Careless Advice

The following commentary is by James E. Veale | CPA, MBT

Proper Use Of Reverse Mortgages

Advice About Reverse Mortgages

The more I read and hear so called financial advisors presenting the use of reverse mortgages, the more troubling it becomes.  For example, one California reverse mortgage broker who allegedly provides retirement advice has issued press releases declaring that seniors are getting reverse mortgages to allow their portfolios and (401k and IRA) retirement accounts time to recover from recent investment losses.  Continue reading

Landmark Reverse Loan Services expands hours for NATIONAL coverage

Landmark Reverse Loan Services
Landmark Reverse Loan Services is expanding their operations and their hours. Starting January 1st, Landmark Reverse will be fully staffed and operational from 6:00am PST to 7:00pm PST to ensure the entire nation properly serviced during normal business hours. In addition, Landmark Reverse is excited to introduce their Regional Solution which will allow smaller lenders to submit THEIR approved appraiser so Lanmark Reverse can offer HVCC and FHA Compliant appraisal requests. Finally, local lenders can order appraisals with local appraisers whom they have prior working relationships.

 

Studies Detail HUD’s Risk for HECM Loans

HUD's Risk for HECM Loans

Home Values, Loan Amounts, and Seniors

Home values, loan amounts, and the way seniors use home equity conversion mortgages impact the Federal Housing Administration’s potential liability for its reverse mortgage program, recent studies show.

If the Department of Housing and Urban Development had used the same home appreciation models for fiscal year 2010 as it did in prior years, there would be no need for a $798 million subsidy appropriation for the HECM program, HUD officials told the Government Accountability Office in a study mandated by Congress.

And reverse mortgages with term or tenure plans are much less likely to be assigned to the FHA than line-of-credit loans, a Federal Reserve Board economist found in her own research of the HECM program.

HUD made a number of improvements to its cash flow model in 2008, partly because of a HUD Office of the Inspector General’s audit that found material weaknesses, said the GAO in a July 30 report. That year HUD began to incorporate national house price appreciation and interest rate forecasts from IHS Global Insight, an independent source for economic and financial forecasts, the report said.

To read the rest of the story – visit Reverse Mortgage Alert