06 Oct 2011 01:52 pm
reverse mortgage
Archived Posts from this Category
23 Dec 2007 08:38 am
Seniors Need To Be Wary Of Some Reverse Mortgages
Unscrupulous sales agents are popping up in the booming [tag]reverse mortgage[/tag] industry. As a result, where reports of deceptive and high-pressure sales tactics are worrying lawmakers and consumer advocates.
Reverse mortgages are designed for homeowners, age 62 and older, to borrow against their home equity. The money goes unpaid until the home is sold or the borrower dies or permanently moves out. The older the borrower and the greater the value of the home, the more money that can be borrowed.
Reverse mortgages, if used properly, can provide cash to help seniors live more comfortably. The Senate on Dec. 14 passed bipartisan legislation that removes the cap on the number of reverse mortgage loans that the Federal Housing Administration can insure. (more…)
20 Dec 2007 08:58 am
Don’t Let Your Reverse Mortgage Become A “Subprime” Problem
We’ve all heard of the problems with low or no-down payment loans, subprime loans, resets and a plethora of less-than-desirable loan scenarios. So, will reverse mortgage loans become the next “subprime” debacle?
[tag]Reverse mortgage[/tag]s were meant to be the most conservative loan vehicle available to homeowners. You have to be at least 62 to get one, and the vast majority share the same closing costs and interest rates, regardless of lender. The market for reverse mortgages is expected to explode in the next two decades, as [tag]aging baby boomers[/tag] seek to unlock trillions in home equity.
Reverses are not right for everyone, but officials say they’re especially ripe for abuse, because seniors can be misled easily. Federal regulators are finding that some borrowers who were sold a reverse mortgage and an annuity from the same salesman, generating huge fees and tying up the homeowners’ money. (more…)
11 Nov 2007 07:59 am
Reverse Mortgages May Help Credit Crunch
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Federal housing-finance agency Ginnie Mae plans to roll out as soon as today what it calls the first “standardized” bond issue backed by [tag]reverse mortgage[/tag]s, a move aimed at boosting liquidity for one of the fastest-growing markets targeting [tag]baby boomer[/tag]baby boomers. The offering, expected to total about $120 million, consists of more than 1,000 government-insured reverse mortgages, which allow homeowners 62 years old or older to turn home equity into income they don’t have to repay until they sell their homes. Such loans have grown rapidly in popularity in recent years, thanks to the nation’s aging population, a lack of retirement savings and the rapid house-price gains in the first half of this decade. |