Here are our current articles with links to their source, on the subject of Reverse Mortgages. No doubt about it...Reverse Mortgages are a hot topic and very much in the news....

Attorney General’s Bill Vetoed, Says Reverse Mortgage Hype Is Coming
Jun 17, 2009 05:17 pm | admin

The reverse mortgage industry let out a sigh of relief when Minnesota’s Governor vetoed a bill which would’ve hurt the reverse mortgage industry and seniors living in the state. The person who spear headed the introduction of SF 489 was Minnesota’s Attorney General Lori Swanson. Ms. Swanson was not happy that the bill was...

Calculating Reverse Mortgage Risk, Are There Other Options?
Jun 16, 2009 01:27 pm | Neil

Not unlike an insurance policy, wherein key educated guesses underpin much of the pricing and risk (payout) calculations, a reverse mortgage “calculator” is used by lenders to determine how much money to make available to a senior from the equity in their home, based on several factors including a borrower’s age and the property value...

HUD Updates Condo Approval Process For Reverse Mortgages
Jun 15, 2009 03:02 pm | admin

The Department of Housing and Urban Development published Mortgagee Letter 2009-19 which implements a new approval process for condominium projects to qualify for FHA insured mortgages in accordance with the Housing and Economic Recovery Act. FHA will now allow lenders to determine project eligibility, review project  documentation, and certify to compliance of Section 203(b)…

Tax Consequences Resulting from Foreclosure on a Reverse Mortgage
Jun 12, 2009 01:30 pm | Jim Veale

One of the most perplexing aspects of the Home Equity Conversion Mortgages (HECMs) is the income tax consequences of forgiving (or canceling) any portion of the balance due through short sale, foreclosure, trustee’s sale, or deed in lieu of foreclosure. (This article does not address the income tax consequences of abandonments). The complexity stems from...

FTC Alert: Identifying False and Misleading Claims Related to Reverse Mortgages

Jun 12, 2009 12:21 pm | admin

The Federal Trade Commission published Housing Counselors: How to Help People Avoid Reverse Mortgage Missteps to provide guidance for counselors in identifying false and misleading claims related to reverse mortgage offers. As an example, the FTC said that some unscrupulous lenders may try to mislead seniors about the key features of a reverse mortgage...

HUD Secretary Open to Raising HECM Premiums or Adjusting Loan to Values
Jun 11, 2009 02:02 pm | admin

Housing and Urban Development Secretary Shaun Donovan said he was open to raising premiums or restricting eligibility for Federal Housing Administration reverse mortgages to avoid a $798 million taxpayer subsidy for the program. "We do have options for changing the HECM program," Donovan told a Senate appropriations committee Thursday, referring to the FHA’s Home Equity...

False Advertising of Reverse Mortgages Concerns Authorities
Jun 11, 2009 01:49 pm | Neil

False advertising, while not new, is cropping up often enough in direct mail pieces to prospective reverse mortgage customers that public and private authorities are expressing concern. Often appearing as if it is coming from an official (i.e. government) source, the appeals offer to help unsuspecting recipients - usually seniors - take the necessary and proper...

CNBC Debate: Are Reverse Mortgages the Next Subprime?
Jun 10, 2009 01:14 pm | admin

Last night CNBC’s Dennis Kneale spoke with Jeffrey Lewis of Generation Mortgage and Babette Bach, an elder law attorney about reverse mortgages. In Reverse Mortgages: Next Subprime? they debate whether the government guaranteed HECM program is fueling another bubble. Lewis does a great job during the debate but I can’t say the same about his opponent Ms...

WSJ: Seniors Drawn to Reverse Mortgages
Jun 10, 2009 01:09 pm | admin

A new article from the Wall Street Journal describes how there is one segment of the mortgage market that is still hot: federally insured reverse mortgages. In Seniors Drawn to Mortgages That Give Back, Nick Timiraos writes that more seniors are turning to reverse mortgages to supplement their retirement savings, which in some cases...

Community Rallies, Seniors Home Saved With Reverse Mortgage (Update)

Jun 10, 2009 01:01 pm | admin

Despite a storm of negative press about reverse mortgages yesterday, look hard and there is some positive news as well. There was lots of discussion regarding 72 year old Lorraine Zickefoose, whose home was scheduled to go up for auction after falling behind on her payments with Wells Fargo. AAXA Mortgage’s John Smaldone had been...

Minnesota’s New Elder Abuse Unit Prosecutes Man For Swindling Mother
Jun 05, 2009 02:05 pm | admin

When I read stories like Sentence for swindling mom? Go directly to jail, I can understand why state legislators are concerned about people using reverse mortgages to take advantage of seniors. Larry Bekis took out $100,000 from his mothers home using a reverse mortgage but failed to use the money to pay $49,000 in nursing...

Reverse Mortgage Counseling Exam Details Emerge
Jun 04, 2009 03:03 pm | admin

As part of the Department of Housing and Urban Development’s changes to HECM counseling, all HECM counselors will need to pass an exam to demonstrate their knowledge of reverse mortgages. In cooperation with HUD, AARP Foundation’s Reverse Mortgage Education Project (RMEP) will be administering the HUD HECM Counselor Exam. The HECM counseling exam has...

Top HECM Lenders Through May 2009
Jun 03, 2009 01:53 pm | admin

Below is a list of the top HECM lenders through May 2009. Be sure to check out the commentary and link below which goes into more detail. Endorsements for the month of May were 8,396, bringing us to 50,261endorsements YTD. While down sharply from the previous months, overall endorsement volume for the year is still trending...

Vermont Governor Signs Bill, Bans Proprietary Reverse Mortgage Products

Jun 03, 2009 01:51 pm | admin

Earlier this week, Vermont’s Governor Jim Douglas singed H 222 which limits the availability of reverse mortgages to seniors in the Green Mountain State. H 222 contains several provisions to protect seniors who purchase certain types of lending and insurance products. H 222 states that only HUD approved financial institutions can issue reverse mortgages and...

You can sign-up and receive a free daily update right to your email box. It's called “Reverse Mortgage Daily News.

Tom Domin is the author of "101 Ways to Originate Mortgages" and publisher of "Tom's Mortgage Tips" a twice monthly Mortgage Newsletter geared for Mortgage Professionals. Put your mortgage career on the fast track and sign-up for FREE at http://www.MortgageMarketingToolKit.com/

Copyright © 2009 Sunset Management Solutions, Inc.
All Rights Reserved.