3 Ways You Can Rescue Your Retirement

If you are retired and spending more than 10% of your nest egg every year, then you must recognize that this rate of spending may be unsustainable. Steps like a reverse mortgage or an annuity may provide additional income.

Reverse Mortgage applications down 54.2% from 2009

The Federal Housing Administration announced that reverse mortgage application activity is down 54.2% compared to the same period 2009.

11.3 million homeowners underwater on mortgage

Nearly 25% of all American homeowners with a mortgage owe more than the value of their homes. Over 10% owe more than 25% above the value.

Mortgage Delinquencies Improve 4th. Quarter 2009

Mortgage delinquencies were lower in the 4th. Quarter 2009. This may be a sign that foreclosures will also decrease. The result may be that housing values will begin to stabilize.

Reverse Mortgage Applications Decrease

Reverse mortgage application volume has dropped sharply since FHA lowered the principal limit October 2009. It is estimated that 2010 volume may be 20% to 30% less than 2009.

Are Reverse Mortgages Too Expensive?

Are Reverse Mortgages Too Expensive? This argument is ubiquitous, yet it makes no sense. Too expensive relative to what? Right now there are no private programs to compare HECMs with, but when such programs existed, their costs were much the same. The instrument that most resembles the HECM is the forward home mortgage -- while they meet different needs, the delivery systems are very similar, the cost items are much the same, and therefore the total costs ought to be similar. And so they are, absent the mortgage insurance premium on HECMs.

Reverse Mortgage for Home Care

Under our "system‚" of paying for long-term care, you may be able to qualify for Medicaid to pay for nursing home care, but in most states there's little public assistance for home care. Most people want to stay at home as long as possible, but few can afford the high cost of home care for very long. One solution, which is growing in popularity, is to tap into the equity built up in your home.

Reverse mortgages are a way of borrowing that transforms the equity in a home into liquid cash without having to either move or make regular loan repayments. They permit house-rich but cash-poor elders to use their housing equity to, for example, pay for home care while they remain in the home, or for nursing home care later on. The loans do not have to be repaid until the last surviving borrower dies, sells the home or permanently moves out.

Although it is often assumed that an elderly person would want to use the funds from a reverse mortgage loan for health care, there are no restrictions--the funds can be used in any way.

Reverse Mortgage Appraisal Independence

The Department of Housing and Urban Development announced by email that the enactment of ML 2009-28 (Appraiser Independence) will be implemented as planned on February 15, 2010.

ML 09-28 prohibits mortgage brokers and commission based lender staff from the appraisal process and has lead to wholesale reverse mortgage lenders requiring the use of Appraisal Management Companies to ensure compliance with FHA.

Foreclosures Surge on Way?

The number of U.S. households facing foreclosure in January increased 15 percent from the same month last year, and a surge in cash-strapped homeowners who've fallen behind on mortgages could be on the way.

Reverse Mortgage Through Family?

The Wall Street Journal published the Case for Being Your Mom’s Banker where they discuss whether a reverse mortgage or a private mortgage between family is a better decision to help out your parents. In respect to reverse mortgages, WSJ contributor Kelly Green writes: But there are significant drawbacks.

Reverse Mortgage increased fees and reduced available principal limit

Following the budget briefing on Monday, NRMLA (National Reverse Mortgage Lenders' Association) reported that the Administration’s proposed Fiscal Year 2011 budget for the U.S. Department of Housing and Urban Development would increase the annual mortgage insurance premium on Home Equity Conversion Mortgages from 0.5 percent to 1.25 and reduce principal limit factors by a small amount.

Reverse Mortgage Volume Grows 25% to $30.2 Billion in 2009

Volume of the Federal Housing Administration’s reverse mortgage program, the Home Equity Conversion Mortgage (HECM) grew to $30.2 billion in FY 2009.  According to data from Reverse Market Insight, 22% of the increase in volume comes from the lending limit increase and the remaining 3% stems from the additional units in FY 2009. In addition, the shift to the fixed rate product has also been a factor. “The shift to the fixed rate product further magnifies the increased dollar volumes spurred by higher lending limits, as the unpaid principal balance (UPB) is up 31% for FY 2009,” said John K. Lunde, President of RM Insight.  Whether or not the industry will continue to grow in FY 2010 is another story. The Office of Management and Budget is predicting the industry will endorse 120,429 units in 2010 while FHA’s Outlook Report shows a prediction of 106,875 units for FY 2010.