Category Archives: FHA HECM

Eugene/Springfield Reverse Mortgage program could change Friday

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Changes in Regulation Z, Truth-in-Lending, take place Friday without intervention of the courts. This could have a huge effect on Reverse Mortgages in the Eugene/Springfield Oregon area.

There are a couple of lawsuits, complete with temporary restraining orders, being reviewed currently that could slow or stop the implementation of the change Reg Z makes in loan officer compensation. At this point, we are not certain of the effect this change will have on reverse mortgages going forward.

What we do know, is that Bank of America has announced they are getting out of reverse mortgages and that Wells Fargo has done nearly the same by closing their wholesale channel for reverse mortgages. Other lenders may be following suit.

Keep watching our site and we will keep you posted with all of the current information about reverse mortgages. Also, if you are interested, it might not be a bad idea to start the process while there are still lenders offering the program.

Contact Us

If you have questions about a Reverse Mortgage we will not pressure you to take one out, but it may be in your best interest to check out one now, rather than later. Please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Oregon Reverse Mortgage Competitive Pricing

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Lower Costs = More Money in Your Pocket

One of the biggest complaints I have heard about Reverse Mortgages is that the closing costs are too high. We, at Oregon Reverse Mortgage Info, have decided to do something about that. We have taken the bull by the horns, so to speak, and decided that we are not going to charge an origination fee for our Oregon Reverse Mortgages and instead rely on the rebate paid by the lender as our source of income on the loans.

What does this mean to the Senior Citizen when looking at their reverse loan costs? Well, previously most lenders charged the normal 2% fee on a reverse mortgage. However, the 2% fee was calculated on the value of the property, not the amount of the loan. So, if the property value was $400,000, the fee would calculate at $8,000 but would be $6,000 (maximum amount). That meant that the senior would receive $6,000 less than they could in the payout of the loan.

Now, the rebate is paid by the lender and even though there will be a loan fee charged, the rebate will offset that loan fee and the senior will receive the total amount in their pay out. This is our way of getting the maximum amount of cash to the senior that we can in an Oregon Reverse Mortgage transaction.

We are also working with lenders that do not charge for the “servicing set asides” and that can mean an additional $3,500 to $5,000 in the client’s pocket on a average loan. Everything we can do to make the process more streamlined and painless will be done for our senior loan applicants.

Contact Us

If you have questions about a Reverse Mortgage we will not pressure you to take one out, but it may be in your best interest to check out one now, rather than later. Please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

How Oregon Financial Planners View Reverse Mortgages

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When researching what our Oregon Seniors can expect with retirement, I found out that a record low of only 13% of responding seniors (in an Employee Benefit Research Institute survey) said they are very confident that they have enough money to live comfortably in retirement. Because retirement assets may continue to dissipate and entitlement programs may dwindle, many financial analysts view reverse mortgages as one tool to buoy finances.

When baby boomers are in their 70’s they may have to look to their houses for needed income support. Statistically speaking, at that time pensions may be gone and people will have to create their own income stream. It’s important to make sure you don’t outlive your assets; it’s not about stock market returns, but about how you are going to get a paycheck for the rest of your life.

For those better off baby boomers, reverse mortgages can be viewed more as a financial safety net, but, with time, experts believe the product’s popularity will continue to rise. For many of our senior citizens in financial difficulty, an Oregon Reverse Mortgage may be the only way out.

In the next 10 or 15 years Oregon Reverse Mortgages will be as common as the standard forward mortgages. Two of the biggest assets for retirees are homes and retirement accounts and once the retirement account is spent, an Oregon senior is only left with the home. Many seniors will have to access this equity to continue their income stream and possibly could not qualify if trying for a forward mortgage due to income or credit. Neither of these are a problem with an Oregon Reverse Mortgage.

In deciding whether to advise an Oregon Senior on a reverse mortgage, it’s critical to know their desire to stay in their home, whether they are in danger of depleting his/her assets, or might be facing a catastrophic event. That is why all of our Oregon Reverse Mortgage applications are one-on-one with our clients so that we can determine how best to help them.

Contact Us

If you have questions about a Reverse Mortgage we will not pressure you to take one out, but it may be in your best interest to check out one now, rather than later. Please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Oregon FHA Reverse Mortgages are not immune to FRAUD

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Oregon Senior Citizens are often a target of unscrupulous people trying to take advantage of them and the Oregon Reverse Mortgage program offers another way to do that. If you check out this previous post, you will see some of the ways Senior Citizens are attacked to take their equity away from them with a Reverse Mortgage.

However, there is help on their side. FHA has establish a HECM (Home Equity Conversion Mortgage – official name of reverse mortgage) Fraud Unit and they are always looking for ways to combat fraud that is targeting our Senior Citizens. In a recent issue of “The REVERSE Review“.” Michael Banner interviewed Inspector General Kenneth Donohue of the HECM Fraud Unit.

From his questions and the answers from Donohue, it appears that Senior Citizens are participating in some of the Fraud schemes, either knowingly or unknowingly. His article also pointed out that this is a serious problem and will meet with serious efforts on the different government agencies working together. Take a look at the article for more information.

If you have questions about an Oregon Reverse Mortgage and would like to discuss your questions or concerns, please contact Fred or Laurie at 541-342-7576 or make an appointment to come to our office, Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. We are here to help you and would be happy to ease your mind if you think you are being taken advantage of in the process.

Oregon FHA Reverse Mortgages Could Change Shortly

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FHA Says:

BIG PRINCIPAL LIMIT REDUCTION NEEDED

WITHOUT $250 MILLION HECM SUBSIDY

David H. Stevens, Assistant Secretary of Housing for the Federal Housing Administration (FHA) recently testified to the House Financial Services Subcommittee on Housing and Community Opportunity. He voiced his strong support of the administration’s reverse mortgage program. What happens there can have some major consequences to those Seniors contemplating an Oregon Reverse Mortgage in the future.

The need for this type of program is greater now than it’s ever been, due to increasing medical costs, declining employment/incomes, and less ‘savings’ in various types of pension funds/retirements accounts.

This comes as the Office of Management and Budget (OMB) requested an appropriation of $250 million to support the Home Equity Conversion Mortgage (HECM) in its FY2011 budget.

Stevens, referencing a survey conducted by AARP in 2006 told the committee the product has provided seniors with much-needed financial relief and was primarily used to pay for long term health care, enable home repairs and provide peace of mind that housing expenses now and in the future could be met.

In addition, Stevens said the program plays an important role in allowing seniors to age in place. “Keeping seniors in their homes and communities, close to familiar support networks, puts less pressure on our nation’s overextended nursing home infrastructure and the public resources that support it,” says Stevens.

According to his testimony, FHA’s analysis showed that to maintain the viability of the program for FY2011, an increase if the annual mortgage insurance premium from 0.05% to 1.25% and further reducing the principal limit factors (PLF’s) of approximately one to five percent, depending on the age of the borrower is necessary.

“Without the budget request, we would be forced to reduce the PLFs by an additional 21% in FY2011. This would significantly reduce the amount of funds that would be available to seniors (more than 30%), which, on average is a $23,000 to $27,000 impact,” said Stevens.

He closed by saying, “Any additional steep cut to the PLFs will result in serious decline in program level as HECMs would no longer be viable to many seniors who need to access their home equity while staying in their homes.”

What does this mean for you, if you are an Oregon Senior that has been contemplating a reverse mortgage?

NOW, rather than later might be the best opportunity to take advantage of all the benefits of a Reverse Mortgage. HUD has already cut the PLFs by 10% in September of 2009. A recent informal survey conducted by NRMLA showed that the 10% cut resulted in 20% fewer seniors qualifying for a Reverse Mortgage.

Contact Us

If you have questions about a Reverse Mortgage we will not pressure you to take one out, but it may be in your best interest to check out one now, rather than later. Please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Top Five Uses for Oregon Reverse Mortgage

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Why does a Senior Citizen take out an FHA HECM Reverse Mortgage in Oregon? According to a 4 year old survey by AARP, the top five reasons are:

  1. Cover expenses for health or disability
  2. Improve quality of life
  3. Pay off debt
  4. Home repairs and improvements
  5. Everyday and emergency expenses

I believe in today’s economy, we can also take note of the fact that an Oregon Reverse Mortgage has no income or credit requirements like a conventional or standard loan and therefore is often easier to qualify for. Foreclosure prevention is also high on the list of uses for an Oregon Reverse Mortgage.

Contact Us

If you have questions about a Reverse Mortgage and you are looking at these top five reasons, please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?