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Has the Terminator traveled to 2015?
In the 1984 syfi classic Arnold Schwarzenegger plays the role of a cyborg who travels from the year 2029 to 1984 hell-bent on the destruction of his present day nemesis. Not unlike the movie many fear that a new threat has traveled back in time from 2015 to 1989, the year of the HECM’s inception, threatening the very existence of the program. . The Financial Assessment. With detailed income and documentation requirements and the specter of fewer qualified applicants is the Financial Assessment the present day Terminator? Not necessarily.
The real threat from this decade can be found in a housing crash, younger borrowr ages and increased defaults due to non-payment of property charges. This threat forced regulators to travel back to 1989 and examine the program’s mission and inherent risks. HUD faced the daunting task of “reengineering’ the HECM’s core and reducing future risks in the process. The good news is that reverse mortgages have already survived the true ‘judgment day’ that exploded in 2009 with the housing and economic crash.
Fast forward to today and we should note a few things to keep in mind about the upcoming Financial Assessment.