Reverse Mortgage Insights from a Las Vegas Certified Reverse Mortgage Professional

Rick R. Rodriguez was interviewed by Reverse Mortgage Daily recently to offer his insights on the impact of rising interest rates to the reverse mortgage program.  The Federal Government recently increased interest rates once again which created a ripple effect throughout the mortgage industry.  Prior to October 2017, the reverse mortgage program experienced very little change from interest rate fluctuations.  However, since HUD made significant program changes in October 2017 the program is more susceptible to interest rate swings than ever before.  These swings are directly effecting the amount of equity that homeowners can qualify for under the program, which in some cases can prevent them from obtaining a reverse mortgage.

Reverse Mortgage Daily wrote a recent article titled "HECM Originators Feel Impact of Rising Rates", in which they interviewed Rick R. Rodriguez, a branch manager at Nationwide Equities in Las Vegas, NV.  One of his clients was in the process of using a…

Reverse Loans USA Opens in Las Vegas

One of the top 10 reverse mortgage companies in the nation is opening its doors in Las Vegas.  Rick Rodriguez and his partner, Jesse Brewer, will be the branch managers in charge of building the Las Vegas office.  Reverse Loans USA, a division of Nationwide Equities, will provide mortgage products and services to the greater Las Vegas area, but will also focus on serving northern Nevada as well.

Rodriguez, who is the first person in Southern Nevada to obtain the designation of a Certified Reverse Mortgage Professional (CRMP), is extremely excited and confident at the opportunity to serve his native Las Vegas residents. "Our goal is to bring reverse mortgages directly to local residents, so that they don't have to go outside of the state looking for a reverse mortgage lender.  As Certified Reverse Mortgage Professionals (CRMP), we will be better equipped to serve homeowners who need to thoroughly understand what a reverse mortgage is and how it can be utilized for their speci…

Rick Rodriguez Offers Insights in Reverse Mortgage Daily

The reverse mortgage industry's main source of news, Reverse Mortgage Daily (RMD), recently published an article detailing some of the preferred educational resources from some of the top reverse mortgage specialists in the industry.  Rick Rodriguez, Certified Reverse Mortgage Professional, who has been specializing in reverse mortgages since 2005 was interviewed by RMD for his insights.

In the article, Rodriguez states that most consumers have already done research on reverse mortgages and are primarily looking to speak with a reverse mortgage professional to go over any concerns and dispel any myths.  He utilizes company resources and materials to provide additional information to consumers, but if he senses that the they are in need of a bit more confidence in the product itself, he points them to third party resources such as U.S. Department of Housing and Urban Development or National Reverse Mortgage Lenders Association, as well as to texts by Wade Pfau or Barry Sacks. 


3 Unknown Secrets About Reverse Mortgages

What a reverse mortgage is and how it works continues to be a mystery to many, but here we will begin to uncover some of the secrets about one of the most misunderstood loan programs that has ever existed. 

1. A reverse mortgage can be used to finance the purchase of a home.

As an alternative to purchasing a home with cash or taking on a mortgage with payments, a reverse mortgage can help to preserve cash for retirement and expand the purchasing power for a new home.  A one-time cash payment is made at closing, the reverse mortgage finances the remainder of the purchase price, and the buyer is required to live in the home as their primary residence and pay the property taxes, maintenance fees and insurance.

2. A reverse mortgage credit line can pair well with retirement planning strategies.

Some financial planners are recommending to their clients to take out a reverse mortgage line of credit to have on standby throughout retirement.  They work like home equity lines of credit (HELOCs)…

Reverse Mortgage Basics: The Loan Process

The perception of obtaining a mortgage loan is like handing your car over to the mechanic and waiting anxiously in the waiting room for the dreaded news to be delivered.  "That'll be $$$$!" Part of the dread is that you have limited knowledge on cars and you can't see step by step what the mechanic is doing.  Well, let's remove the veil and allow you to take a look under the hood of the reverse mortgage loan process.

The first step is awareness and education of the reverse mortgage loan, which is now easily attainable either through the TV, radio, or your own research.  We recommend meeting with a qualified reverse mortgage professional who has a vast amount of experience and knowledge with reverse mortgages.  This is where you learn about specific numbers, what you qualify for, and receive an analysis of your particular situation. Why go to someone who doesn't specialize in this product and has maybe never put one together?  It's like going to your prim…

Reverse Mortgage Basics: Qualifying for a Reverse Mortgage

What does it take to obtain a reverse mortgage?  Whether you are looking to use a reverse mortgage to either refinance or buy, there are basic requirements that every borrower must meet.  Here they are:
Borrower must be at least 62 years of ageProperty must be your primary residence Property must be maintained routinely and meet FHA appraisal inspectionA minimum of 50% equity needed for a refinance or 50% down payment needed for a purchase (note:  these are average percentages and vary by age of youngest borrower)  In addition, every borrower(s) must pass the Financial Assessment as required by the Housing and Urban Development department (HUD).  The Financial Assessment requires each borrower(s) to have sufficient income to meet monthly housing and credit expenses, as well as a satisfactory 24 month payment history of those said expenses.  There is no minimum FICO score required, and there is some flexibility with each borrower's scenario and the opportunity to explain if any ext…

Reverse Mortgage Basics: Reverse Mortgage Insurance

A common question is why do I have to pay mortgage insurance on a reverse mortgage? The answer is protection.  For the borrower, a federally-insured reverse mortgage comes with the benefit that you will receive loan payments as outlined by the terms of the loan, and you will never owe more than your home is worth. This benefit is guaranteed by the Federal Housing Administration through its Home Equity Conversion Mortgage program, which is the primary reverse mortgage program available on the market today.

In order to be protected and receive that guarantee, borrowers pay for it through reverse mortgage premiums.  There is a one-time upfront mortgage insurance premium at the time of closing the loan, as well as an annual insurance premium which are both paid to FHA.

Currently, as of the date of this article, the upfront mortgage insurance premium is a flat 2% of the appraised value of the home or the FHA maximum lending limit of $679,650, whichever is less.  The ongoing annual premium…