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The Jumbo Reverse Advantage over the HECM Government Reverse Program for Retirees
In the last six months, I have gone from adamantly avoiding the private label Reverse Mortgage program offerings for my clients to being an admirer and an outright endorser. The new Jumbo Reverse program looks nothing like the old one. The primary reason for this has been the radical change in the HECM that has forced competition within the private market. This is an example of pure capitalism at work. Radical changes within the government market opened the door for the private market to enter and grab market share. The changes were brought on by a desire for the indust...
August 22nd, 2018 | Jumbo Reverse Mortgage, HECM Reverse Mortgage, Eligibility for Reverse Mortgage, MIP, HECM Changes, The Jumbo Reverse Advantage over the HECM Government Reverse Program for Retirees
The New Jumbo Reverse Mortgage Advantage
After the radical changes the government insured HECM Reverse Program experienced last October, the private reverse market has really stepped up to its calling. The private label Jumbo Reverse has become a very affordable and flexible loan program with a new emphasis on helping homeowners qualify with a much broader application spectrum. As an example, today an eligible homeowner can use a Jumbo Reverse to buy a new home. In the past, the private reverse programs were designed solely for refinancing and only as a second option when the HECM program was not available. ...
June 12th, 2018 | Jumbo Reverse Mortgage, HECM Reverse Mortgage, HECM for Purchase, private label reverse mortgage, The New Jumbo Reverse Mortgage Advantage
How the Government Can Improve the HECM Reverse Mortgage Program Without Changing It
The current version of the government insured Reverse Mortgage is much more restrictive than in the past with regards to how much equity is available to homeowners. The latest changes that were enacted last October were directed at saving the government money from loan losses on property sales. The real underlying problem has been longevity and how to forecast it while still offering a generous program to meet the needs of retirees and seniors. After all, these two groups need a flexible means of tapping into their piggy banks to supplement retirement and they aren’t li...
May 8th, 2018 | Non-recourse loan, Reverse Mortgage, Retirement Planning, HECM Reverse Mortgage, How the Government Can Improve the HECM Reverse Mortgage Program Without Changing It
Private label Reverse Mortgages hit the Sweet Spot!
Private label reverse mortgages are hitting the sweet spot for higher priced homes in DC and the surrounding suburbs in Northern VA. Many retirees have lived in their homes for a long time and have a very low cost basis. They are comfortable and they don’t necessarily want to sell or downsize. In addition, their home provides fond memories of family and is still a place where everyone gathers and feels at home. Until recently, all homeowners with higher priced homes that have appreciated over the decades have pretty much been relegated to the HECM governme...
January 23rd, 2018 | Jumbo Reverse Mortgage, Reverse Mortgage, HECM Reverse Mortgage, Age in Place, Eligibility for Reverse Mortgage, Private label Reverse Mortgages hit the Sweet Spot!
Reverse Mortgages - Government vs. The People - PLFs
Since October 2013, it would appear that our government has been grappling with the people over principal limit factors (PLFs), otherwise referred to as home equity access levels for homeowners with Reverse Mortgages. The government actions are clearly based on merit but their attempts to resolve internal issues have been questionable. The primary efforts have been targeted at providing equity access to homeowners while feverishly trying to maintain the solvency of the program based on Social Security life expectancy forecasts. Here in lies the problem. The Federal government is effectively ba...
January 3rd, 2018 | HECM Reverse Mortgage, Principal Limit Factor, Non-recourse loan, FHA, Reverse Mortgage, Reverse Mortgages - Government vs. The People - PLFs
Reverse Mortgages and Social Security
Recently, there has been a lot of hype over the suggested strategy to utilize a government insured Reverse Mortgage to provide for more benefits over a lifetime with Social Security. I do not claim to know the exact reasoning or motivation behind the adverse claims made by the Consumer Financial Protection Board (CFPB) regarding this issue, but the agency feels that using a Reverse to maximize Social Security benefits is too expensive. I feel that this is a bit of a myopic view given the broad practical applications of the program but would certainly agree if this was the only...
December 12th, 2017 | Social Security, Reverse Mortgage, Retirement Planning, HECM Reverse Mortgage, supplemental retirement income, Reverse Mortgages and Social Security
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