Oregon Reverse Mortgage Info

Eugene Loan Guy is now Whidbey Loan Guy

Fred Chamberlin — Wed, 04 Jan 2012 20:29:02 +0000

I have moved! I am now located in Oak Harbor Washington with Pinnacle Mortgage Planning, a sister company to Alpine Mortgage Planning. I am still doing the same thing, just a bit farther north. Laurie is still in the Eugene office and there to help you. I apologize for not updating sooner but it has taken some time to get settled.

I am still associated with Alpine Mortgage Planning in Eugene and still licensed to do mortgage business in Oregon and Washington but have dropped my California license. Since almost everything is done by e-mail, text and scans anymore, there shouldn’t be a lot of change for my friends and customers from Oregon. However, since I am not in Washington, my company name is Pinnacle Mortgage Planning, not Alpine. Same company, different name in a different state.

So, how about my contact information? Well, all of my Oregon contact information is the same. You can still reach me at the same place, it just gets forwarded. For those in Washington, I have new contact information. Contact me at my Washington office, Pinnacle Mortgage Planning, 3157 N Goldie Rd., Ste. 107, Oak Harbor WA, 98277, 360-682-6913/541-221-3455 cell, I am always ready to help with the mortgage process. I am also in the process of compiling some Washington specific blog sites for future use.

I am still on top of what is going in the real estate marketplace and have people that I trust to work with in Eugene. Thanks for your continued support. I look forward to updating this on a regular basis, now that I am settled in.

Navigating the mortgage approval process doesn’t have to be daunting. With me on your side those hurdles can be overcome. I am available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA loan or refinance using VA, I am here to help. Contact me at my Washington office, Pinnacle Mortgage Planning, 3157 N Goldie Rd., Ste. 107, Oak Harbor WA, 98277, 360-682-6913/541-221-3455 cell or through Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-743-2966/541-221-3455 cell or by e-mail. Only you can make the choice it is time to get the process started.

Oregon Reverse Mortgage Lending….What is in store for the future?

Laurie Willis — Mon, 18 Jul 2011 20:07:15 +0000

Availability and terms of Lane County Reverse Mortgages could be changing rapidly. As Reverse Mortgage lenders adapt to changes brought about by the two biggest Reverse Mortgage players in the market a real gap has emerged.

For homeowners who are “house-rich, but cash-poor,” Reverse Mortgages can be a lifeline that enables senior citizens to remain independent while meeting basic needs. However, declining home values and a collapse of mortgage markets have had a major impact on all aspects of Reverse Mortgages.

The release of additional products like the HECM Saver may bring additional choices to seniors, but it has also made Reverse Mortgages more complicated, and therefore led to more scrutiny from Congress and regulatory agencies charged with protecting consumers. In recent years, Congress has passed two sweeping consumer protection laws aimed at unsuitable financial products but also hitting Reverse Mortgages.

In a recent report by the AARP Public Policy Institute, it was noted that Reverse Mortgage borrowers are getting younger in years, not older. “The trend toward borrowing at earlier ages raises concerns about the long-term impact of reverse mortgages on financial security. This, coupled with more borrowers taking out a lump sum at closing, the report says that “more research is needed on the consequences of Reverse Mortgages for long-term financial stability.

As new, less experienced agencies enter the market, it’s important to work with a professional who will provide safe and affordable Reverse Mortgage options.

Laurie has been working with Reverse Mortgage clients for well over 6 years and has a strong grasp on guiding you through the process-from start to finish.

Feel free to give us a call. We’re always available to offer sound advice and information on whether a Reverse Mortgage is the right option for you.

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?

Remember, we offer information and sound advice with no pressure.

Harvard report shows many seniors not moving upon retirement

Laurie Willis — Wed, 18 May 2011 20:29:10 +0000

The Mobility Rate (rate at which households report having moved) among seniors has declined due to the toll the financial crisis took on both the equity in their homes and their retirement accounts, according to a March 2011 report from Harvard University’s Joint Center for Housing Studies.

The report states that mobility rates have been trending downward since the mid-1980’s. The 2008-09 economic recession further accelerated the downward trend in mobility because so many owners were left underwater (or nearly so) on their mortgages, making it difficult for households to move; Mobility rates among older homeowners posted the sharpest drop. According to one figure, the mobility rate for those aged 55 or older dropped 37.5% between 2005 and 2009.

“Many seniors who planned to retire and move to a different home deferred that decision after the recent financial crisis took a toll on both the equity in their homes AND their retirement accounts,” the report says. The study goes on to say than many of those who had owned their homes for long periods of time “had paid down significant amounts of debt,” meaning they would still have home equity and be candidates for a reverse mortgage.

Results from a 1995-2007 American Housing Survey show that 62% of the 75 and older crowd has been residing in the same home for 20 or more years. And, the report says, these homes are typically less valuable since older homeowners are less likely to remodel their homes to modern standards or expectations. This, in addition to a depressed housing market, makes it less likely that seniors will find it worthwhile to sell their home, but more likely that they may want to obtain a reverse mortgage.

Although the baby boomer generation generally lives in newer (and thus more valuable) housing, trends suggest that as they near retirement age, they may have more incentive to remain in their homes to stay close to grandchildren or continue to work, and less incentive to move because of the home’s decreased value in the overall market.

In the short-term, we are likely to see mobility rates remain below their long-term trend. Seniors with dreams of downsizing in today’s market may want to investigate whether a reverse mortgage might be a financial tool worth using.

Remember, we offer information and sound advice with no pressure.

Reverse Mortgage Closings to Rise Above 80,000 Units in 2011

Laurie Willis — Fri, 29 Apr 2011 18:05:29 +0000

As the senior citizens in Eugene/Springfield gets older each year, the opportunity of using an FHA Insured Reverse Mortgage might be the answer to many monetary problems.

The New York Daily news is reporting that while the number of Reverse Mortgages originated nationwide fell 35% to 72,683 in 2010, demand is expected to rise with the release of the HECM Saver. However, as with all Reverse Mortgage products, consult with us for advice on which one is best for you.

Reverse Mortgages require no monthly payments from borrowers. Loans are made for up to just over half of the value of borrowers’ homes, less any outstanding liens against the property. The maximum property value to lend on is currently $625,500.00; the loan is due and payable when the borrowers die, move out or are gone for 12 consecutive months.

Insured by FHA since 1989, reverse mortgages gained popularity in the past decade. But their use dropped sharply last year.

The decline occurred, in part because in late 2009, the FHA reduced the amount of money borrowers could receive from reverse mortgages by 10%. At the same time, home values remained depressed. Both factors make it more difficult for would-be borrowers to qualify for loans.

Demand may likely get help from a new, lower fee version of the loan called the Home Equity Conversion Mortgage Saver. Industry experts are expecting a rise in reverse mortgage closing to climb to between 80,000 and 85,000 units nationwide, up from 72,683 units closed in 2010.

The Saver loan has about 1/3 lower fees than the traditional reverse mortgage product. The tradeoff, however, is that the Saver loan payout is smaller than the standard loan’s.

For cash-strapped seniors looking for a short term solution, the HECM saver may be a benefit.

Remember, we offer information and sound advice with no pressure.

What about your credit cards when you die?

Laurie Willis — Wed, 27 Apr 2011 21:49:28 +0000

(Editor’s Note: Now and again we try to cover other items that are of interest to seniors other than reverse mortgages, today, we are covering credit card debt.)

What happens to the balance on a credit card upon your death?

Short answer is: It depends.

Factors such as where you live, whether the card is a single or joint account, and if any assets are left in the estate can all come into play.

Spouse’s Account in Decedent’s Name Only

If your spouse dies, you may or may not be responsible for any credit card debt. If the credit card is only in the decedent’s name, the credit card company typically makes a claim against the estate to receive the balance owed, according to the FreeScore Website. If no assets remain, the credit card company simply writes off the debt as a loss.

Spousal Joint Account

If you share a joint credit card account with your spouse, you are liable for any balance remaining if your spouse dies. If you are only an authorized user on the account rather than a joint account holder, you are not responsible for paying the credit card balance. If you live in a community property state (Oregon is not one but California and Washington are), you might be responsible for the debt whether you are a joint account holder or not. Not all community property states have the same rules, check with your state government to see which laws pertain to you.

Your Parent’s Card

If your parent dies with credit card debt and you are not a joint account holder, you are not responsible for it. Credit cards are unsecured debts, meaning they are not attached to an asset, such as a car or a house. However, as in scenario #1, the credit card company can make a claim against your parent’s estate to receive the balance owed.

Debt Collectors

Even though you are not legally responsible to pay a deceased family member’s credit card debt unless you are a joint owner on the account or unless you are a spouse living in a community property state, that does not necessarily stop collection agencies from trying to get your to pay. If a bill collector contacts you to try to get you to pay the debt of a deceased family member of which you are not responsible because of the reasons above, simply hang up the phone. If they continue to attempt collection after they have been informed you are not the responsible party, file a report with the state Attorney’s General Office.

Executors

If you are the executor of the estate, do not rush to pay bills too quickly, says Mary Randolf, author the “The Executor’s Guide,” on MSN Money. If you pay the credit card bill when it comes in, you might not have enough money in the estate to cover funeral costs, for example. If there are no assets, you should send a letter to other creditors stating there are no assets, and include a copy of the death certificate. If there is money left for credit card companies, you would pay them or divide the money that is left in the estate between creditors.

Eugene/Springfield Reverse Mortgage program could change Friday

Fred Chamberlin — Mon, 28 Mar 2011 21:51:25 +0000

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.

RECENT ARTICLE IN WALL STREET JOURNAL SAYS “REVERSE MORTGAGES NOW LOOK CHEAPER”

Laurie Willis — Mon, 06 Dec 2010 23:23:58 +0000

Reverse mortgages have long been considered one of the most expensive ways to extract cash from your house. But that is changing as some of the country’s biggest reverse mortgage lenders are slicing closing costs-helping some affluent homeowners who want to generate additional income.

One of the biggest criticisms of reverse mortgages has been the fees, which can total 4-5% of a home’s value. But the new cuts in fees (and rates, too) mean that some homeowners can save $10,000 or more on closing costs.

Why are lenders cutting costs now? TO DRUM UP BUSINESS! From October 1, 2009 to March 31, 2010, Home –equity-conversion (or HECM) mortgage volume fell 22% from the same period a year earlier. One reason: In response to falling home values, the Department of Housing and Urban Development cut the amount of equity that reverse mortgage borrowers could extract by 10% last October. Lower principal values, coupled with the fact that seniors have been dismayed by falling home values have kept many homeowners from taking action. Click on the banner below for an excellent webinar on the ins and outs of reverse mortgages.

Another factor: In the past two years, lenders have started securitizing reverse-mortgage loans by converting them into Ginnie Mae-backed bonds. Popular with investors because of their government guarantees and high yields compared to Treasurys, these bonds also have been more profitable for issuers than selling them to Fannie Mae, the main alternative, says Peter Bell, president of the National Reverse Mortgage Lenders Association in Washington. In a nutshell, higher profits mean lenders can cut closing costs.

Seniors should consider more than closing costs in deciding whether a reverse mortgage works for them, and if so, which type. It is also a good idea to get your family involved. One drawback of a fixed-rate reverse mortgage is that you have to draw down the entire loan amount up front and pay interest on the entire amount across the life of the loan. However, the fixed-rate option usually gives the borrower access to the most cash available.

If you are concerned about how you will navigate the coming economy into retirement, contact us. We are reverse mortgage specialists and will help analyze your financial situation so that you can secure your financial independence and gain the cash that you need. We are here to help. Please use us as a resource to help you learn more about the reverse mortgage process.

Identity Theft Huge Problems for Seniors

Fred Chamberlin — Mon, 11 Oct 2010 19:59:51 +0000

Identity theft is the fastest growing theft throughout the United States with over 11.5 million identity theft victims so far according to www.identitytheft.info. In many ways, senior citizens are perfect targets for those involved in identity theft.

Because a senior has a different lifestyle than younger generations in that they don’t have children around, and can plan their time around their wants and needs, it means they are free to take the day and go to the coast or take a trip to the casino if they want to. However, this lifestyle is not all fun. In some respects it also opens them, more than other age groups, to identity theft.

Seniors have more wealth and higher credit limits on credit cards than younger consumers. They are also less likely to guard their identity. Often they are also less likely to report a case of identity theft than their younger counterparts for fear that their families or caregivers may deem them incapable of handling their own affairs and try to take control. Identity thieves know this and plan to take advantage of it as much as is possible.

Identity thieves will take advantage of anyone they can, it isn’t limited to just senior citizens, but it is also a case of going where the money is. When the famous (or is it infamous) bank robber Willie Sutton was asked why he robbed banks, he said: “I rob banks because that is where the money is.” Since senior citizens have the money and the credit, identity theft is a prime way to get it.

So, the FTC is working to educate through their Deter, Detect and Defend program giving a lot of information in a very short video. Identity theft is real and it can have a very negative effect on you ability to get a mortgage. Follow the instructions on this video, getting your credit report is free.

We are available right now to help you with the loan process and know the ins and outs of FHA, VA, USDA and conventional financing. We can also assist you with the people that can help if you are a victim of identity fraud. We can’t fix your credit, but can put you in touch with those that can help you. Contact us at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 Fred’s cell or by e-mail.

Reverse Mortgage Training Webinar Scheduled

Fred Chamberlin — Wed, 15 Sep 2010 20:46:25 +0000

Not everyone likes to read all of the material out there on a subject, and often times it is easier to listen and watch. Because of that, we have scheduled a webinar about the Insiders Guide to Reverse Mortgages.

The Webinar is scheduled for Wednesday at 4 p.m. PDT. Please just click on the button below and you will be taken to the registration page. The information provided should prove beneficial to anyone looking to find out about Reverse Mortgages.

Navigating the mortgage approval process can be daunting. You need someone on your side. we are available right now to help you with the loan process and know the ins and outs of Reverse Mortgages and FHA, VA, USDA and conventional financing. If you want to buy a home using an FHA reverse loan or refinance using VA, we are here to help. Contact Laurie or Fred at Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401, 541-342-7576/541-221-3455 (Fred) cell or by e-mail. Only you can make the choice it is time to get the process started.

Reverse Mortgages are down for year nationally

Fred Chamberlin — Tue, 10 Aug 2010 00:50:32 +0000

Given the amount of advertising being done for reverse mortgages in Oregon and nationwide, it is surprising but the number of reverse mortgage is actually down. “This article explains a lot of the reasons behind reverse mortgages actually being off nearly 40 percent so far this year. Not only that, but the annual pace translates to only 70,000 transactions nationally for the entire year.

Wholesale and retail lenders active in the reverse mortgage market are less than half of past year’s lenders, according to Reverse Mortgage Insight, watching industry trends.”

In my opinion, reverse mortgages should be on the rise as interest rates are at all time lows, fees are lower than they have been on reverse mortgage, stock portfolios are oftentimes cut in half or worse and baby boomers reach retirement age. So, the question is, Why?

The first answer has to do with property values. A lot of seniors that still owe money against their home no longer have enough equity to qualify for a reverse mortgage due to falling property values, but that doesn’t explain the large number of seniors that own their homes outright. It may be for them that they believe they can’t get enough from their home now, with the reduced values, but in reality, with the changes in the program to mostly fixed rates from the primarily adjustable reverses in the past, more money is often available.

Some may think waiting for the recovery of the housing market may be their best bet, however, there are possibilities that FHA will change maximum mortgages for reverse mortgages in the future (down) and make this the wrong choice. There are others that are taking advantage of historic low rates on forward mortgages, but this still leaves them with monthly payments.

So, what does that leave? I think it is a lot of an public relations problem. A number of critical reports in 2010, from the National Consumer Law Center, Consumer Reports, US News & World Report, and the Comptroller of the Currency, put a lot of people off of reverse mortgages. The report from the Comptroller of the Currency even compared reverse mortgages to subprime mortgages which I believe is a injustice to the program. I believe sentiment on reverse mortgages has swung too far in the opposite direction – from complacent acceptance to paranoid rejection – and will at some point swing back.

One bright spot for reverse mortgages was reported in Reverse Mortgage Daily in that for the first time since December 2009, reverse mortgage were on the rise in July. This could mean that the market has hit bottom. Continued erosion of retirement accounts and low rates and fees on reverse mortgages could be just the ticket for many seniors in the days to come.

It has always been Laurie and my belief that an informed consumer can make a better decision than one that is making their decision based on feelings. These articles and reports are worth reading and should be considered before taking out a reverse mortgage. Reverse mortgages are not for everyone, but they are for more people than are taking advantage of them currently.