The Best Reverse Mortgages

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 Barr...

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 ongoi...

The number of reverse mortgages done in the month of January 2018 was 6,313, which was an increase of 32.5 percent month over month from December 2017, according to the latest data from Reverse Mortgage Insight .    This also marks the best month for the reverse mortgage industry since March 2011.  The increase can be attributed to changes made by the Department of Housing and Urban Development (HUD) in October 2017, which caused a rush of applications by homeowners who wanted to secure larger principal limits and equity proceeds.  For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional (CRMP) NMLS# 473353 Toll Free  (877) 500-0454 Local (702) 460-6222 www.reversemortgagecertifiedprofessional.com

The Department of Housing and Urban Development (HUD) has increased the lending limit for federally backed reverse mortgages effective January 1, 2018.  The new maximum claim amount is $679,650, which is up from $636,150 from the previous year.  This is the second year in a row that HUD has increased the lending limit on the FHA reverse mortgage. For more information on HUD's new limits, read HUD's Mortgagee Letter here. Contact Rick R. Rodriguez for more information Rick R. Rodriguez Certified Reverse Mortgage Professional (CRMP) NMLS# 473353 Toll Free  (877) 500-0454 www.reversemortgagecertifiedprofessional.com

A recent article in Reverse Mortgage Daily states that "the Department of Housing and Urban Development (HUD) has extended the implementation date deadline for Home Equity Conversion Mortgages (HECMs) in default due to unpaid property charges."  In HUD's Mortgagee Letter 2015-11 , the Federal Housing Administration (FHA) is permitting the mortgagee to take a one time extension to submit a due and payable request through no later than Oct. 20, 2015 for tax and insurance defaults on or after April 23, 2015.  Read the entire article here . For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional, CRMP NMLS# 473353 Toll Free (877) 500-0454 Local (702) 460-6222

The Federal Housing Administration  (FHA) has rescheduled the much anticipated financial assessment for reverse mortgages to a later date due to technical difficulties.  The new date has not been set, but FHA says it could fall between 30 to 60 days of the original March 2 effective date. The reverse mortgage industry and HECM (home equity conversion mortgage) counseling agencies had been experiencing an increase in volume over the past few weeks due to many applicants looking to secure their reverse mortgage before the changes.   HUD stated in its Mortgagee Letter 2014-22 that lenders will be required to evaluate the willingness and capacity of a borrower to timely meet his or her financial obligations including tax and insurance with the property. For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional, CRMP NMLS# 473353 Toll Free (877) 500-0454 Local (702) 460-6222

The Federal Housing Administration ( FHA ) has recently issued new guidance for the Home Equity Conversion Mortgage ( HECM ) program to allow lenders the option to delay foreclosure of non-borrowing spouses.  This new policy change comes on the heels of a recent change back on August 4, 2014 in which non-borrowing spouses were granted foreclosure protection for all case numbers assigned after August 4th.  The latest change is for all case numbers issued prior to the aforementioned date.  Click here to read more. For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional, CRMP NMLS# 473353 Toll Free (877) 500-0454 Local (702) 460-6222

What happens when a reverse mortgage homeowner passes away? Well, the heirs must communicate their plans for the home to the loan servicer.  FHA requires loan servicers to send a letter stating that the balance of the loan is due, and the heirs or estate must respond within 30 days or else foreclosure proceedings may be initiated.  The advice I give to all my clients is that being proactive is the best practice.  First, the heirs should be aware that there is a reverse mortgage in place which requires involvement and communication amongst the family.  Secondly, when the reverse mortgage borrowers have passed, the heirs should contact the servicer as soon as they can to avoid any possible lapse in time or potential miscommunication with the servicer.  The Wall Street Journal recently published an article discussing this exact topic and tips to avoid surprises with your reverse mortgage.  Read the full article here . For more information on reverse mortga...

Find out everything you need to know about reverse mortgages from the comforts of your home.  We have representatives on call nationwide who will meet with senior homeowners in person to help them better understand the reverse mortgage process.  Homeowners age 62 or older who have equity in their homes and occupy the property may qualify for FHA's Home Equity Conversion Mortgage (HECM).  The HECM reverse mortgage is the most common and will allow a senior to withdraw cash from their home in the form of a lump sum, line of credit, or a fixed monthly amount or a combination of any of the three.  The HECM for Purchase program will allow a senior to purchase a primary residence with cash on hand or from a recent sale that will cover the difference between the HECM proceeds and the sales price plus any closings costs.  This program can help seniors not only better qualify for their desired home, but also help them retain more assets for retirement use. For more i...

U.S. News just published an article detailing the recent changes made by FHA to revamp the reverse mortgage program.  FHA Reverse Mortgages , also known as HECM's (Home Equity Conversion Mortgage), made changes to address the default issue for some borrowers.  Read the entire article by clicking here . For more information on reverse mortgages and other related topics contact: Rick R. Rodriguez Certified Reverse Mortgage Professional, CRMP NMLS# 473353 Toll Free (877) 500-0454 Local (702) 460-6222

Seniors who are looking to purchase a home can use a FHA reverse mortgage to help them qualify and keep more cash in their pocket.  The HECM For Purchase program is designed to keep more assets in hand by not requiring monthly payments and giving seniors another option instead of purchasing a home for cash.  The program will finance the majority of the purchase price and has less qualifying conditions than a traditional forward mortgage.  The HECM For Purchase is being utilized as a retirement planning tool to increase cash flow and investment opportunities.  Contact Rick Rodriguez for a free brochure on the program. 

HUD has issued an additional mortgagee letter clarifying the September 30th changes. The mortgagee letter is available for all to read at:  http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee Contact Rick Rodriguez at Proficio Mortgage to obtain additional information, as well as an estimate on the different options available. Rick Rodriguez Production Manager Proficio Mortgage, a subsidiary of Proficio Bank 877-576-3783 phone rrodriguez@proficiomortgage.com

On October 1, 2013, HUD will be tightening up guidelines on reverse mortgages to help sustain the program for the future for both FHA and consumers.  The goal is to further protect consumers by helping them manage their funds better, and to help FHA get out of an operational deficit with the reverse mortgage program.  Read the entire article:  http://www.nytimes.com/2013/09/07/your-money/tighter-rules-will-make-it-harder-to-get-a-reverse-mortgage.html?_r=1&pagewanted=all&  

HUD held an industry wide conference call to go over the upcoming changes to reverse mortgages and open up the line to questions from lenders around the country.  Starting on October 1, 2013, the reverse mortgage program will offer a reduced FHA mortgage insurance of .5% when loan disbursements are limited to 60% of the principal limit or charge a 2.50% FHA mortgage insurance for disbursements that exceed 60%.  For a review of the HUD changes, visit:   http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

HUD recently announced that it will be tightening up guidelines on the HECM (Home Equity Conversion Mortgage) Reverse Mortgage program.  The new guideline changes are set to begin on October 1st, 2013 and will help to strengthen the program for the long term.  Learn about the changes and obtain a reverse mortgage guide on the pros and cons by contacting:  Rick Rodriguez, Production Manager, Proficio Mortgage, (877) 576-3783, rrodriguez@proficiomortgage.com, www.reversemortgageproficiobank.com. The Chicago Tribune recently posted an article regarding the changes at:   http://articles.chicagotribune.com/2013-09-04/business/chi-hud-reverse-mortgages-20130904_1_mortgage-rules-mortgage-insurance-premiums-hecm

Tighter rules for reverse mortgages are coming soon.  Now that Congress has given FHA the authority the make changes to the program, FHA is implementing new procedures to help strengthen the program for the future.  Read the Wall Street Journal article at:  http://online.wsj.com/article/SB10001424127887323608504579023100143165032.html?KEYWORDS=reverse+mortgage

The reverse mortgage industry will experience yet another change on April 1, 2013 when the Standard Fixed Rate Product will be eliminated.  This is nothing new to the reverse mortgage professionals who have been in the industry for the past 10 years.  Like the countless of changes before, this upcoming one will be handled with the same grace that we have always demonstrated.  The reverse mortgage program will still be available, and there will be plenty of choices to meet varying needs.  For a complete list of the most current reverse mortgage options available today, contact Rick Rodriguez, Reverse Mortgage Specialist #473353, at 877.576.3783 or www.proreverse.com/RickRodriguez. www.proreverse.com/rickrodriguez  

HUD announced on January 30, 2013, that the FHA standard fixed rate reverse mortgage program will be eliminated.  The change will take effect on April 1, 2013 for all new FHA case numbers assigned.  For those who have chosen the standard fixed rate option and are able to secure a case number prior to April 1, they will have until July 1, 2013 to complete their loan. If you are interested in obtaining a copy of HUD's Mortgagee Letter or more details on the changes to come,  visit www.proreverse.com/rickrodriguez or contact Rick Rodriguez, Production Sales Manager at Proficio Mortgage at 877-576-3783.