To expand on our previous post about requirements for non-HECM lien seasoning, we have some frequently asked questions below: 1. If I took out a loan in the past 12 months but drew less than $500 at closing or through draws after closing, can the lien be paid off through closing? Yes.
Reverse Mortgage Seasoning Requirements (for Existing Non-HECM Mortgage Liens)
Change is in the air. Mortgagee Letter ML 2014-21 spelled out a few new changes to the HECM reverse mortgage program. The one change garnering all of the attention has been financial assessment, which starts 3/2/15, however the change to the reverse mortgage seasoning requirement deserves some attention as well and it begins much sooner; 12/15/14. Effective for case …
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Reverse Mortgage Financial Assessment Begins March 2, 2015
After much anticipation, HUD has released guidance for reverse mortgage financial assessment. This new change will affect all borrowers whose case numbers are assigned on or after March 2, 2015. HUD states “the purpose of financial assessment is to evaluate a mortgagor’s willingness and ability to meet his/her financial obligations and to comply with the …
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Reverse Mortgage Policy Changes Increase Principal Limits and Protect Non-Borrowing Spouses
If you have been considering accessing the equity in your home with a Home Equity Conversion Mortgage (HECM) loan, now may be a great time to act. A recent policy change may mean that you can qualify for more loan proceeds. HUD recently released Mortgagee Letter 2014-12 which included new Principal Limits Factors (PLF) for non-borrowing spouses under …
HUD Releases Changes to the HECM Reverse Mortgage Program
After much anticipation and speculation, the Department of Housing and Urban Development (HUD) has released a multitude of changes to the HECM program. “These changes to reverse mortgages will protect consumers,” according to Carol Galante, Federal Housing Administration (FHA) Commissioner and Assistant Secretary for Housing. The following is a summary of the changes that were announced …
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HUD to Eliminate The Fixed Rate Standard Reverse Mortgage
After much speculation, HUD announced the future elimination date of the Fixed Rate Standard Home Equity Conversion Mortgage (HECM). For new case numbers assigned on or after April 1, 2013, any homeowner seeking a fixed rate reverse mortgage will be limited to the Fixed Rate Saver Program. HUD also notes that all fixed rate standard loans must …
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CFPB Reverse Mortgage Report: What You Need to Know
You’d be hard pressed to do an online search for reverse mortgage information today without coming across an article about a recent landmark government report on the product and the lenders who offer it. The CFPB reverse mortgage report spans more than 200 pages of research recently conducted by the Consumer Financial Protection Bureau and …
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Reverse Mortgages Have 2 Notes and 2 Deeds of Trust
When it comes to signing final reverse mortgage loan documents, borrowers are often concerned when the notary presents them with two Deeds of Trust (or mortgages, depending on the location of the property) and a First and Second Note. To further complicate it, the Deed of Trust shows an amount much higher than anticipated and …
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Comparing Fixed Rate and Adjustable Rate Reverse Mortgages
Adjustable Rate Reverse Mortgages Explained Adjustable rate reverse mortgages (also referred to as variable rate reverse mortgages) offer much more product flexibility than fixed rate loans for the simple fact that fixed loans require that the borrower take all the available proceeds in a one-time lump sum draw at closing, while adjustable rate loans allow …
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How Will A Reverse Mortgage Impact My Kids?
A major question that may come up if you’re discussing the possibility of taking out a reverse mortgage is: How will it impact your adult children? The heirs of a reverse mortgage borrower are usually affected to some extent by the loan, and this can be seen in a couple of different ways, both positively …
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