Reverse Mortgage News

Browse through our reverse mortgage news directory to read what the national media are saying about reverse mortgages.

Seniors Get a Gift From the New Housing Law

August 4, 2008 - Kiplinger.com

When trying to figure out who benefits from the new housing law, don't forget to count seniors who are in the market for a reverse mortgage. These mortgages let seniors convert some of their home equity into a stream of income, a line of credit or a lump sum. The money does not have to be paid back until the last borrower sells or dies. For retirees who are house-rich but cash-poor, the new law offers some significant changes

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Reverse Mortgages: Bad Rap or Bad Idea?

August 1, 2008 - SF Gate

Not so long ago I was at my father's house, and I heard him on the phone, arranging a visit with someone. When he hung up, I inquired about who he was making plans with. "A very nice guy who called me," he told me. "He's coming to assess my house for a reverse mortgage." "A reverse mortgage telemarketer?" I blurted. "You invited him into your home?"

Of course, I know there is nothing inherently evil about accessing equity from your home — but there's also a notoriety about these financial tools that made the notion of my father being sweet-talked by a reverse mortgage salesman quite worrisome.

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Understanding Reverse Mortgages

July 15, 2008 - The Daily Herald

Over the years reverse mortgages have been considered loans of last resorts, only for financially desperate seniors.
Not anymore! The reverse mortgage industry is booming helping retirees from all walks of life use their homes to
help fund their retirement.

The Basics:

A reverse mortgage is a unique loan that lets older homeowners convert part of the equity in their home into
tax-free income that doesn't have to be paid back as long as they live there. But who's eligible? How much can be
borrowed? What does it cost? And is this right for you? Here are the key points on how a reverse mortgage works and where you can find help:

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Housing Bill Pits AARP Against Life Insurers

July 9, 2008 - The Hill

The financial services industry is dueling the AARP over language in the Senate housing bill that would affect a
small but rapidly growing corner of the mortgage market.

At issue is a provision that would prevent providers of so-called reverse mortgages, a government-backed loan
designed to help cash-strapped seniors tap into their home equity, from selling borrowers another investment from the proceeds of the loan.

Life insurers and other providers of reverse mortgages contend that barring such cross-selling amounts to undue
interference in their relationships with consumers. But the backers of the provision, which was introduced by Sen. Claire McCaskill (D-Mo.), say the measure is necessary to protect poor seniors from abusive marketing that could cause them to squander one of their few remaining assets.

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Squeezed older homeowners seek reverse mortgages to pay loans

June 4, 2008 - The Sacramento Bee

Pressured by a faltering economy and often burdened by loans they took out during the housing boom, more Sacramento-area homeowners are looking to reverse mortgages for an escape route. But many are finding the road blocked by the falling values of their homes.

"A lot of them aren't qualifying now. With the falling values they don't have as much equity," said Sylvia Williams, a Elk Grove loan specialist with San Rafael-based Sequoia Reverse Mortgage.

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Could A Reverse Mortgage Save Your Parents’ Lifestyle?

May 15, 2008 - TriCities.com

A MORTGAGE IN REVERSE

Helen didn’t want to sell her house. She was having a tough time paying for prescriptions, medical bills and she would need a new car soon. If she sold her house, she’d have to make repairs anyway.

“I just didn’t want to move,” she said. “I probably could’ve gone into something smaller and cheaper.” That’s when Helen remembered something she heard about in a real estate seminar years ago. She was going to research reverse mortgages. She eventually took one out.

“I’m not an extravagant person. It didn’t take much to keep me happy.”

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Reverse Mortgages Steadily Climb

May 5, 2008 - Springfield Business Journal

When 75-year-old Susie Clingan, of Springfield, needed an additional source of steady income in 2006 to meet higher costs of living, she turned to her most valuable possession: her home.

Clingan took out a reverse mortgage from BancorpSouth, and though she declined to discuss actual figures, she appreciates the help with her budget.

“I don’t know what I’d do if I wasn’t receiving that money now,” she said. “I thought for sure I was going to have to give up something dear – and that was before I saw what gas was going to cost.”

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One Borrower's Return From Edge of Foreclosure

May 4, 2008 - The Press Democrat

Facing foreclosure on her Sebastopol home and Petaluma rentals, Anna n-ha(cq) Millee used a reverse mortgage to pull cash out of the properties and pay off her lenders.

There also was enough money left to improve the income property. She plans to eventually put tenants back into the units and restore lost income that led to her financial dilemma.

“I was in total panic. Right now, this meets my needs completely,” she said.

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Why Not Raise Reverse Mortgage Limits?

May 1, 2008 - West Side Leader:  While loan limits for conventional mortgages recently were raised with the passage of the Economic Stimulus Act of 2008, those seniors hoping to tap into additional home equity via the nation’s most popular reverse mortgage are stuck with the same loan ceilings — at least for now.

The Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development, insures the Home Equity Conversion Mortgage program, which accounts for nearly 85 percent of the reverse market. The program has insured more than 240,000 reverse mortgages since 1990, while private jumbo reverse plans also have been available.

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Reverse Mortgages Are Not Part of Current Credit Crisis

April 25, 2008 - Let Your Home Pay You

With the national mortgage market experiencing an
unprecedented liquidity and public confidence crisis, it is
no wonder that anyone considering entering into a mortgage agreement these days, does so with great trepidation and a certain amount of outright fear. Given the current state of economic affairs, these reactions would appear to be justified.

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Reverse Mortgages Getting Better

April 24, 2008 - Market Watch.com:  Question: My aunt is in a similar position as the 91-year-old woman with an oceanfront house in Southern California. It was suggested to us that she use a reverse mortgage. What are the cons to a reverse mortgage?

Answer: There are a couple that come to mind. For one thing, the fees are expensive, not just to originate the loan but also to administer it. But they are coming down as competition among lenders heats up.
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Survey Finds Homeowners Need Reverse Mortgage Loans To Pay For Everday Expenses..

April 2, 2008 - Fox Business:  A survey of 213 homeowners who have received reverse mortgage loans found that the number one reason for the loan is to pay for daily living expenses. Only 3% say they used the funds from a reverse mortgage loan to take a vacation.

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Be A Little Less Sheepish About Reverse Annuity Mortgages

April 1, 2008 - The Daily Journal: Dear Mr. Berko: We're retired and don't have enough income to meet our living expenses, especially real estate taxes, home insurance costs, food, medical and upkeep, which seems to be increasing every year. Please tell me about a reverse annuity mortgage. Like, what do they cost? Do we have to pay off our current low mortgage? Are they very expensive? What happens to the equity when we pass on? Can we lose our home? And who should we contact in order to make applications?

F.D., Gainesville, Fla.

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Loan Limits Should Be Raised For Reverse Mortgages

March 16, 2008 - Herald Net: While loan limits for conventional mortgages recently were raised with the passage of the Economic Stimulus Act of 2008, those seniors hoping to tap into additional home equity via the nation's most popular reverse mortgage are stuck with the same loan ceilings -- at least for now.

The Federal Housing Administration, a branch of the U.S. Department of Housing and Urban Development, insures the Home Equity Conversion Mortgage, which accounts for nearly 85 percent of the reverse market. The Home Equity Conversion Mortgage program has insured more than 240,000 reverse mortgages since 1990, while private jumbo reverse plans also have been available.

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Reverse Mortgages Can Help Seniors

March 5, 2008 - Insight News: More and more seniors unable to keep up with escalating living expenses have begun exploring reverse mortgages, where they draw equity from their paid-off homes and continue living there with no monthly payments.
Although reverse mortgages make sense for some people - especially those on fixed incomes who want to remain in their homes as long as possible - they have complex rules and hefty upfront costs, so look carefully before you leap.
Keep these considerations in mind:

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Mrs. Ruby's Victory

March 4, 2008 - South Florida Times:Today, we are discussing a story that starts out appearing to be hopeless, but ends in victory.
The main reason I felt the need to share this story is because there are so many others (millions) who are in the same situation but who have neither the courage nor the willpower to reach out and ask for help.
For the few who want help, many don’t know to whom or where to turn, often relying on a friend or family member who’s privately going though their own financial wars.
So pay attention: This could one day happen to you.

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A Reverse Mortgage Requires Sound Advice

March 2, 2008 - Baltimore Sun: Foreclosures are up, and it looks like they won't be coming down anytime soon.

Troubled homeowners have a few options to stave off foreclosure, and Congress is looking at creating others. But older homeowners, age 62 and up, for years have had a tool that's sometimes overlooked: a reverse mortgage.

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Questions To Ask Before Taking a Reverse Mortgage

March 2, 2008 - New York Times: Reverse mortgages are complex loans typically available only to homeowners older than 61. They permit owners to borrow against their houses, but they do not require loan repayment until the borrower moves out of the home or dies. Then the loan is repaid from the proceeds of selling the house...Read more of this article