HECM and New Construction

FHA relaxes the requirements on Certificate of Occupancy requirements! September 29, 2017 FHA said they would now allow lenders to take applications for a HECM (reverse mortgage) without a certificate of occupancy and before the completion of reverse mortgage counseling. This is a long awaited change and a very good change. As virtually any other […]

Mortgage Insurance and Principal Limit Factors (think max. loan amount) changes

Mortgagee Letter 2017-12 Effective October 2, 2017 Mortgage Insurance and Principal Limit Factors (think max. loan amount) changes HUD “sprang” this one on the industry, as no one was expecting it. And HUD has made some very significant changes in the HECM program. First, they have changed the mortgage insurance premiums. Reverse mortgages require an […]

The Cost of Retirement

A retirement confidence survey asks seniors how much they think they’ll need to live comfortably in retirement. According to the 2017 Retirement Confidence Survey done by the Employee Benefit Research Institute and Greenwald and Associates, here are the results:   21% – Under $250,000 15% – $250,000 – $499,999 27% – $500,000 – $999,999 13% – […]

NYT: Older Americans More Open to Mortgage Debt, Despite Obstacles

Reverse mortgage professionals have long grappled with homeowners’ later-in-life resistance to assuming more debt. After all, many homeowners aged 62 or older have spent a good chunk of their adult lives attempting to rid themselves of the purchase mortgage that allowed them to buy their family homesteads. But those attitudes are changing, and the New […]

Seniors’ Home Equity Rises 3% in Q1

U.S. homeowners aged 62 and older saw a 3.1% increase in total home equity between the fourth quarter of 2016 and the first quarter of 2017, driven by rising home values. These older American homeowners sat on $6.3 trillion in total home equity at the end of the first quarter, according to the National Reverse […]

Retirement Professionals See Rising Reverse Mortgage Potential in Gray Divorce

Reverse mortgage professionals have recently been touting the use of Home Equity Conversion Mortgages for clients that may be experiencing what has been coined “gray divorce” or “silver divorce” — divorce among the retired population. While divorce among Americans overall has fallen in recent years, from 8.2% in 2000 to 6.9% in 2014 according to […]