Homeowners in their golden years will soon have relief from rising expenses, and it’s coming from a familiar source: their homes. Statewide Bancorp is now offering Reverse Mortgage’s with loans up to 6 million dollars. Rancho Cucamonga, CA (PRWEB) August 29, 2007 — Homeowners in their golden years will soon have relief from rising expenses, and it’s coming from a familiar source: their homes.
Statewide Bancorp announced this week it will offer reverse mortgages, which allow homeowners age 62 and up to convert part of their home equity into tax-free income. Payouts can come as a lump sum, a monthly income, a line of credit, or a combination of all three.
“Rising energy costs, rising healthcare costs, and taxes are making it difficult for Seniors to enjoy their golden years,” says Statewide Bancorp’s COO Alex Diaz, Jr. “Reverse mortgages provide a much-needed financial flexibility.”
The homeowner will never have to make a payment as long as they occupy the home, which is why many borrowers are using reverse mortgages, even for purchasing a home. Statewide now offers these mortgages with loans up to 6 million dollars.
The new product can also help eligible homeowners generate cash for home improvements, travel and other out-of-pocket expenses. (more…)
Written by charles dennis on August 16th, 2007 with no comments.
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Impac Mortgage, The Irvine, Calif.-based real estate investment trust said Wednesday that it does have financing facilities and continues to fund loans that are eligible to be sold to the government-sponsored agencies. The company has also made all margin calls to date.
Impac has also secured “definitive agreements” to begin originating and selling reverse mortgage loans through its wholesale and retail platforms, it said.
Reverse mortgages, typically used by senior citizens in need of money, enables the borrower to convert equity accumulated in their home to income, according to the National Reverse Mortgage Lenders Association.
Written by charles dennis on August 9th, 2007 with no comments.
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Requirements
To qualify for a reverse mortgage in the United States, the borrower must be at least 62 years of age. There are no minimum income or credit requirements, but there are other requirements and homeowners should make sure that they qualify for the loan before they invest significant time or money into the process. For most reverse mortgages, the money can be used for any purpose; however, the borrower must pay off any existing mortgage(s) with the proceeds from the reverse mortgage and, if needed, additional personal funds. A pending bankruptcy that has not been finalized may, however, slow the process. Some types of dwellings, such as lower-value mobile homes, do not qualify. Before borrowing, applicants must seek free financial counseling from a source that is approved by the Department of Housing and Urban Development (HUD). The counseling is a safeguard for the borrower and his/her family, to make sure the borrower completely understands what a reverse mortgage is and how one is obtained
Written by charles dennis on August 8th, 2007 with no comments.
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MELVILLE, N.Y.–(BUSINESS WIRE)–Vertical Lend announced today that it has recently signed a definitive agreement to be acquired by KBC Financial Products, a wholly-owned subsidiary of Belgian-based KBC Bank NV. The acquisition is expected to accelerate Vertical Lend’s objective to increase market share and brand recognition in the reverse mortgage lending market through its highly recognized Senior Lending Network. Vertical Lend (VL) is the fifth largest provider of home equity conversion mortgages (HECM). KBC Financial Products (KBCFP) is a market-leading specialist in equities and equity, credit and fund-linked derivatives and structured credit products.
“Our acquisition of Vertical Lend provides a tremendous opportunity for our company to participate in the growing reverse mortgage market,” said Thomas Korossy, chief executive officer of KBCFP. “Our strength in capital markets should enable Vertical Lend to provide the products and expanded distribution channels needed to broaden their offerings in the U.S.”
“We expect this synergistic relationship to produce a significantly positive change in the type of reverse mortgages that are being written today,” said David Peskin, chief executive officer of Vertical Lend. “KBCFP has the products and the financial strength, and we are a leader in marketing and distribution.”
Financial details of the transaction have not been announced. The deal is expected to close at the end of the month, subject to certain conditions, including final regulatory approvals.
About Vertical Lend
Vertical Lend (VL) is one of the premier reverse mortgage services companies in the United States, offering originators complete lead-to-closed services through comprehensive marketing, lending, education and technology solutions. VL is dedicated to building the reverse mortgage industry by fostering strong partnerships with originators and by providing outstanding consumer education. Through VL’s national consumer education campaign, Senior Lending Network, VL educates millions of Americans about the important benefits of reverse mortgages and then refers interested consumers to qualified and experienced originators, who have access to VL’s wholesale reverse mortgage products, technology and education services. For more information, call 1-800-562-6755 or visit the company’s website at www.verticallend.com.
About KBC Financial Products
With offices in New York, London, Tokyo and Hong Kong, KBCFP is a wholly-owned subsidiary of KBC Bank NV. KBCFP’s product range includes equities, convertible and high yield bonds, equity derivatives, fund derivatives and structured credit products. KBC Bank NV is a wholly-owned subsidiary of KBC Group NV, a large multi-national banking and insurance group listed on Euronext Brussels. KBC Group NV, a multi-channel banking, insurance and asset management group, is one of the leading financial institutions in Europe, focusing on Belgium and Central Europe, and catering to retail and private banking customers. For more information, visit the KBC Financial Products website at www.kbcfp.com.
Written by charles dennis on August 3rd, 2007 with no comments.
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It seems as though by the mountains of emails I receive regarding the reverse mortgage in other countries, America is not alone in their quest to exploit the popular new mortgage product. In Australia, brokers and estate planners are lining up to gain accreditation to complete the loans.
Over Fifty Group (OFG) and SEQUEL have partnered up to provide reverse mortgage accreditation courses for brokers and planners.
Driven by the growing popularity of reverse mortgages and equity release products, as well as growing pressure from consumer groups such as Choice, the course will be offered free, but with a $75 registration fee payable to SEQUAL.
Technical services manager Benedict Davies said the establishment of SEQUAL’s accredited course earlier this year helped develop the seminar program, which formalises training work OFG had already done in reverse mortgages,
“As a product provider, we want to ensure intermediaries who recommend the product have an acceptable level of training. It protects our interests but importantly it protects the consumer’s interests as well,” he said.
Benedict said he hoped to get around 100 planners and brokers to the sessions, 50 per half-day course.
Courses will be available in all mainland states, but will exclude Tasmania and the Territories. However, Davies said if there was demand, extra seminars could be arranged.
Written by charles dennis on August 3rd, 2007 with no comments.
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REVERSE MORTGAGE: Designed to strengthen senior citizens’ personal and financial independence, these loans allow homeowners to convert the equity in their home into cash. Any existing mortgage is paid off and homeowners don’t make any payments to the lender as long as they live in the house.
• Pros: Proceeds are tax-free as long as the property owner lives in the home. There are no income or credit requirements to qualify and equity may be drawn through monthly payments from the lender to the homeowner or as a credit line.
• Cons: Though the property may be passed on to the homeowner’s heirs, money received from a reverse mortgage is payable to the lender when the property owner leaves permanently. All the fees are paid for upfront.
• Most suited for: A senior looking to shore up his or her personal independence who has amassed a lot of equity in his or her home and expects to be there for at least three years or more.
• Least suited for: Someone looking to fill short-term borrowing needs.
AJC
Written by charles dennis on August 3rd, 2007 with no comments.
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North Jersey Group has recently created a proprietary loan product for seniors currently residing in Co-Op’s which will be a welcome addition to the mortgage field.
And that is the problem for many seniors wanting to stay in their homes rather than having to sell to access the cash locked in their property. Until recently, reverse mortgages were not available to co-op owners in New Jersey, but now one lender has created a proprietary product that can be applied to co-ops as well as other types of dwellings, such as single family homes and condos.
The reverse mortgage addresses the dilemma faced by people rich with real estate but poor in cash by turning the equity in a senior’s home into available cash that requires no monthly payments, nor does it have to be repaid until the owner sells, leaves the home permanently or dies. No income is needed to qualify, either. The only requirement to be eligible for a reverse mortgage is that the borrower owns his or her home, be 62 years of age and not be delinquent on any federal debt. Loan amounts are calculated based on age and property value. Consumers should know that all reverse mortgages have some type of upfront fees making them more expensive than other mortgage products. Full Article
Written by charles dennis on August 2nd, 2007 with no comments.
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