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Archive for the ‘Mortgage’ Category

House passes bill to stabilize reverse mortgage

reverse_mortgage_01_sxc.huA significantly important step has been taken by the industry of reverse mortgage only yesterday and it was the passing of the Stabilization Bill for Reverse Mortgage.

The Bill can help HUD in making all the necessary changes and alterations to Reverse Mortgage through the HUD Mortagagee Letters instead of the more standard  process for rule making. This process for rule making has always remained a rather time consuming process. In fact, it would not be entirely wrong to call the process a time devouring one, and would be to say in the least!

A bill in order to be exercised should be passed as a law. Therefore in order to make the bill be effective, the next important step should be to pass it as a law. For, when the bill is passed as a law, the Senate can then be able to pass the bill in the same language, or a similar language.

Peter Bell, the CEO and President of the National Reverse Mortgage Lenders Association, has said in a statement that this was a “major step” which is now done with while “one more” step is left to be done. The statement was made by the CEO and President of the Association under a unanimous consent, following the passing of the bill. It is true that the NRMLA has been working since really long in order to get a law such as this passed. The advocates of the industry have also been working for quite long in order to have the legislation passed. As the bill turns into law, it would be more like fruition after a struggle that has lasted for really long. Read the rest of this entry »

Creating Awareness for Forward and Reverse Mortgage

Picture Credit : financialproregistry.com

Picture Credit : financialproregistry.com

The blog has explored about different subjects, which have raised many queries associated with the better future of the loans as well as mortgage industry.

Is the reverse mortgage industry can become the suitable guide for the senior individuals belonging to our society? Can the personnel responsible for providing the mortgage amount become the correct person for helping senior people of community in all the situations, needing additional amount of finance? Is it possible that senior people consider reverse mortgage as one of the best and effective ways of receiving the needed financial assistance for payment of different types of care insurance premiums for longtime? The response to all these situations and queries associated with the mortgage sector is No.

Whether you talk about the forward mortgage or the reverse mortgage, you can never expect them as the top preference of the aged people seeking for financial assistance for getting money for buying homes or other needs. If you have a look over the past and present scenario of the mortgage sector, you may easily find that individuals have never considered the availing of loans or mortgages at the initial stage of requiring finance. Read the rest of this entry »

Way to Create Awareness for Reverse Mortgage

Lack of well awareness about the terminology and concept of reverse mortgages are among the biggest challenges to be faced by our mortgage industries in the future. Moreover, many people, who although have awareness about our offered products, but have deluged with misconceptions and untruths may create problem into the growth and development of our industry. By making familiar in front of the people and financial community of the mainstream has always remained our major weakness. Furthermore, frankly speaking, I have written and thought about the consistent use of different Hollywood spokesperson for representing our mortgage industry in front of public.

However, such techniques have cheapened and discredited our product, rather than giving help to us. I always give the credit to a famous people named Robert Wagner. Wagner has played vital role in bringing the product of reverse mortgage in to the eyes of public by overcoming the shadows. Few years ago, while travelling by bus or train, most of the passengers ask me about my job profile or about the activities, which I do for earning my living. During this time, when I give reply that I am involved in selling of mortgage products, they can easily recognize that it is the thing of Robert Wagner. However, all these incidents associated with our offered products and mortgage industry has become the matter of past.

Based on this incident, I can say that awareness about the reverse mortgage sector is not possible by the claims of Hollywood celebrity or any other multimillionaire personality. Now, the main question that comes in the mind of the people is that what exactly they should do for bringing awareness or give valuable education about the mortgage product to the industry. For this, we are available with two different options. Read the rest of this entry »

My Predictions for Better Reverse Mortgage Future

Picture Credit : athomesense.com

Picture Credit : athomesense.com

I have very much confidence about the bright future of various forms of mortgages up to the coming years. Nonetheless, many friends of mine oppose me due to my optimistic thinking towards the same. In this case, I said to the people that my predictions towards the profitable reverse mortgage future are not associated with my dream. Instead, my positive thinking has a close relationship with the science. Most of the people give their perception regarding the mortgage or finance sector depending on their designed business models or emotional levels. However, I have optimistic opinion about the same only due to the scientific reasons associated with the growth of reverse mortgages.

Whether we talk the mortgage, care insurance available for long duration and any other products having close relation with the longevity of funds, the products live for relatively long duration in comparison to the period or duration expected by the individuals before few years. Furthermore, you cannot deny that modern medication and scientific developments have improved the lifespan of our respected elders to a huge extent. Even, scientists and medical experts have introduced this fact as recorded pace in front of the public. Hence, it is obvious that if the human beings live for many ages after retiring from services, they may need suitable home equity for preventing their situations related to facing financial crisis during their entire life. In addition, such individuals may even need suitable retirement planning for making their future better. Our reverse mortgage sector can get this objective for many old-aged people or senior members belonging to our communities. In fact, our industry has become ground zero in terms of longevity of funds.

In fact, because of the increase in the lifespan of the human beings, professionals related to reverse mortgage sector have started accepting that the products will certainly develop from the present status in the form of ultimate resort product based on needs to a complete retirement planning instrument. Retirement planning instruments are some of the best instruments, which may help in the increase of the life of portfolio of old aged people for matching their expectancies of expanded life. Other than this, reverse mortgage before few years do not have any similarity with the mortgage of coming years. Financial assessments are the essential components of the mortgage industry. Hence, by gaining fundamental knowledge and expertise about the topic, we can expect to achieve success in the near future. Therefore, I will conclude my predictions by saying that it is only the education, which can bring drastic change in our mortgage sector.

What do we Understand by Reverse Mortgage?

Collateral security is a term which most of the people might have come across when they read about finance and loans. It plays a vital role when homeowners apply for loans. A term known as reverse mortgage could defined as the loan for the senior homeowners for using one portion of their house as a collateral security. This kind of loan is not required being repaid until and unless last surviving owner of the particular property moves out or expires. At that moment the estate is given about six months for repaying the balance from reverse mortgage or even sells the house for paying the balance.

In this scenario it states that remaining equity of the property would be inherited and the estate would not be liable for a price lessor than balance for reverse mortgage. One moment a question is asked regarding reverse mortgage simple answer which most would hear is:

In order to become eligible for the HECM reverse mortgage all the homeowners need to be minimum of 62 years in age. This limit has been set by the FHA. Moreover it is essential that home is owned free by the applicant and there happens to be no liens pending against the property. In case there remains the mortgage balance then that could be paid entirely from proceeds of this reverse mortgage loan during the time of closing. Usually there is no such income or the credit score which is required for applying forreverse mortgage.

Other property of reverse mortgage which needs to be highlighted is that reverse mortgage cannot be outlived. This means that the time till the homeowner lives at the property being primary residence while maintain each home as per the rules set by FHA the loans would never become due. At the time of the death of the homeowner home ceases for being a primary residence over a period of 12 months or more. The option with homeowner’s estate would be repaying reverse mortgage or putting the entire home for sale. In a scenario where the equity of the house goes beyond the loan amount the remaining equity gets paid back to estate.

Finally discussing the limits of a loan the amount is dependent on the 4 factors which are:

·           Age

·           Prevailing Interest rates

·           Appraised value for the house

·           Government Imposed Lending limits.

Florida Mortgage Brokers Leave Industry

Throughout the Florida property boom from the mid-2000s, probably the most lucrative methods to earn a living – or commit fraud – was to become a large mortgage broker.

A lot more than 82,000 Floridians have received a license just 4 years ago, however the collapse from the housing industry, more powerful certification needs and background inspections, and harder loan needs have cut that number by roughly 90 %: the condition presently licenses about 10,600 loan originators, because the profession has become known as.

Most got from the business or moved elsewhere. A few of the small percentage who committed crimes visited prison.

“Everyone thought about being a home loan broker or perhaps a Real estate agent, since it only agreed to be becoming an order taker,” stated Mike Ferrie, a Tallahassee realtor and district v . p . for that Florida Board of Real estate agents. “It had been easy pickings. Once the bottom hit, it got much more realistic.”

Lenders, re-named loan originators by new legislation, have the effect of verifying that loan candidates are financially qualified. They’re compensated a commission through the loan provider, typically between .5 and 1.a quarter of the borrowed funds or $500 to $1,250 per $100,000. They might work for banks as well as be used as realtors.

In Florida, many were carrying out fraud. Within the last 2 yrs, the condition has brought the country undoubtedly in mortgage fraud and it has been at or close to the top in several prior years. Florida paid for in excess of 27 percent of home financial loans across the country which were looked into this year, the LesixNexis Mortgage Resource Research Institute reported in May.

In 2008, The Miami Herald discovered that the condition had licensed 4,000 brokers who had criminal skills, with people of this group carrying out $85 million in fraud. Most of them were establishing hay purchasers to be eligible for a mortgages after which stole the cash.

Find out more…

April home sales number shows decline in Tampa Bay

It seems that economy still is in a weak stage as the April’s single-family home sales numbers fell. The decline is in a range of 12% in Hernando, Hillsborough, Pinellas and Pasco counties. In Tampa-St. Petersburg-Clearwater, home prices fell 14.56% in March 2011 relative to the same month in the prior year.

Source: TampaBay.com

Pending Home Sales Rise in March

March showed another sign of improvement in pending home sales as contract activity rising unevenly in six of the past nine months, according to the National Association of Realtors®.

The Pending Home Sales Index rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent is still below 106.2 in March 2010.

The data reflects contracts but not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said home sales activity has shown an uneven but notable improvement. “Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own,” he said. “The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards.”

Source: NAR

A Flaw in New Rules for Mortgage

[New York Times 2011-03-31] A Flaw in New Rules for Mortgages by FLOYD NORRIS.

If you want to get the government out of financing normal home mortgages, you have to find a way to bring in private capital — and on terms that do not make government-guaranteed mortgages a clearly superior product.

That fact was central to the Obama administration’s proposals to fix the housing finance market a couple of months ago, but it seems to have been forgotten by a collection of regulators that proposed rules this week on when banks will not have to retain risks for loans they make.

Perhaps inadvertently, they gave Fannie Mae and Freddie Mac, the government-run housing finance agencies, another competitive advantage. That is exactly the opposite of what needs to be done.

The proposals are generally good. They force lenders to shoulder some of the risk when they securitize all but the safest mortgages. That is what the Dodd-Frank law required, and for good reason. One of the big problems we had leading up to the crisis was that many lenders believed they could profit by making loans while leaving others to suffer if the loans went bad.

But where is that risk to be retained? The law says it should be retained by lenders or securitizers; an unwieldy group of regulators is left to fill in the details. The regulators are also supposed to determine what constitutes a “qualified residential mortgage” — one that is so safe that the lender need not retain any of the risk.

read more …

Australian House Prices Flat in February

The housing market continues to tread water, with the release of RP Data and Rismark figures showing prices didn’t grow at all during February, and rose by just 0.8% over the previous 12 months.

The best performing capital city during the February quarter was Sydney, but it only managed to record a seasonally adjusted 0.3% increase in prices, while Darwin suffered a much worse fate, with prices down 9%.

RP Data senior research analyst Cameron Kusher said in a statement the subdued capital growth is likely to continue for the foreseeable future, with values having “hardly moved” at all.

read more …


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