| REVERSE MORTGAGE |
Reverse Mortgage
Reverse mortgage information
Reverse Mortgage Myths
Myths about reverse mortgages
Free Analysis
Free reverse mortgage analysis
Reverse Mortgage FAQ
Frequently asked questions
Start a Reverse Mortgage
Getting started is easy
Reverse Mortgage Terms
Glossary of reverse mortgage terms
Reverse Mortgage Calculator
Online reverse mortgage calculator
|
| LIFE SETTLEMENT |
Life Settlement
Life Settlement Information
Life Settlement Benefits
Benefits of Life Settlements
Life Settlement Examples
Examples of recent settlement cases
Life Settlement FAQ
Frequently asked question
Free Life Settlement Quote
Free Life Settlement Quote
How to Qualify?
How to Qualitfy
Agents/Brokers
Offer your clients a life settlement
|
|
Reverse Mortgage Limits on HUD Lifted by Congress
Dec. 15, 2005 - The U.S. House of Representatives passed legislation last night that eliminates the cap on the number of reverse mortgages that can be insured by the Department of Housing and Urban Development, the National Reverse Mortgage Lenders Association announced today.
The Reverse Mortgage to Help America's Seniors Act, sponsored by Reps. Michael Fitzpatrick (R-PA) and Jim Matheson (D-UT), amends the National Housing Act by removing the existing cap of 250,000 reverse mortgages that HUD can insure at any given time. Right now, there are about 150,000 HECM loans outstanding.
A Senate version of the bill introduced by Senator Rick Santorum (R-PA) is pending approval. Both bills enjoy bi-partisan support in Congress and are endorsed by consumer groups, such as AARP.
"NRMLA commends Reps. Fitzpatrick and Matheson for their leadership in getting this bill through the House of Representatives," said Peter Bell, President of NRMLA.
"As the popularity of reverse mortgages continues to grow nationally, it's absolutely critical that the cap is removed to avoid a disruption in the marketplace."
During the most recent federal fiscal year ending September 30, HUD insured a record number of reverse mortgages—43,131—for a fifth consecutive year. The federally insured Home Equity Conversion Mortgage (HECM) accounts for 90 percent of all reverse mortgages made in the U.S.
When the HECM program was created by Congress in 1988, a cap was imposed so lawmakers could periodically monitor the program’s performance and costs to the government. Now that the program has a track record, Bell said there's no continuing need for a cap because the HECM program generates sufficient funds to cover its costs through mortgage insurance premiums paid by borrowers.
A reverse mortgage is a loan that enables homeowners 62 or older to borrow against the equity in their homes, without having to sell the home, give up title, or take on new monthly mortgage payments. Loan proceeds can be used for any purpose, and taken out as a lump sum, fixed monthly payments, line of credit, or a combination.
The loan amount depends on the borrower’s age, current interest rates, and the value and location of the home. A reverse mortgage does not have to be repaid until the borrower moves out of the home permanently, and the repayment amount cannot exceed the value of the home.
After the loan is repaid, any remaining equity is distributed to the borrower or the borrower’s estate.
A senior’s home does not have to be owned free and clear to qualify for a reverse mortgage. Reverse mortgages are often used to retire existing debt on a home.
NRMLA distributes a free information booklet on reverse mortgages, called Just the FAQs: Answers to Common Questions About Reverse Mortgages. Consumers can order it by telephone (1-866-264-4466, toll-free) or at NRMLA’s Web site, http://www.reversemortgage.org.
The Web site has extensive information on reverse mortgages, a state-by-state list of lenders, and a reverse mortgage calculator. To be listed on the NRMLA website, a lender must agree to abide by the Association’s Code of Conduct and operate in accordance with its Best Practices.
About source:
NRMLA is a nonprofit trade association, based in Washington, DC, whose members make and service reverse mortgages throughout the U.S. and Canada. Members sign a Code of Conduct pledging to abide by guidelines that assure fair, ethical, and respectful practices in offering and making reverse mortgages to seniors.
Free Reverse Mortgage Analysis
|
|
|
| Contact Us |
|
RTG Consultants, LLC
202 Lonesome Pine Dr.
Longwood, FL 32779
Phone: 888.9REVERSE
Phone:(888.973.8377)
Local: 407.774.0112
Fax: 206.333.0112
Email: Contact Form
www.rtgconsultants.com
|
 |
|
