Wells Fargo braces for reverse mortgage growth

Posted by Charles D

November 25, 2008

wells fargo reverse mortgage lender

As the new limits on reverse mortgages settle amongst lenders, Wells Fargo is expecting to see a bump in applications, despite the current state of the economy. In an interview with McClatchy columnist VICKI LEE PARKER, we find a Wells Fargo Reverse Mortgage specialist giving his insights into the industry.

Brien J. Brandenburg, a reverse mortgage specialist for Wells Fargo Home Mortgage, said that some of his clients have been waiting at least three years for the higher limits in order to access more cash from their home equity.

“This is wonderful,” Brandenburg said. “The previous lending limits did not allow some seniors pay to off their first loan. The increased amount will help take that burden off their back.”

Brandenburg explained how someone would benefit under the new limits.

He gave the example of a 72-year-old person with a home valued at $400,000, for which he still owes $200,000.

Under the old limits, the most cash he could receive is $125,000, Brandenburg said. That’s not nearly enough to pay off his loan. However, under the new limits he could gain access to $255,000. That would be enough to pay off his loan and have $55,000 to spend on other expenses, he said. Full Story

Many financial experts, like Warren Buffett are not predicting the economy to turn around until 2009, so it’s good to find optimism in the reverse mortgage industry from anyone