Earlier this month, the Federal Housing Administration (FHA) released new guidance for borrowers and lenders on handling issues associated with delinquent property taxes and unpaid hazard insurance premiums. Failure to pay property taxes and insurance on reverse mortgage constitutes a default where the lender may either make those payment from reverse mortgage proceeds or advance […]
Category: Reverse Mortgages
The Department of Housing and Urban Development (HUD) recently announced that it is distributing nearly $73 million dollars in home counseling grants to over 500 national, regional and local organizations. The grants are an increase of $13 million or 22 percent over last years funding levels. HUD and the Obama Administration have placed a strong […]
As pessimism among retirees continues to grow, many are looking at ways to make ends meet in retirement and are finding reverse mortgages as a necessary alternative to support themselves. According to a new study entitled “The Retirement Abyss: America’s Seniors’ Search for Security” , one-in-four seniors believe they will not be able to cover […]
Declines in home prices and uncertainty in the mortgage market have brought reverse mortgage production down significantly in 2010. Data released from the Department of Housing and Urban Development shows that during the fiscal year of 2010 which ended September 30, shows that 79,096 reverse mortgages were endorsed during 2010, down 31.1% from same period […]
The Federal Housing Administration (FHA) officially announced a new modified version of its Home Equity Conversion Mortgage (HECM) product last week. The HECM Saver is an a second reverse mortgage option for the purpose of lowering upfront loan closing costs, for homeowners who want to borrow a smaller amount than what would be available with […]
The reverse mortgage industry continues to face challenges and one of its more recent issues has been the treatment of borrowers who have defaulted based upon failure to pay their property taxes and insurance on their homes. The Department of Housing and Urban Development’s Office of Inspector General recently released a new report that states […]
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 […]
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 […]
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 […]
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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