Last week Fox Business posted an article entitled “10 Reasons Not to Take Out a Reverse Mortgage” . Everyone loves a top ten list and one would think such a list from a well known business site would be rooted in truth. Unfortunately Fox’s post is neither fair or balanced…
Continue readingThe Year in Review: Top Stories from 2014
During the past year the reverse mortgage industry has experienced drastic change. Our top stories for 2014 highlight the addition of new HECM Products, the Extreme Summit, the revised Principal Limit Factor tables and the inclusion of non-borrowing spouses, the HECM Financial Assessment, the impacts of double digit interest rates, and how a reverse mortgage fits into modern retirement planning.
Continue readingExpert Says Take a Reverse Mortgage Now
One well recognized mortgage expert, The Mortgage Professor: Jack Guttentag. He advocates taking a reverse mortgage now rather than waiting…
Continue readingWhen to Pull the Trigger
Sometimes it is not a question of if but when a borrower should take a reverse mortgage. As reverse mortgage loan originators we must be careful of straying into giving financial planning advice, however we should be aware of the factors that come into play when borrowers decide to get a reverse mortgage now or later.
Continue readingWhere Reverse Mortgages Fit in Modern Retirement Planning
“The idea that people can retire at 62 and walk around holding hands on the beach is not realistic”…
Continue reading5 Things You May Not Know about the Financial Assessment
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Five Take-Aways from the Financial Assessment
Two weeks ago today we hosted a national webinar on the Financial Assessment with over 800 participants. Since that time the proverbial dust has begun to settle allowing us to absorb more details for the new way of doing business. That said there are five key facets of the Financial Assessment that may be overlooked or misunderstood.
1- Credit Scores. One could reasonably conclude that anytime a lender is checking a credit report the applicant’ts credit score is a key factor in determining their eligibility. Fortunately unlike traditional mortgages where the applicant’s credit score not only determines eligibility but the interest rate the HECM program has no such consideration. The credit report is soley for examining a borrowers history of paying obligations in a timely manner thus indicating their willingness to meet the financial obligations of a reverse mortgage.
2- Non-HECM liens. Recently uncovered is the requirement that non-HECM liens where the borrower
Download a transcript of this episode here.
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The HELOC to HECM Dilemma
With the recent release of HUD’s Financial Assessment guidelines our focus was primarily centered on the new requirements future borrowers will have to walk through to qualify for a federally-insured reverse mortgage or Home Equity Conversion Mortgage…
Continue readingThe Financial Assessment Released
The long anticipated, or dreaded depending on your viewpoint, Financial Assessment was announced last week by HUD at the annual National Reverse Mortgage Lenders Association conference in Florida. The new guidelines will go into effect March 2nd, 2015…
Continue readingReducing HELOC Risks
HELOCs have begun to resurge in the mortgage market as home values have nearly recovered from their pre-crash values and today’s artificially low interest rates. While banks make these loans attractive to the average consumer what is often overlooked or not expressly pointed out are the risks and limitations.
Continue reading7 Questions We All Should Be Asking
In the interest of best serving the needs of the borrower and protecting ourselves against future legal claims, each of us should reexamine the questions should be asking each potential borrower…
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