Here is some news about the new jumbo product from Generation Mortgage.

The product is tailored specifically for seniors whose homes appraise higher than than $1,000,000 said the company.

“Many owners of higher-valued homes find themselves in the position of being house rich and cash poor,” said Jeff Lewis, Chairman of Generation Mortgage. “With our Plus loan, these owners can receive the liquidity they require without having to sell their home or other assets. And, with an improving real estate market, this offering becomes even more attractive.”

According to the company, the minimum home value eligible is $500,000.  Borrowers are required to receive a HECM counseling certificate in order to obtain the loan and the product includes a $25 servicing fee (not a set aside).  Additionally, seniors can use the Prime to purchase a home.

When we have more details and a calculator we will post them here…

In the meantime, simply call 1-888-823-6125 to speak with an expert.

Reverse Mortgage Fees

One of the major complaints about Reverse Mortgages as a whole is that they are too expensive.  Well, that problem has now been fixed and this article will explain how lenders have removed their service fee, taken out their origination fee, and what these changes mean for you.

The Reverse Mortgage is a loan, and like any normal forward mortgage, it has a service fee.  However, in a Reverse Mortgage, or HECM which stands for Home Equity Conversion Mortgage, the service fee is collected out the loan proceeds and is paid each month by your lender.  By removing this fee, Borrowers can now receive much more money from their loan than ever before.

Along with removing the service fee, Reverse Mortgage Lenders have also removed the Loan’s Origination Fee!  There are two major charges involved with this product. The Mortgage Insurance Premium, which is an amount that calculated by taking 2% of the home’s appraised value.  The other is the Origination Fee which is also calculated by taking 2% of the home’s value, although recently most lenders have capped their fee at $6,000.

Both of these major changes mean on thing:  More Money for you, the borrower!  By removing the origination fee, these banks and mortgage lenders have removed close to half of the fee’s involved in a Reverse Mortgage.  The removal of the service is also great because it should increase your available funds by $3,000-$6,000!  There is now more money available for you to pay off your current mortgage, increase income, and create investment capital for insurance policies, savings plans, bonds, and securities.  All of this should increase your enjoyment of your retirement and make sure your home is always safe from foreclosure and default.

There are several lenders, but not all, who have made these dramatic changes in the competitive nature of Reverse Mortgages.  To find out which lenders have taken out these fees to make your Reverse Mortgage better, either contact ReverseMortgageSafety.com by filling out a form or contact each lender directly to see if they have removed their fees.

Florida Reverse Mortgage Bill

Florida’s proposed reverse mortgage bill, SB 1532, passed the Florida Senate by a unanimous vote and now waits to be considered by the House of Representatives. The House version of the Bill, HB 845, is on the agenda to be reviewed by the Policy Committee on Friday.

More details will be posted here.

I think the projected volume is due the low appraisal values that are plaguing the industry.

According to a recently released report by the Department of Housing and Urban Development (HUD), the Federal Housing Administration is projecting that reverse mortgage endorsement volume will decline in 2010.  It would be the first year over year decline the industry has experienced in at least a decade. According to the report, FHA estimates the industry will endorse 106,875 HECMs during HUDs fiscal year 2010 which represent a 7% decline from endorsements in 2009.

To find out if an appraisal value will effect your Reverse Mortgage, simply call the help line at 1-888-823-6125.

The US Department of Housing and Urban Development has finally officially extended the loan limits for its FHA insured reverse mortgage program with Mortgagee Letter 2009-50.

There was a risk that after the end of the year, Reverse Mortgage Loan limits may have been reduced back to the limit previously set at $417,000. The excellent news is that the the lending limit is now going to be extended for another year.

The current CR mandates that the revised FHA loan limits for 2010 are set at the higher of the loan limits established under the Economic Stimulus Act of 2008 (ESA) or those loan limits otherwise established for 2010 as amended by the Housing and Economic Recovery Act of 2008 (HERA).

Under provisions of the recent CR, the national FHA loan limit for the HECM program in 2010 remains at $625,500 (150 percent of the national conforming limit). In the special exception areas (AK/HI/GU/VI), the maximum claim amount on HECM mortgages is the same $625,500 limit as in all other areas. The loan limit shall be effective for all HECMs that have been assigned a FHA case number on or after the effective date of this Mortgagee Letter.

To read about the increase in lending limits, click here!

Reverse Mortgage Fraud
Reverse Mortgage Requirements
Reverse Mortgage Calculation
Reverse Mortgage Loan Officer
Reverse Mortgage Underwriting

When we find more sites will list them here… Enjoy!

While concerns about low appraisals are legitimate, the problem is not necessarily with the appraiser’s Home Valuation Code of Conduct.  This was stated by a key federal regulator in front of an angry crowd of real estate professionals in San Diego.

“We keep trying to find a provision that is causing problems, but we can’t,” Alfred Pollard of the Federal Housing Finance Agency said at the National Association of Realtors’ annual convention. NAR members are hopping mad at delayed closings and lost transactions.

In a survey conducted earlier in the year, three our of four agents said it is taking longer to get appraisals and the holdup is affecting their sales. But Mr. Pollard, the FHFA’s general counsel, said that a few lost deals may be the price that has to be paid to rid the marketplace of lousy appraisers.   “The reality is that no matter how you look at it,” the increase in complaints coincided not only with the “huge decline in prices that took place last year” but also at a time when mortgage rates hit bottom and lenders strained to handle the volume of applications. “  However, a Reverse Mortgage still might work for you.  Click here to Find Out.

Reverse Mortgage Appraisals

There have been many changes to Reverse Mortgages in general in the last year.  Independent reverse mortgage bankers are now facing increased net worth requirements which could change the way they currently operate.

Fannie Mae announced earlier this week that it was increasing the minimum required net worth requirement.    Over the last 12 months, Fannie Mae has increased approved sellers net worth requirements and they will be enacted by the end of the year.  That’s no small jump for mortgage bankers.

Besides FNMA, the Federal Housing Administration is proposing a rule to increase lender net worth requirements to $1.25 million and would become active within one year of the enactment of the rule said a statement from HUD.

With FNMA approval being out of reach of most mortgage bankers, the number of reverse mortgage lenders who are able to see the benefits of delivering directly to the GSE will shrink.

However, this also presents an opportunity for FNMA approved seller/servicers to act as investors to mortgage bankers who can’t meet its net worth requirements.

The most popular form of reverse mortgage is called a Home Equity Conversion Mortgage, or HECM. This loan is sponsored by the federal government and is one of the most heavily regulated mortgages ever created. For the casual loan shark, it’s not even worth the paperwork to try to perpetrate an HECM scam. Meanwhile, state attorney generals stand ready to guard elderly citizens from the predations of unscrupulous lenders. For a state attorney general, nailing a reverse mortgage scammer is the best PR in the world.

AARP has a whole section on its Web site about reverse mortgages. Many other sites offer information about reverse mortgages. Moreover, seniors are required to sit down with a housing counselor before accepting a reverse mortgage.  Scammers are discovering that there are quicker, easier ways to make a dishonest buck than selling reverse mortgages.