Reverse Mortgages: The Latest Buzz

8/13/2008

posted by N. Sioris

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Since the passage of the Housing and Economic Recovery Act of 2008 (H.R.3221) on July 30th, the National news media has been covering the story almost daily. Some authors are dissecting the bill in detail and offering nuggets of information about who the bill affects, who will benefit the most and what is still to be interpreted by HUD.

A couple of excellent news articles that emphasize the amendments that pertain to the FHA insured HECM reverse mortgages are highlighted below.


The first one was published by Kiplinger.com and written by Rachel L. Sheedy.
Ms. Sheedy says:

"Seniors Get a Gift From the New Housing Law"

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.
Continue Reading The Full Article Here


Another article recently in the news was written by Carol Lloyd with SF Gate.
Ms. Lloyd says:

"Reverse Mortgages: Bad Rap or Bad Idea?"

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.

Continue Reading The Full Article Here.

With all the changes about to take place with FHA insured reverse mortgages, there will be lots to talk about during the next weeks and months. We will keep you posted on all the developments as they occur.