McCaskill urges Nixon to go after scam reverse mortgage marketers,
U.S. Sen. Claire McCaskill wants more protection for senior citizens who are targeted by unscrupulous mortgage lenders. Specifically, she’s concerned about lenders selling reverse mortgages.
McCaskill is frustrated with companies sending misleading marketing materials that aim to rope elderly people into an expensive loan that can leave them penniless.
A reverse mortgage is a loan against your home that you don’t have to pay back as long as you live there. Unlike a regular mortgage, with a reverse mortgage, your debt rises and your equity shrinks.
Post from: Reverse Mortgage Loan Blog
McCaskill urges Nixon to go after scam reverse mortgage marketers
Full post here Reverse Mortgage Loan Blog
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What happens when a senior has equity in his home but can’t qualify for a reverse mortgage? A traditional line of credit you may say? But what if you have no real means of paying the HELOC back? Then you share a situation with 64 year old John Thiel.
“He didn’t qualify for a reverse mortgage because he didn’t have enough equity in his property, because the market value went down and because from one year to the next, his loan for $112,000 jumped to $121,000 for the payoff,” Dunbar said.
Dunbar said the value of Thiel’s home dropped 32 percent from last year, when he applied for a refinance loan in May 2007. The lower market value and Thiel’s age means the most he can get in a reverse mortgage loan is $70,406.
“In his situation, he could lose his house. Unless he can come up with $650 on a monthly basis, and that’s all but roughly $240 of his income,” Dunbar said.
Thiel’s story was told in the April 17 edition of the Record-Bee. He said despite community response to his story, not a drop of money has landed in a WestAmerica bank account named “Save our home” that he opened. Lake County Bee Record.
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Is it a good idea to raise mortgage limits across the country during the same time when home values are falling? Depends on which side of the financial aisle you live on? While conventional rates have increased, reverse mortgage rates still lag behind. That could be a good thing in that it will afford seniors and their advisers to become better versed in reverse mortgages and their uses.
While loan limits for conventional mortgages recently were raised with the passage of the Economic Stimulus Act of 2008, those seniors hoping to tap into additional home equity via the nation’s most popular reverse mortgage are stuck with the same loan ceilings — at least for now.
The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development, insures the Home Equity Conversion Mortgage program, which accounts for nearly 85 percent of the reverse market. The program has insured more than 240,000 reverse mortgages since 1990, while private jumbo reverse plans also have been available. Full Article.
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Real Estate Finance Entrpreneurs, listen up. I came across a great company that is built upon excellent management and has found shelter during the sub prime fallout.
If you’re a mortgage broker or mortgage banker who has dreamed of running a business, controlling your career or achieving financial freedom, you’re in the right place. 1st Metropolitan Mortgage offers all this and, whereas others in the top mortgage net branch companies treat you like a number, we will always treat you like a partner.
Who is 1st Metropolitan Mortgage?
Traditional mortgage net branching offers mortgage brokers and bankers some entrepreneurial opportunity. But 1st Metropolitan offers you MetroBranching, our own brand of mortgage net branch done the right way. It started with our belief in the power of the entrepreneurial spirit tempered by our understanding of the resources it takes to succeed. So we developed MetroBranching, to strike the delicate balance between solid infrastructure and generous empowerment. We believe that this balance at once supports and liberates each branch to conduct business in the most profitable way. We also believe MetroBranching is the idea behind the extraordinary success of 1st Metropolitan branches and the aggressive growth of the company itself.
- Acquired in 2002 by Empire Equity Group, Inc. The Empire Group of companies has earned the respect of the American financial community for over two decades. Through years of volatile economic fluctuations, Empire has gained in strength and size.
- Financially stable
- Long-established strategic alliances with Top National Lenders
- National brand with a sterling reputation for high standards/professionalism
- Reputation for integrity
Recognized industry leader featured & quoted in National Mortgage News, Origination News, American Banker, The Wall Street Journal, and others.
]]>It can be a tough, though excellent decision, to get a reverse mortgage loan however, it can be tougher in finding one that best suits your needs. Choosing the wrong product, can cost you thousands of dollars - money you could have spent on improving the quality of your life. To help your decision, here are some tips on what’s on offer and what each program offers.
There are three types of program available to seniors. We’ll start by taking a look at the most popular and then look at the more complex programs - sometimes called jumbo reverse mortgage loans.
HECM Reverse Mortgage Loan
This is by far the most popular program and account for over 90% of all loans. Its popularity is mainly because it is insured by the US government using the FHA insurance scheme. HECM stands for Home Equity Conversion Mortgages and is administered by the U.S. Department of Housing and Urban Development (HUD). This program is often called a HUD or FHA reverse mortgage.
Post from: Reverse Mortgage Loan Blog
]]>Falling home prices are putting pressure on homeowners across the country. What do the declining home values mean to your Revere Mortgage or your chances of getting one?
Many homeowners have seen their equity drop in the last year and it’s likely that this trend will continue in the near future. The question you may be asking yourself, and the question we are being asked quite often lately, is what effect the decline in the housing market will have on Reverse Mortgages. This question really actually breaks down into two seperate questions and they are both very important to those concerned. The first question here is what effect the declining home values will have on those trying to get a reverse mortgage, and the second question is what the effect will be on those who already have a reverse mortgage. Lets look at both these questions to see what this housing debacle might mean to you.
Post from: Reverse Mortgage Loan Blog
Declining Home Values - What Effect Will It Have On Reverse Mortgages?
]]>Home Equity Conversion Mortgage (HECM) figures released by HUD show that 9,663 HECMs originated during March 2008, down 11% from the record 10,913 HECMs endorsed in February
The 12-moving average fell from a record high of 9,249 in February to 9,147. On an annualized basis, 109,765 HECMs were originated in the twelve months ended March 2008.
Still, March 2008 represents the sixth best month ever for HECM output.
For more HECM statistics and analysis, visit our HECM database tool.
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