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.
Written by charles dennis on May 1st, 2008 with no comments.
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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.
Written by charles dennis on May 1st, 2008 with no comments.
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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.
Written by charles dennis on April 12th, 2008 with no comments.
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Tips On Finding The Best Reverse Mortgage Loan,
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.
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Tips On Finding The Best Reverse Mortgage Loan
,Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on April 10th, 2008 with no comments.
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Declining Home Values - What Effect Will It Have On Reverse Mortgages?,
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.
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Declining Home Values - What Effect Will It Have On Reverse Mortgages?
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Written by News & Feeds on April 10th, 2008 with no comments.
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March HECM Production Falls From February Record,
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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Full post here Reverse Mortgage Information
Written by News & Feeds on April 10th, 2008 with no comments.
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Monthly HECM Activity Nears 11,000 Mark,
Home Equity Conversion Mortgage (HECM) figures released by HUD show that 10,913 HECMs originated during February 2008 - making this the highest monthly production on record. The previous record month was March 2007 when 10,888 HECMs were recorded.
More important than the record, however, is the fact that February was the second consecutive strong month for HECMs reversing a four-month spell which saw monthly HECM activity fall below the moving 12-month average. February’s strong performance also brought the 12-moving average to a new record high of 9,249. On an annualized basis this represents out put of 110,988 HECMs for the twelve months ended February 2008.
For more HECM statistics and analysis, visit our HECM database tool.
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Full post here Reverse Mortgage Information
Written by News & Feeds on April 10th, 2008 with no comments.
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January HECM Activity Rebounds,
Rebounding from four consecutive months of below average performance, the number of HECM reverse mortgages originated rebounded in January posting the fourth best monthly performance on record. The 9,957 HECM’s approved in January represented a 24% increase over the 8,007 HECMs endorsed in the prior month (December 2007) and a 13% jump over the 8,824 endorsements made in January 2007.
January’s strong numbers represent the first time in four months that monthly performance has exceeded the “12-month moving average”. This is significant since it may indicate a reversal of declining growth spurred by the subprime/housing market crisis. Borrowers may be realizing that if we are in for a long period of housing price decline, it may be wise to “lock-in” value now by taking out a reverse mortgage at the extremely low HECM interest rates that are now available.
On an annualized basis, 109,426 HECMs were endorsed in the twelve months ended January 2008 - the best twelve month period ever for HECM reverse mortgages. The twelve month figures through January 2008 represent a 23% increase over the 88,906 HECM endorsed during the twelve months ended January 2007.
For more HECM statistics and analysis, visit our HECM database tool.
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Full post here Reverse Mortgage Information
Written by News & Feeds on April 10th, 2008 with no comments.
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203b Loan Limits Remain Largely Unchanged,
At the start of each year, HUD/FHA does a comprehensive update to the single-family mortgage limits that set the maximum amounts that can be loaned under the HECM reverse mortgage program. In 2007, 203b limits were,for the most part, left unchanged and this is again the case for 2008. Only 151 of 326 limits throughout the country were changed in 2008. The vast majority of 203b limits currently in effect date from 2006, as the following table shows:
According to the recently released HUD Mortgagee Letter 2008-02, the explanation for not changing 203b limits is as follows:
The National Housing Act provides that the mortgage limit for any given area shall be set at 95% of the median house price in that area, as determined by the Department of Housing and Urban Development, except that the FHA mortgage limit in any given area cannot exceed 87% of the Freddie Mac loan limit, nor be lower than 48% of the Freddie Mac loan limit for a residence of applicable size. As a result of Freddie Mac’s announcement that there is no change in their mortgage limits, FHA’s floor and ceiling loan limits will remain unchanged.
The bottomline for potential reverse mortgage borrowers is that, for now, many will continue to be limited in the amount of cash they can access via a HECM reverse mortgage. There is a push in Congress to set a higher national loan limit, but it is unclear when this might become a reality.
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Full post here Reverse Mortgage Information
Written by News & Feeds on April 10th, 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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Written by News & Feeds on April 10th, 2008 with no comments.
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