AARP: Lenders abuse reverse mortgage sales,
Firms then push LTC, annuities to borrowers
Reverse-mortgage lenders may be depleting the home equity of borrowers by offering inappropriate financial products, according to a report issued last month by AARP.
Nine percent of borrowers surveyed by the association said lenders had offered them financial products such as annuities and long-term-care insurance which, according to the study, “may be unwise investments given the costs and purposes of the loan.”
“Consumers should be wary of anyone who tries to sell them something to be paid for with a reverse mortgage,” said Donald Redfoot, strategic-policy adviser for Washington-based AARP’s Public Policy Institute, and the principal author of the report, which was presented to a hearing of the Senate Aging Committee last month.
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AARP: Lenders abuse reverse mortgage sales
Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on January 23rd, 2008 with no comments.
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Elderly homeowners look into reverse mortgages for additional cash,
Pittsburg resident Loris Brown saw an ad on television some time ago and decided that the advertisement was worth looking into.Weeks later Brown, an 82-year-old retiree from Borden Dairy in Kansas City, Mo. found himself with $90,000 to do with whatever he deemed necessary.
That is because the advertisement that Brown saw was for a reverse mortgage.
“It was just a way I could use that money in the home for something if I wanted it,” Brown said. “I put in a new driveway and painted the house,” “I was just on Social Security and a small pension and it has worked alright for me.”
(more…)
Post from: Reverse Mortgage Loan Blog
Elderly homeowners look into reverse mortgages for additional cash
Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on January 18th, 2008 with no comments.
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New York’s Reverse Mortgage Market is a growing one. Data from 2001-2008 shows that Bank of America is not a player in New York, at least not yet.
| Top New York HECM Lenders |
HECM
Loans
Sep-2001
to
Feb-2008 |
| BNY MORTGAGE COMPANY LLC |
3,128 |
| WELLS FARGO BANK NA |
2,270 |
| FINANCIAL FREEDOM SENIOR FUNDI |
2,218 |
| VERTICAL LEND INC |
871 |
| M AND T MORTGAGE CORPORATION |
798 |
| M AND T BANK |
699 |
| COMMUNITY HOME EQU CONV CORP |
696 |
| FAST TRACK FUNDING CORP |
634 |
| AGENCY FOR CONSUMER EQUITY MOR |
595 |
| WELLS FARGO HOME MORTGAGE INC |
298 |
| CAMBRIDGE HOME CAPITAL LLC |
286 |
| AMSTON MORTGAGE |
283 |
| UPSTATE CAPITAL INC |
217 |
| USA FINANCIAL RESOURCES INC |
201 |
| CONCORD MORTGAGE CORP |
137 |
| CONTINENTAL HOME LOANS INC |
134 |
| FAMILY HOME FINANCE CORP |
111 |
| RESIDENTIAL EQUITY FUNDING COR |
110 |
| UNITED MORTGAGE CORP |
107 |
| UNITED NORTHERN MORTGAGE BANKE |
101 |
| CARTERET MORTGAGE CORPORATION |
94 |
| SOUTHERN STAR MORTGAGE CORP |
93 |
| AIG FEDERAL SAVINGS BANK |
68 |
| BEST INTEREST MORTGAGE CORP |
65 |
| ALBANY MORTGAGE GROUP INC |
64 |
Written by charles dennis on January 16th, 2008 with no comments.
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Reverse mortgage puts cash in owner’s hands,
A reverse mortgage has the potential to make retirement more pleasant and financially secure than it otherwise might be. An increasing number of seniors find themselves “house rich, cash poor.” While seniors have enjoyed rapidly appreciating home values, their incomes may have failed to keep pace with healthcare costs and general living expenses. A reverse mortgage may solve this problem and also provide many other benefits.
So, what is a reverse mortgage? A reverse mortgage enables homeowners, age 62 and over, to convert the equity in their homes to cash, without selling the property. The homeowners retain title and all the responsibilities of home ownership, such as taxes, insurance and maintenance.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on January 14th, 2008 with no comments.
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Heatmap Compares HECM Activity: 2007 vs 2006,
The following heatmap shows how HECM reverse mortgage loan activity changed from 2006 to 2007:
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Full post here Reverse Mortgage Information
Written by News & Feeds on January 14th, 2008 with no comments.
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Top 10 Reasons People Get a Reverse Mortgage,
AARP recently released one of the most comprehensive reports to date on the state of the reverse mortgage industry. The report (Reverse Mortgages: Niche Product of Mainstream Solution?) includes a wealth of information about consumer attitudes and experiences with reverse mortgages.
One of the more interesting presentations in the report is the listing of the top reasons given by people for considering a reverse mortgage.
Pay off mortgage (20%)
Home repairs/improvements (18%)
Improve quality of life (14%)
Everyday expenses (10%)
Emergencies/unexpected (9%)
Pay off non-mortgage debts (7%)
Health or disability (5%)
Property taxes/insurance (5%)
Financial help to family (2%)
Investments, annuities, or long-term care insurance (1%)
Household chores (1%)
No huge surprises here. Most of the reasons given could be categorized under “financial necessity”, affirming the perceived status of reverse mortgages as being a “last resort” measure. However, the third most popular reason given - improve quality of life - could mean that a fair number of borrowers are taking on reverse mortgages for non-essential things like travel.
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Full post here Reverse Mortgage Information
Written by News & Feeds on January 14th, 2008 with no comments.
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2007 HECM Numbers,
HUD has reported Home Equity Conversion Mortgage (HECM) endorsements for December 2007 and, as the chart below shows, growth continues to slow markedly from the first months of 2007.
Key Points:
8,007 HECM loans were endorsed in December 2007, a 3% decline from the 8,270 endorsements in the prior month (November 2007) and just a modest 3% increase over the 7,760 HECMs endorsed in December 2006.
December’s HECM figures represent the second consecutive monthly decline and the second worst monthly production of 2007. The only lower month was September 2007 when just 7,605 HECMs were endorsed.
The 12-month moving average of monthly HECM volume hit an all time high in December (9,024), due to the very healthy monthly totals in the first part of the year. Unfortunately, December was the fourth consecutive month in which HECM production fell below the 12-month moving average (indicated in the chart by the blue line falling below the red line).
108,293 HECM loans were endorsed in 2007, a healthy 26% increase over the 85,639 HECM loans generated in 2006. By way of comparison, the 2006 total represented a 77% increase over 2005 (48,493 loans).
2007 can be dissected into two distinct parts: for the first 8 months of the year, 75,904 HECM were endorsed, a 39% rise over the same period in 2006; in the last four months of 2007 (post-housing crisis), 32,389 HECMS were endorsed, just a 4% rise over the last four months of 2006.
Three months of 2007 - March, May and July - saw HECM endorsements top the 10,000 mark. The all-time high was reached in March 2007 when 10,888 HECM loans originated.
For more HECM loan information (or to do your own analysis), visit our HECM Information database tool.
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Full post here Reverse Mortgage Information
Written by News & Feeds on January 14th, 2008 with no comments.
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