In an effort to remain competitive in today’s market, we have eliminated our monthly service fee on the fixed rate reverse mortgage. Traditionally, this fee would range from $25 – $30. (more…)
Archive for the ‘Reverse Mortgage’ Category
Fixed Rate Service Fee is Now $0
Thursday, March 18th, 2010Congress Extends $625,500 HECM Loan Limit Through 2010
Friday, October 30th, 2009By NRMLA
The continuing resolution (CR) that was passed by Congress yesterday and is now headed for the President’s signature extends the $625,500 national loan limit for HECM through calendar year 2010. Although the CR is a temporary measure providing funding thru 12/18/09 to allow a little more time for the appropriations bills to be completed, Congress was asked to act now to make sure that the marketplace is not disrupted by uncertainty about the continuation of the higher forward mortgage loan limits that were enacted in the President’s economic stimulus package back in February. (more…)
Reverse Mortgages – Does My Home Need to Be Free and Clear?
Tuesday, September 29th, 2009Recently I originated a loan for a gentleman, Mr. Smith for the purpose of this article, who at first was very evasive about what he owed on his home. When Mr. Smith applied on my website he input that his home was free and clear. (more…)
HECM Principal Limit To Decline by 10%
Wednesday, September 23rd, 2009Breaking News from Peter Bell, NRMLA President:
I [Peter Bell] just got off a phone call with FHA Commissioner David Stevens and HUD Assistant Secretary for Congressional Relations Peter Kovar, who called to tell me that HUD has posted a Mortgagee Letter implementing the 10% haircut in principal limit factors, effective for all loans on which applications are taken on or after October 1, 2009. (more…)
Death, Reverse Mortgages and Heirs
Tuesday, July 7th, 2009We all know that there are only two guarantees in life: death and taxes. Seeing as none of us are going to get out of here alive, it seems appropriate to discuss what happens when the last surviving spouse passes away when a reverse mortgage is secured by the property.
Treasury Based Reverse Mortgages Going Extinct?
Thursday, June 25th, 2009
Fannie Mae announced June 1, 2009 that effective September 1, 2009, they will no longer offer reverse mortgages based on the CMT or Constant Maturity Treasury. They will continue to offer the LIBOR (London Interbank Offered Rate) index.
Reverse Mortgage Rate Costs
Wednesday, May 6th, 2009In our previous article, “My Reverse Mortgage Costs How Much,” we explored all the upfront fees involved in a reverse mortgage. Now, of equal importance, we explore continual costs that are accrued during the life of a reverse mortgage. These costs include the interest rate, the ongoing HUD Mortgage Insurance Premium (MIP), and the monthly service fee.
My Reverse Mortgage Costs How Much?
Monday, April 6th, 2009As a short term financing tool, reverse mortgages are an expensive proposition. However when used long-term, those expenses are spread throughout the life of the loan, making a reverse mortgage a viable solution to supplement retirement income, pay off a mortgage and have extra cash available to enjoy life to the fullest without the worry of mortgage payments. So, what costs are involved and why do the fees seem so high? (more…)
The Reverse Mortgage Process Explained
Wednesday, April 1st, 2009Picture this… you’re a senior homeowner and nearly every time you go to your mail box, you get 1-5 solicitations for a reverse mortgage. You keep all the postcards and letters handy in case you decide to make a decision to proceed with a reverse mortgage. You’re starting to learn a lot about the program just from all the direct mail pieces you have received. Your phone is starting to ring almost daily with reverse mortgage telemarketers. You hear the buzz on the news and with your friends that reverse mortgages have created. You see TV commercials with Robert Wagner, James Gardner, and Pat Boone among many others. You now have a stack of solicitations higher than three Los Angeles phone books and your interest has peaked. You know you want to start to look into a reverse mortgage but you don’t know what steps are involved or how to you proceed with a reputable company? Yes you do have hundreds of mail pieces, but what company will truly offer you the best service and best fee structure. (more…)
Misuse of Reverse Mortgage Terminology
Wednesday, March 4th, 2009I recently read an interesting article by James E. Veale of Security One Lending on Reverse Mortgage Daily titled “Are Reverse Mortgages Really Income?” The main thrust behind the article is that several reverse mortgage professionals are misusing the term “income” to describe the proceeds of a reverse mortgage. (more…)
FHA Officially Raises HECM Loan Limit
Wednesday, February 25th, 2009Mortgagee Letter 2009-07 Raises Limits to $625,500
The U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-07, which officially raises the national limit for Home Equity Conversion Mortgages from $417,000 to $625,500 for the remainder of 2009.
With money running out, he cosiders a reverse mortgage
Tuesday, February 24th, 2009Great article from the Wednesday, February 4, 2009 Sacramento Bee. In the article Rashida Lilani recommends as a way to increase options, that seniors go through a broker when obtaining a reverse mortgage versus a bank. She also advises to “do your homework.” MLS Reverse Mortgage advises the same. A reverse mortgage is a major life changing decision that shouldn’t be taken lightly. (more…)
New Reverse Mortgage Loan Limit: $625,500
Wednesday, February 18th, 2009The economic stimulus bill signed into law yesterday (2/17/09) by President Obama will raise the single national loan limit for HECMs (Home Equity Conversion Mortgage) to 150% of the Freddie Mac loan limit. That would create a HECM limit of $625,500. Currently, this limit is only applicable for loans made during the balance of 2009. (more…)
Final Version of Economic Stimulus Package Raises HECM Loan Limits to $625K
Friday, February 13th, 2009NRMLA (reversemortgage.org)
NRMLA is pleased to report that the compromise package approved by the House-Senate conference committee yesterday does indeed set the HECM loan limit at 150% of the Freddie Mac limit, which would put it at $625,500 — for the balance of 2009. (more…)
Stimulus Bill Compromise Includes Higher HECM Loan Limit
Thursday, February 12th, 2009NRMLA – reversemortgage.org
NRMLA is pleased to announce that we have learned that the compromise package emerging from the House-Senate conference committee includes the House language setting the HECM loan limit at 150% of the Freddie Mac limit, which would put it at $625,500 — for the balance of 2009 only. (Congress would have to act on it again before this year is out to extend it beyond ‘09.) (more…)
Myths, Pros and Cons of HECM Reverse Mortgages
Tuesday, February 10th, 2009Mike Borba (President Borba Investments, Inc. dba MLS Reverse Mortgage)
First and foremost; the bank does not, nor do they want to own your home. So why do so many people believe this? Prior to FHA getting involved in 1988, the lenders would take an equity position in their Borrowers homes. That practice has resulted in unfavorable feelings towards today’s reverse mortgages. The Federal Housing Administration (FHA) has set the new standards and guidelines for HECM reverse mortgage loans and their involvement has produced a safe, well thought out and balanced loan for Seniors. Look below to find some of the pros and cons of reverse mortgages.
Forclosures Have Met Their Match… Reverse Mortgages
Friday, February 6th, 2009Josh Borba, Senior Reverse Mortgage Advisor
Foreclosure filings were reported on 2.3 million U.S. properties in 2008, an increase of 81 percent from 2007 and up 225 percent from 2006, according to the RealtyTrac U.S. Foreclosure Market Report released January 15, 2009. The soaring number of forclosures have sent ripples through the housing and banking industry with the affects being felt by millions. (more…)
What is the TALC? And Why Should I Care?
Wednesday, February 4th, 2009When you apply for a reverse mortgage, among all the pages of disclosures that you come across, you will find a disclosure called the TALC or Total Annual Loan Costs. Well, what is this form and why is it important?
Understanding Reverse Mortgages
Monday, February 2nd, 2009Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.
House Passes Stimulus Bill with Loan Limit Increase
Thursday, January 29th, 2009We are pleased to report that the economic recovery bill passed by the U.S. House of Representatives last night includes the provision we reported to you last week that would set the single national loan limit for the HECM program at 150% of the Freddie Mac loan limit. Currently, the Freddie Mac limit is $417,000, so this bill would establish the HECM limit at $625,500.
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Top Reverse Mortgage Markets Are in Florida
Tuesday, January 27th, 2009Three of the top 10 markets in the country for reverse mortgages are located in Florida, according to an analysis of government data conducted by Reverse Market Insight. (more…)
HECM Loan Limit Increase Included in Stimulus Plan
Tuesday, January 27th, 2009We are pleased to announce that the draft of the economic recovery bill released by the House of Representatives late yesterday contains a provision, inserted in response to a request that came jointly from NRMLA and AARP, that would set the single national loan limit for HECM at a higher level than $417,000–for the balance of 2009.
Face to Face Meeting or Not
Monday, January 26th, 2009Michael Borba (President Borba Investments, Inc. dba MLS Reverse Mortgage)
Some companies would like you to believe that these specialized loans are so intricate and confusing that Seniors can’t decide what to do without having their hands held. What am I referring to?
FHA Authorizes HECM for Home Purchase
Monday, January 26th, 2009Written by: Michael Borba (Owner/Broker, MLS Reverse Mortgage, Auburn, Ca)
Beginning January 1, 2009 FHA will began insuring reverse mortgage loans for Seniors to purchase homes. Reverse mortgages have traditionally been available for refinance loans in the past, provided the Senior resided in the home.