Reverse Mortgages and Retirement Planning

How do Reverse Mortgages fit in with overall retirement planning? As the number of baby boomers entering retirement continues to grow, many are faced with the challenge of figuring out how to use their assets wisely. There are a wide range of considerations when planning for retirement, including figuring out where you want to live …

Using a Reverse Mortgage To Pay For In-Home Care

As the cost of long-term care continues to rise, many people are turning to in-home care as a less expensive alternative to moving into a retirement community. A recent study from Genworth Financial found the median monthly cost of an assisted living facility is $3,300 and has increased 6% since 2011. In contrast, the national …

Reverse Mortgage Financial Assessment

A hallmark of the reverse mortgage program is that historically, it hasn’t included any credit or income requirements for the borrower. But that may change, and some lenders have already implemented—and then revoked—guidelines determining applicants’ eligibility for this type of loan. Reverse mortgage financial assessment stems from ongoing discussion about ways to protect HECM borrowers from …

HECM Limits Extended Through December 31, 2011

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 …

Possible Reduction in Reverse Mortgage Loan Limits

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 …

Wells Fargo Exits Reverse Mortgage Business

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 …