The Best Reverse Mortgages

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

On Tuesday August 29th, 2017, the Department of Housing and Urban Development announced one of the biggest changes that our reverse mortgage industry has seen.  Their plans are to change the insurance premiums that are charged upfront at closing, as well as decrease the ongoing annual insurance premium from 1.25% to .5%.  The upfront premium will now be 2.0% for all, whereas before it was either .5% or 2.50% depending on loan to value amounts.  In addition, the biggest felt change will be the reduction of cash that people will be able to access, which is reported to be declining from an average of 64% to 58%.  Note that these are just average percentages, as it does vary depending on one's age.  These changes are set to take effect for all new reverse mortgage loans with case numbers obtained on or after October 2nd, 2017. Read more about this upcoming change by clicking here . Contact Rick R. Rodriguez for more information Rick R. Rodriguez Certif...

The Federal Deposit Insurance Corporation ( FDIC ) noted in its most recent newsletter that the Home Equity Conversion Mortgage (HECM) program has gone through a lot of changes since the FDIC last commented on the program back in 2013.  As pointed out in the article, the reverse mortgage program has become even more attractive with the new provision to protect non-borrowing spouses who have not yet reached the age of 62.  "The U.S. Department of Housing and Urban Development (HUD) now provides a mechanism for an eligible non-borrowing spouse to stay in the home," said Andrea Riche, and FDIC program manager.  Previously, HUD or the private lender was entitled to take possession of the house and in most cases evict the surviving spouse if he or she did not have the means to pay the reverse mortgage balance that was left behind by the borrowing spouse. Read the entire article here . For more information on reverse mortgages and other related topics contact: Rick R. R...

The Department of Housing and Urban Development (HUD) recently released a memo to clarify how much counseling agencies may charge for Home Equity Conversion Mortgage (HECM) counseling services.  The memo references Mortgagee Letter ML 2011-09 which states that there is no cap or maximum amount that can be charged for HECM counseling.  It goes on to say that a fess of $125.00 is neither a maximum nor a minimum allowable charge.  HUD requires that counseling agencies must be able to demonstrate how the fee charged to clients was calculated and what considerations contributed to the establishment of the fee.  HUD will conduct Performance Reviews in which agencies will be required to have this information available. 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

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

A recent article in The Augusta Chronicle states that reverse mortgages work best for consumers who are settled in their homes and advises consumers to take the time to understand the product.  The article provides the basic requirements of the program, and the Department of Housing and Urban Development ( HUD ) website to obtain a list of HECM counselors who will provide counseling for free or at a very low cost.  The article goes on to say, "consider all the factors involved, learn what resources are available to make an informed decision, and don't be swayed by celebrity spokespersons until you have all your questions answered".  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 Department of Housing and Urban Development (HUD) released Mortgagee Letter 2014-22 on November 10, 2014 to announce the implementation of financial assessment.  The financial assessment for reverse mortgages will take effect for all case numbers issued on or after March 2, 2015.  According to HUD, "the mortgagee must evaluate the mortgagor's willingness and capacity to timely meet his or her financial obligations."  The idea from HUD's standpoint is to make the HECM a safer product.  However, many have raised the question whether HUD is considering the impact these changes will have on low to moderate income level households.  There is concern in the reverse mortgage industry that many senior homeowners will not qualify and will be held back from an opportunity to improve their lives.   The original intent of the HECM was to help our seniors improve their financial situation, and it seems that these changes will take away from the spirit.  Stay...

The Department of Housing and Urban Development (HUD) has issued their June Scorecard and it is signaling that a healthy housing recovery is underway.  As a result of double-digit gains in home sales, declining foreclosures and strong home equity growth in May, HUD states these are all signs of a healthy recovery.  These gains along with recent changes to the FHA Reverse Mortgage Principal Limit Factors are helping senior homeowners qualify for larger benefits under the HECM program.

Starting August 4, 2014, reverse mortgages must list both spouses on the loan, so the surviving spouse won't have to worry about facing foreclosure.  This change stems from a recent court ruling requiring HUD to make guideline changes.  The loan qualification will still be based on the age of the younger spouse.  

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

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.