Obama Names New HUD Secretary, What Does It Mean For Reverse Mortgages?
Published in: Reverse Mortgage Daily
Posted: Tuesday, December 16, 2008
Over the weekend, President-elect Barack Obama announced that Shaun Donovan will become the new secretary of Housing and Urban Development. Donovan, a trained architect, served in the housing agency under President Bill Clinton and has been commissioner of housing in the New York City government since 2004. In Obama’s announcement, he said HUD will be a central part of his efforts to resolve the housing crisis.
“Expanding access to affordable housing isn’t just about caring for the least fortunate among us and strengthening our middle class,” Obama said as he announced his choice of Donovan in his weekly radio address. “It’s about ending our housing mess, climbing out of our financial crisis, and putting our economy on the path to long-term growth and prosperity.”
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Reverse Mortgages Gaining Momentum
Published in: The Seattle Times
By Elizabeth Rhodes
December 8, 2008
Like many retirees, Marlene Laffoon, 73, watches in dismay as both her home's value and her investments slide southward. And yet everyday costs for this former bookkeeper and Snohomish County resident aren't falling correspondingly.
So Laffoon's spirits rose last month on an unexpected windfall of good news: Loan amounts on reverse mortgages have been increased, and the fees decreased.
A reverse mortgage allows homeowners 62 or older to borrow up to $417,000 of their home's equity to use any way they wish; the old limit was $352,790. They don't have to repay it as long as they stay in the home.
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Reverse Mortgage Loans Are Highly Regulated
COMMUNITY VOICES
Daytona News Journal 06/15/2008, Page B03
By RANDEE E. SAFFER
An article on reverse mortgages (‘‘Beware pitfalls in reverse mortgages,’’ June 10), especially the headline, was misleading. Reverse mortgages are one of the most federally scrutinized and regulated loan programs available. All prospective borrowers must receive independent counseling from federal-sanctioned counselors before even applying for this type of loan to make sure that they understand the program and to determine if this is their best alternative.
Fees include federally mandated insurance to make sure that the homeowner and heirs will never owe more on the mortgage than the house is worth. Many seniors are having trouble with maintaining their lifestyles because of increased costs and limited cash income. This loan has literally been a lifesaver for the many seniors I have had the pleasure to work with in our community who can now enjoy their lives to the fullest. The program is ideal for cash-strapped seniors who are struggling to pay property taxes, monthly home maintenance bills, home repair bills or for basic living expenses.
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2007 FannieMae National Loan Limits will remain at $417,000. Please contact your ARM Advisor for additional information.
Through December 31, 2008, more than 478,936 Senior Americans have taken advantage of an FHA Home Equity Conversion Mortgage (HECM). Stay tuned for next month's total!
History:
The Reverse Mortgage became a valuable and safe tool for Senior Americans when the United States Congress authorized the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) Home Equity Conversion Mortgage (HECM).
1) The United States Congress passes FHA Reverse Mortgage Legislation, the Housing and Community Development Act of 1987, (S. 825) on December 22, 1987.
2) President Ronald W. Reagan signs FHA Reverse Mortgage Legislation (S. 825) on February 5, 1988.
3) First FHA Reverse Mortgage made to Marjorie Mason, of Fairway, KS by James B. Nutter & Company on October 19, 1989.
Another program became available in 1996 when the Federal National Mortgage Association (FannieMae) created the Home Keeper.
These two Reverse Mortgages offer the opportunity for virtually all Senior Citizens to utilize the equity in their homes to provide needed financial security. Since 1989, more than 478,936 Seniors have obtained an FHA HECM.
Company Commitment:
Most lenders offer conventional or "forward" mortgages as their primary means of doing business. This may indicate a reduced level of commitment to Reverse Mortgages and therefore a lower level of customer service to the borrower. On the other hand, we devote 100% of our business efforts to providing Reverse Mortgages. All of our staff are specifically trained to provide the best customer care through the entire process.
Company Experience:
Expert knowledge of the product offered by any company is a critically important consideration by every potential customer of that company. Experienced providers can better counsel customers and suggest the appropriate options available utilizing all available programs. We meet this high level of expertise with more Reverse Mortgage experience than anyone else.
Hablamos Español y Falamos Português:
We have several Reverse Mortgage Advisors who are fluent in Creole, Dutch, Farsi, French, German, Korean, Portuguese, Russian, Spanish and of course English. Please notify us if you need one of our bi-lingual or tri-lingual Reverse Mortgage Advisors.
Information Sources:
The American Association of Retired Persons (AARP) publishes a book (52 pages) titled "Home Made Money: A Consumers Guide to Reverse Mortgages". It is also available in Spanish, "Dinero Hecho En Casa".
The American Bar Association (ABA) publishes a book (292 pages) titled "Reverse Mortgages - A Lawyer's Guide to Housing and Income Alternatives".
The Federal National Mortgage Association (FannieMae) publishes a book (96 pages) titled "Money From Home - A Guide to Understanding Reverse Mortgages". FannieMae provides a four (4) page "Home Equity Conversion Mortgage (HECM) Consumer Fact Sheet". FannieMae provides a (4) page document titled "Considering a Reverse Mortgage? Review These 5 Steps to See if One is Right for You". FannieMae also has a (4) page "Home Keeper Consumer Factsheet".
The National Council on Aging (NCOA) publishes a study (104 pages) titled, "Use Your Home to Stay at Home", and two new booklets "Use Your Home to Stay at Home: A Planning Guide for Older Consumers" (20 pages) and "Use Your Home to Stay at Home: A Guide for Homeowners Who Need Help Now" (24 pages)
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