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Reverse Mortgages Come with Upsides & Downsides

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So, you’re thinking about getting a reverse mortgage, but you’re not sure how the product will work best for you. Maybe you’re hearing the downsides of the loan along with the upsides. Here is a look at the pros and cons of a reverse mortgage. Reverse Mortgage PROS/Upsides  Pro: It helps seniors stay in their homes. While there are several reasons to access a reverse mortgage, among the best known is the opportunity the product presents to fixed-income seniors seeking funds for their basic needs. For this population,... Read Full Article

New York Governor Signs 2020 Reverse Mortgage Regulations

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Update: New York Governor Vetoes Co-Op Legislation New York Governor Andrew Cuomo vetoed legislation (Senate Bill 3686-B) last week that would have permitted reverse mortgages on cooperative housing. While FHA does not permit Home Equity Conversion Mortgages on co-ops, NRMLA worked with state lawmakers and other stakeholders earlier this year to craft a bill that could have offered a way for co-op owners to use proprietary reverse mortgages for their retirement needs. In a statement announcing the veto, Governor Cuomo said, “While the goal of the legislation is... Read Full Article

What is a Reverse Mortgage? Explained in Layman’s Terms

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In 1961, banker Nelson Haynes of Deering Savings & Loan in Maine wanted to ensure that the widow of his high school football coach could remain in her lifelong house despite the loss of her husband’s income. So, Haynes wrote what is believed to be the first reverse mortgage, which lent her money against the equity of her house. The reverse mortgage has evolved heavily since its inception nearly six decades ago and evolved greatly since Congress approved it as a federally-insured product in the late 1980s.... Read Full Article

Can a reverse mortgage appraisal be used by another lender?

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Can a reverse mortgage appraisal be used by another lender? The answer to this used to be “Not only can it be used by another lender as well, but it must be used by all lenders on FHA loans until the appraisal has expired”. However, HUD has issued some strange guidance and rules in recent times in conjunction with the real estate appraisal industry. So, here is the new answer:  HUD assigns a Case Number at the lender’s request and the lender must order an appraisal... Read Full Article

2020 Reverse Mortgage Limits Soar to $765,600!

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In early December, the U.S. Department of Housing and Urban Development (HUD) announced that the lending limit for Home Equity Conversion Mortgages (HECMs) – the federally-backed reverse mortgage program – will be increasing for the fourth year in a row. Beginning on January 1, 2020, the lending limit for government-insured reverse mortgages will be $765,600, marking an increase of $39,075 from the lending limit HUD set for 2019. HUD announced the revised lending limit for 2020 in an officially released Mortgagee Letter (ML). The amount of... Read Full Article

Why the Lowest Reverse Mortgage Rates Offer Most Money

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If You’ve Looked at a Reverse Mortgage in the Past, You May Want to Look Again! If you have ever investigated a reverse mortgage or have thought about it, especially in the past 24 months and didn’t think the numbers worked for your needs, it may be time to check again. The reason we say this is because one of the main factors that determines how much money you will receive in your reverse mortgage is the interest rate. Since HUD changed the Floor Rate on the program, borrowers had... Read Full Article