January 2009

Reverse Mortgage News

I am quite a bit behind in posting any new info and the reason is, I’ve been quite busy with new loans and clients the last quarter of the year.   My most recent client was 95 years old but most definitely of the mindset of an 45 old person.

She is a wonderful and funny woman and her little sis (who’s 88) had actually been helping her by paying for her care giving costs every month.  Finally the younger sister said that she should couldn’t do it anymore and researched the benefits of a Reverse loan for her big sister and ultimately was referred to me.

Imagine?   An 88 year old woman, paying $4000 a month to help her sister.   That’s love!   Anyway, the loan is done and they are both extremely happy and I enjoyed every moment of my time spent with them.  It’s this type of experience that makes this profession so rewarding.

There’s quite a bit of news in my industry and instead of me trying to explain it all, I’m just going to paste a press release from the National Reverse Mortgage Lender’s Asso./NRMLA instead.  

Press Release: New HUD Data Shows Growth in Reverse Mortgage Activity
January 8, 2009
                                                           FOR IMMEDIATE RELEASEContact:    Peter Bell, President, NRMLA202-939-1741, pbell@dworbell.com                 Darryl Hicks, Associate Director, NRMLA202-939-1784, dhicks@dworbell.com  Washington, D.C. – Despite turmoil in the broader mortgage market, data released in December by the Department of Housing and Urban Development shows that on a calendar year basis, the number of federally insured Home Equity Conversion Mortgages (HECMs) closed in 2008 grew 6.4% to 115,176 loans. “As more seniors try to figure out how to cope with today’s economic conditions, the HECM program takes on increased significance,” said Peter Bell, President of NRMLA. A more detailed analysis of HUD data conducted by Reverse Market Insight, Inc., a consulting firm based in Aliso Viejo, CA, indicates that three of the top 10 markets in the country are located in Florida.  Miami was the top market in the country by a  2 to 1 margin. FHA insured 9,561 HECM loans in the Miami metro area, followed by Los Angeles (4,126), Tampa (3,956), Santa Ana, CA (3,695), Baltimore (3,595), Phoenix (3,582), Orlando (3,556), Richmond, VA (3,493), Philadelphia (3,317) and Chicago (3,184) to round out the top 10.   Further analysis by RMI shows that 2,949 lenders originated at least one HECM loan in 2008, a 76.5% increase over the prior year. Bell anticipates newly enacted changes to the HECM—including a higher loan limit, lower fees, home purchase component, co-op eligibility and stricter consumer protections around cross-selling reverse mortgages with other financial services products—will lead to even more growth in the coming months. “The strong growth we’re seeing suggests the HECM program remains a strong and viable option for America’s seniors as they develop their financial plans for retirement ,” added Bell. “The HECM product is the most popular reverse mortgage offered today. Reverse mortgages are becoming a more mainstream financial planning tool for older homeowners. A reverse mortgage enables older homeowners (generally age 62+) to convert part of the equity in their homes into income without having to sell the home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular mortgage, a lender makes either one or more payments to the borrower.  The loan is repaid when the borrower moves out of the property.  About NRMLA NRMLA is a nonprofit trade association, based in Washington, DC, whose mission is to support the continued evolution of reverse mortgages as an important financial option for senior homeowners while educating both its members and consumers about the varied applications of this unique loan. Members sign a Code of Ethics and Professional Responsibility pledging to abide by guidelines that assure fair, ethical, and respectful practices in offering and making reverse mortgages to seniors. Details on NRMLA, reverse mortgages, and a list of reverse mortgage lenders in each state are available on NRMLA’s Web site, at http://www.reversemortgage.org. About Reverse Market Insight Reverse Market Insight is a leading provider of market research and data services for the reverse mortgage industry.  Founded in 2007 by industry veterans, RMI counts 7 of the top 10 reverse mortgage lenders as clients, and is the exclusive provider of market intelligence for the National Reverse Mortgage Lenders Association.  
 
 
All materials copyrighted © 2008 National Reverse Mortgage Lenders Association.

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