010. Although the CR is a temporary measure providing funding thru 12/18/09 to allow a little more time for the appropriations bills to be …
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Recently I originated a reverse loan for a gentleman, Mr. Smith for the purpose of this article, who at first was very evasive about what he owed on his home. When Mr. Smith applied on my website he input that his home was free and clear.
Breaking News fromĀ Peter Bell, NRMLA President: I [Peter Bell] just got off a phone call with FHA Commissioner David Stevens and HUD Assistant Secretary for Congressional Relations Peter Kovar, who called to tell me that HUDĀ has posted a Mortgagee Letter implementing the 10% haircut in principal limit factors, effective for all loans on which applications …
We all know that there are only two guarantees in life: death and taxes. Seeing as none of us are going to get out of here alive, it seems appropriate to discuss what happens when the last surviving spouse passes away when a reverse mortgage is secured by the property.
Fannie Mae announced June 1, 2009 that effective September 1, 2009, they will no longer offer reverse mortgages based on the CMT or Constant Maturity Treasury. They will continue to offer the LIBOR (London Interbank Offered Rate)Ā index.
In our previous article, āMy Reverse Mortgage Costs How Much,ā we explored all the upfront fees involved in a reverse mortgage. Now, of equal importance, we explore continual costs that are accrued during the life of a reverse mortgage. These costs include the interest rate, the ongoing HUD Mortgage Insurance Premium (MIP), and the monthly …
As a short term financing tool, reverse mortgages are an expensive proposition. However when used long-term, those expenses are spread throughout the life of the loan, makingĀ a reverse mortgageĀ a viable solution to supplement retirement income, pay off a mortgage and have extra cash available to enjoy life to the fullest without the worry of mortgage …
Picture this… you’reĀ a senior homeowner and nearly every time you go to your mail box, you get 1-5 solicitations for a reverseĀ mortgage. You keep all the postcards and letters handy in case you decide to make a decision to proceed with a reverse mortgage. You’re starting to learn a lot about the program just from …
I recently read an interesting article by James E. Veale of Security One Lending on Reverse Mortgage Daily titled āAre Reverse Mortgages Really Income?ā The main thrust behind the article is that several reverse mortgage professionals are misusing the term āincomeā to describe the proceeds of a reverse mortgage.
Mortgagee Letter 2009-07 Raises Limits to $625,500 The U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-07, which officially raises the national limit for Home Equity Conversion Mortgages from $417,000 to $625,500 for the remainder of 2009.