Until fees come down, as they are with the entrance of the big players such as Countrywide, Wells Fargo and Bank of America the clear cut benefit of the loan will always have its detractors. Especially those retirement gurus that tell you to save, be thrifty and leave your cash to your kids. While there is some formula in there I buy into, the jury is still out. The St Louis Dispatch has a good articles in the pros and cons of the loan.
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Written by charles dennis on May 20th, 2007 with no comments.
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Borrowers are more likely to be single females who terminate slowly.
May 18, 2007 A study of the timing of reverse mortgage terminations has been completed that provides the information necessary for Ginnie Mae (Government National Mortgage Association) to issue its first HECM Mortgage-Backed Security (HMBS) this year. The Ginnie Mae HMBS will allow approved issuers to securitize and sell FHA-insured reverse mortgages in the form of a Ginnie Mae security.
The study, published by the U.S. Department of Housing and Urban Development’s (HUD) Office of Policy Development and Research (PD&R), analyzed 16 years of Home Equity Conversion Mortgage (HECM) loan level data. The HECM is the Federal Housing Administration’s (FHA) reverse mortgage product.
“This groundbreaking research will enhance the development of a secondary market for HECMs; it provides keen insights regarding the timing of HECM loan terminations; and, will greatly assist secondary market participants in assessing HECM loan performance,” said Robert M. Couch, President of Ginnie Mae.
The study by Edward J. Szymanoski, (more…)
Written by charles dennis on May 19th, 2007 with no comments.
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Reverse home mortgage is the transfer of possession of a property by the reverse home mortgagor to the reverse home mortgagee for a particular consideration. The agreement incorporates the right of the reverse home mortgagor to redeem the property by paying the principal amount received during the transfer of possession. The contract also provides for the right of the mortgagee to collect income from the property to serve as interest for the money loaned to the reverse home mortgagor.
Contemporary reverse home mortgage evolved to provide incentives to banks to forward full payment without violating any law. There are two alternative actions. First, the bank buys the property and pays for it in full. It then acts as tenant collecting payment that is higher than the original purchase price to gain profit. Second, the bank makes full payment then resells the house at a higher price to gain profit. These alternatives benefit both the buyers and banks because the buyers do not pay interest with the banks gaining profit for their part in advancing full payment. This involves trust, payment of higher price by the buyer and non-imposition of an exorbitant price by banks. (more…)
Written by charles dennis on May 19th, 2007 with no comments.
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Reverse Mortgage Watch
- In Tennesse its better to stay then to sell.
- Own a McMansion, now you can get a reverse mortgage too.
I could never be a politician because I think I’m too selfish, and I think I like to have fun.. the right to be irresponsible is a right I hold dear.
-Bono
Written by charles dennis on May 18th, 2007 with 1 comment.
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Turning your house to gold through Manhattan Beach Reverse Mortgage
A nice view, a cool air breeze, and a beautiful sunset everyday. Who wouldn’t kill for that life? Manhattan Beach has been a lifelong dream for most of us to spend our retired days looking at that scenic view just outside our house. There are countless people who would do anything for that kind of retirement, saving all that they can so that they can afford that priceless view in their yard but a house is not the only thing important when we retire, there is Medicare, daily living expenses and debts that you have to pay for. Manhattan Beach Reverse Mortgage is your key.
Manhattan Beach Reverse Mortgage is a loan that turns your house into a pot of gold. The amount of money you will receive will depend on the value of your house and your age. Manhattan Beach Reverse Mortgage mainly requires you just to be at the age of 62 and above and an owner of a house that is approved by the Department of Housing and Urban Development (HUD). If you already passed the main requirements others will easily follow.
If ever you decide to get a Manhattan Beach Reverse Mortgage, it would be as if you already sold your house and receive payment either as lump sum, monthly, credit line or a combination of any of the three, at your discretion, but you will not be forced to leave or sell your house even if the total amount that you already received exceeded the value of your house. This money if used wisely will make your retired life a living paradise.
As a major concern of any borrower of a Manhattan Beach Reverse Mortgage, the manner of payment will entirely be your decision because the only reason for the debt to mature is if you decide to leave or sell your house and the money you owe will never exceed the value of your house. If ever you decide to sell your house the lender can never collect the proceeds that you would acquire from the transaction. This is the guarantee that Manhattan Beach Reverse Mortgage is very much proud of.
If ever you need that extra income aside from your pension, Manhattan Beach Reverse Mortgage is very much willing to give you access to another source of money for as long as you live. They have Manhattan Beach Reverse Mortgage consultants to guide you throughout the whole process. They also have Manhattan Beach Reverse Mortgage calculator available for you to see a projected amount of money you may receive. It is really a pleasure for Manhattan Beach Reverse Mortgage to help you achieve your dream of a peaceful and relaxing day at your own house.
Written by charles dennis on May 16th, 2007 with no comments.
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California’s top reverse mortgage lenders thru April 2007 according to American Community Survey. The following table shows California’s top 10 originators of HUD HECM (Reverse Mortgage) loans.
| Top California HECM Lenders |
HECM
Loans
2007 |
| WELLS FARGO BANK NA |
1,496 |
| LIBERTY REVERSE MORTGAGE INC |
572 |
| FINANCIAL FREEDOM SENIOR FUNDI |
378 |
| HOME CENTER MORTGAGE |
309 |
| NEW HORIZONS REVERSE MORTGAGE |
230 |
| SEATTLE MORTGAGE COMPANY |
210 |
| REVERSE MORTGAGES OF CA IN |
151 |
| OMNI HOME FINANCING INC |
148 |
| FUTURESAFE FINANCIAL CORPORATI |
111 |
| SENIOR FUNDING ASSOCIATES |
104 |
| LIBERTYSTREET FINANCIAL GROUP |
100 |
| GENERATION MORTGAGE COMPANY |
96 |
| MARK ALLEN MORTGAGE CORP |
87 |
| SENIOR AMERICAN FUNDING INC |
86 |
| WWMF INC |
79 |
| AMERICAN MORTGAGE PROFESSIONAL |
77 |
| LOAN LINK FINANCIAL SERVICES |
63 |
| WSB MORTGAGE SERVICES INC |
61 |
| AMERICAN SENIOR FUNDING CORPOR |
54 |
| ONE MORTGAGE NETWORK INC |
48 |
| HOME CAPITAL FUNDING |
47 |
| REVERSE MORTGAGE LENDING INC |
44 |
| CARROLLTON MORTGAGE CO |
44 |
| U.S. FINANCIAL MORTGAGE CORPOR |
43 |
| NETWORK SOURCE FUNDING INC |
43 |
Written by charles dennis on May 15th, 2007 with no comments.
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As Bank of America and Wells Fargo are lengthening their strong hold on the Reverse Mortgage Market, Countywide annouces that there is another elephant set to dominate the party. Marketwatch Reports that:
The nation’s aging population, along with the rapid housing-price appreciation from 2000 to 2005, has led to record growth in reverse mortgages, which allow homeowners 62 years old and above to turn home equity into income they don’t have to repay until they move out. The reverse mortgage takes its name from the way cash flows between a lender and a borrower. Rather than sending mortgage payments to a bank, as with a traditional mortgage, the borrower receives money in the form of a lump-sum payment, equal payments over time or a line of credit.
Countrywide’s
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Written by charles dennis on May 15th, 2007 with 1 comment.
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May 2007, Los Angeles
A wide variety of financial institutions in Los Angeles have different roles in finance and reverse mortgage. These financial institutions help make sure finance and Los Angeles reverse mortgage has no other problem. Some of these institutions include banks, link lenders and borrowers. These institutions in Los Angeles act as an intermediary among consumers, businesses, and governments by enabling reverse mortgage.
Courts in Los Angeles provide for the rules and remedy in applying the option given to the reverse mortgagor to seek payment instead of continuing with foreclosure. In suspending the possession proceedings, the court should be satisfied that the mortgagor is able to pay the arrears within the period agreed upon for completion of payment. If the court sees the ability to pay then the installment payments will commence. However, if the court deems the mortgagor unable to pay, the latter is given the option to seek the court’s permission to acquire possession of the mortgaged property to put it up for sale.
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Written by charles dennis on May 14th, 2007 with no comments.
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WCAX-TV recently interviewed soon to be retiree Sally Rice. Check out the interview here.
Sally’s contention like many is that retirement and pension payments may not be enough to live in this day and age when inflation and costs of living increases far outperforms many peoples current rate of return, if any return exist at all. While Reverse Mortgages are a great solution for many, the real issue that must be confronted is preparing for retirement for those that have had a late start or no start at all. As the interview points out:
“As the boomers get into retirement, and they start realizing that they want to do more… they want to stay active, and they’re on a fixed income suddenly, the reverse mortgage is a tool,” said Scott Funk, a reverse mortgage broker from Richmond.”
You can also catch the interview of Sally’s interview here.
Written by charles dennis on May 14th, 2007 with no comments.
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California, May 2007
There are plenty of reasons why one should like reverse mortgage. Anyone whose age is about 62 or older and owns her own home and needs to supplement her retirement income can use a reverse mortgage to obtain needed cash to support her and still remain in her home. In a nutshell, a reverse mortgage pays the homeowner by tapping into the value of her home. It is a special type of home loan that lets a homeowner change a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. One of which that offers such the California reverse mortgage.
The cash you get from California reverse mortgage can be paid out as a lump sum, a regular monthly cash advance or a credit line to draw upon when ever needed. The amount you can get from California reverse mortgage depends on the value and location of your home, and current interest rates. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow from California reverse mortgage. Depending upon the type of reverse mortgage you obtain, you can use the cash for everyday expenses, prescription drugs, in-home care, or home improvements and repairs. (more…)
Written by charles dennis on May 12th, 2007 with no comments.
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