Today, HUD issued Mortgagee Letter 2011-29 which extends the existing reverse mortgage loan limits of $625,500 through December 31, 2011. In an earlier blog post, we spoke about a possible reduction in reverse mortgage loan limits. A reduction is still a possibility. So, for those homeowners with higher home values who are on the fence …
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Ever since the first day our company started originating reverse mortgages, we’ve been asked the question; why not just get a HELOC instead of a reverse mortgage? In this article we explore benefits and drawbacks of reverse mortgages and HELOCs to help guide the consumer to make an educated decision about which loan type, if …
The American Recovery and Reinvestment Act (ARRA) of 2009 set our current reverse mortgage lending limits at $625,500. This temporary increase in the HECM loan limits is set to expire September 30, 2011. The loan limits beginning on October 1, 2011 for HECM loans are currently under review by the Federal Housing Administration (FHA). FHA …
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It’s rather fitting to talk about financial independence on the day our beautiful country gained its independence. The Fourth of July has become synonymous with fireworks, parades, barbecues, family, friends and more, but we want to use this day to help senior homeowners find a way to achieve financial independence. In 1988 Ronald Reagan signed …
Wells Fargo, the leading originator of reverse mortgages, announced today that they will discontinue offering Home Equity Conversion Mortgages (HECM). This comes after their March 1, 2011 announcement that they were exiting the wholesale reverse mortgage business. There is a lot of speculation as to why Wells Fargo reverse mortgage would make this move. In …
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The last article we wrote about reverse mortgage pros and cons was in February of 2009. Since then, there have been a lot of changes, both good and bad, that we feel need to be addressed. 2010 was the year of regulation of the mortgage industry coupled by falling home prices. Now we’re half way …
Suze Orman on her CNBC show recently responded to a viewer question by stating that a reverse mortgage is a better option than selling stocks. During the segment, a caller stated that his 85 year old father had been liquidating stocks over the past few years to pay for larger ticket items, including the upkeep …