In an effort to combat fears over the costs of reverse mortgage, FHA is proposing a variation of the traditional reverse mortgage product aimed at seniors looking for options to access home equity with lower costs.  The proposed HECM Saver will have a upfront mortgage insurance premium (MIP) of .01% of the maximum claim amount [...]

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As China tackles its population growth problems between shortages of housing and lack of affordable housing options, the China Post is reporting that the Chinese government anticipates rolling out reverse mortgages in 2012 to deal with a growing population that needs options to age in place.  The program will be available to citizens over 65 [...]

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Who says Boomers aren’t interested in reverse mortgages?  The reverse mortgage industry is seeing trends that show the typical age of a reverse mortgage borrower decline more rapidly than in previous years.  Historically, the average age of reverse mortgage borrowers has trended lower over the years since the inception of the program but that trend [...]

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The U.S. Department of Housing and Urban Development (HUD), after nearly 2 years of studying and revisions, recently published new procedures governing the process for seniors who are counseled for federally insured Home Equity Conversion Mortgages (HECMs).  The new procedures provides more detailed information which must be provided ahead of the counseling session, what must [...]

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The Senate passed the Dodd-Frank Regulatory Reform Bill and is sending it to the President later this week for his signature but that will be just the beginning of how the new law will affect consumer finance.  The new Consumer Financial Protection Bureau has been tasked with authority to regulate and enable safe guards to [...]

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How do you trigger a default on a reverse mortgage?  One of the ways to trigger a default is failure to pay taxes and insurance on the property that secures the reverse mortgage and the fear of headline risk is giving some lenders and servicers pause before declaring defaults on seniors.  According to a recent [...]

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The Obama administration has been nothing but bold with its determination for healthcare and financial services reform but is that audacity too much for the fight against homelessness?  Late last month, the United States Interagency Council on Homelessness released a comprehensive federal plan that will serve as a roadmap to prevent and end homelessness by [...]

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Mortgage rates hit new lows this week for conventional financing with the national average for a 30 year fixed rate mortgage reaching 4.74% APY according to Bankrate.com.  The rate is the lowest in the 25 year history of Bankrate’s weekly survey.  According to the National Bureau of Economic Research, rates on FHA-insured mortgages averaged 4.71 [...]

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Will the consumer protections proposed by the new financial services reform bill make a difference for seniors and Baby Boomers and their housing decisions and personal finances?  Or has too much pain been inflicted already?  Lawmakers expect to deliver the final version of the Dodd-Frank Wall Street Reform and Consumer Protection Act to President Obama prior [...]

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Courtesy of Reverse Mortgage Daily While members of the US Senate and House of Representatives meet to negotiate the final version of Wall Street reform legislation, Senators Claire McCaskill (D-MO) and Herb Kohl (D-WI) recently sent a letter to the members of the conference committee urging them to preserve language they feel will improve consumer [...]

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Is the government’s Home Affordable Modification Program (HAMP) living up to its expectations?  According to a recent report from Fitch Ratings Ltd., it appears that most borrowers who get lower mortgage payments under a federal government program will default within 12 months.  HAMP provides incentives for servicers that modify mortgage payments to within 31% of [...]

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Since the credit crunch of 2008-2009, almost all lenders in the reverse mortgage market stopped originating proprietary reverse mortgages on until now.  Last week, Generation Mortgage Company announced the release of a new jumbo reverse mortgage loan for homes valued up to $6 million. The new product is eligible for homes valued between $500,000 and [...]

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