J.G. Wentworth Expands From Structured Settlement To Reverse Mortgage Business

J.G. Wentworth is planning to expand outside of the structured settlement industry and into the reverse mortgage business.

The company is currently the largest purchaser of future payment products and is now looking for licensed mortgage brokers or lenders to build a nationwide retail reverse mortgage business.

“Initially, this leader will evaluate the current reverse mortgage market, assess the opportunity, work with senior management in setting up a new business entity, help in the licensing process as well as determining the best internal procedures and processes to be put into place to have the business up and running from day one,” said the companies job opportunity listing.

Since J.G. Wentworth plans to start the division from scratch they will have to obtain licenses in each state which will take time.

J.G. Wentworths large investment in marketing will allow them to reach a large amount of reverse mortgage borrowers.

In 2007 the company stated that they invested over $43 million on marketing through various forms of media.

In 2009 they had problems during the financial crisis and filed for chapter 11 bankruptcy protection.

Now that the company is reorganizing it’s plan is to invest more into reverse mortgages and less in structured settlements.

SOURCE

Supplementing Retirement with a Reverse Mortgage

Supplementing retirement is a major concern. The average person lost 45 percent of his investment portfolio during the Great Recession of 2008 – an amount high enough that 100% recovery, let alone earn the return expected, is unlikely before retirement. Combine this with the fact that Social Security benefits are likely to decrease in the coming years as the country struggles to afford an aging population, and the solution is clear: you need a way to supplement your retirement.

While there are several options for supplementing retirement, none costs you less upfront than a reverse mortgage. A reverse mortgage is just like taking a loan off the equity in your home but, instead of you receiving a bulk amount, disbursements are metered out. Here are some important facts about reverse mortgages:

1.  With a reverse mortgage, you get a monthly check for the rest of your life or a specific period (e.g. 30 years), depending on which type of reverse mortgage you choose.

2.  If you choose a specific period, even if you outlive that time, a reverse mortgage allows you to remain in the property so long as you maintain home insurance and keep the property taxes current.

3.  The amount you receive in a reverse mortgage will, of course, depend on the value of your home.

4.  If you pass away before the equity has been exhausted, your heirs will have the option to receive the remaining equity in monetary form or pay back the disbursements you have received and keep the property.

5.  You must own your home outright in order to qualify for a reverse mortgage, and it must be your primary residence.

6.  There are also various costs that must be accounted for in a reverse mortgage.

7.  You will have to pay an appraisal fee in order to verify the value of your home. Fees can be as high as $500 and could need to be paid upfront (not common, but it happens).

8.  There is a registration fee to consider as well. The registration fee is usually listed at 2% of the appraised value of the home, up to $200,000, plus an additional 1% on any value above $200,000. This fee is almost always rolled into the reverse mortgage.

9.  Closing costs are also an issue. They are usually less than $2,000 and include the cost of your credit report, title insurance, recording fee, flood certification, escrow fees, pest surveys, etc. Exact closing costs will vary somewhat, depending on your reverse mortgage provider and the area in which you live.

10.  Mortgage insurance may also add heavily to the cost of a reverse mortgage. Mortgage insurance costs 2% of the value of the property upfront, plus an additional 0.5% of the property value every year thereafter. Whether you have to pay this separately or it is rolled into your reverse mortgage will depend on your reverse mortgage provider.

SOURCE

HUD Awards $9.5 Million in HECM Counseling Grants

The Department of Housing and Urban Development announced nearly $73 million in counseling grants that will go to more than 500 national, regional and local organizations to help families find decent housing and to prevent future foreclosures.

Of the $73 million, HUD is providing $9.5 million in HECM counseling grants, an increase of 21% from 2010.  During a call with the media last week, Brian Siebenlist, Deputy Director and Program Support for the Office of Single Family Housing told RMD the amount of money going to fund HECM counseling is actually much greater.

“The bulk of these awards are what we call comprehensive housing counseling grants, and reverse mortgage counseling is an eligible expense under those grants as well,” he said.  ”So our investment is way bigger than the $9.5 million.”


In addition to counseling for reverse mortgages, the grants will assist families to become first-time homeowners and remain homeowners after their purchase. HUD-approved counseling agencies not only provide homeownership counseling, but also offer financial literacy training to renters and homeless individuals and families.

“These organizations are on the front lines of helping families who are desperate to remain in their homes,” said  Shaun Donovan, Secretary for HUD. “Now, more than ever, it’s crucial that we support these agencies that are working with struggling families on a one-to-one basis to manage their money, navigate the homebuying process, and secure their financial futures.”

NeighborWorks America received $4.9 million in HECM counseling grants, followed by the National Foundation for Credit Counseling ($1.6 million), Credability ($1.47) and Money Management International ($1.4 million).

SOURCE

Senior Housing May be Finished Ahead of Schedule

As you pass the Forest Home Farms off of San Ramon Valley Boulevard, you may notice a great deal of housing sprouting just behind the Glass House Museum.

The project, Valley Vista, is scheduled to be completed by May – much sooner than expected.

Valley Vista is a project spearheaded by American Baptist Homes of the West, a Pleasanton-based developer that's among the top 20 affordable-housing builders in the nation, according to its website.

Valley Vista is the newest affordable senior housing in San Ramon, covering a 4.7-acre site. The property is near the Lucky Supermarket, restaurants, pharmacies and shops.

A public transit stop for County Connection line #121 will be built at the front of the property, providing access to greater San Ramon, as well as Dublin and Walnut Creek BART stations. Plans also call for on-site transportation and activities, according to the City of San Ramon website.

If you are an interested senior or know a good candidate, check the development. You may just discover your new home. Brooke Harris, San Ramon's housing programs manager, plans to take applications next month.

February workshops are planned to explain the project and to take applications. As soon as these dates, times and places are released, San Ramon Patch will let you know. Postcards with more details also will be mailed to residents of San Ramon.

The affordable senior-housing units are expected to go quickly, just in time for baby boomers beginning retirement. Contact American Baptist Homes to get on the waiting list.

SOURCE

Freddie Mac On The Mortgage Market

To compliment Pershing Square’s presentation on the state of the mortgage market, Freddie Mac (the Federal Home Loan Mortgage Corporation), the public government sponsored enterprise includes in its quarterly results a review of the housing market that is always very interesting. Regarding Freddie Mac, the situation seems to be stabilizing with almost no draws in the last quarter (only $100 million in q3), which is particularly good considering the 10% interest of the preferred government senior. Not only that, but Freddie Mac’s single family delinquencies peaked in February  2010 to 4.2% and improved six quarters in a row. The corporation  buys mortgages on the secondary market and sells the same as mortgage based security in the open market.

With the rising rate of mortgage in the last few months, people were unwilling to invest as there seemed to be a lower gain for the investors. The Wall Street Journal suggested that Fannie Mae and Freddie Mac  be asked to consider forgiving some amount of the principal on underwater mortgages. People turned to banks for investment, looking for places with lower interest rates for borrowing. With the sharp increase in mortgage rates, refinancing of home loans by borrowers have dropped. Investors who have already bought recently issued mortgage bonds have high chances of losing out on returns and will also face a slower rate of interest.

The Obama administration has pressurized the GSES through FHFA to participate in a program that allows banks and other creditors to write down mortgages and hand off the reduced loans to the FHA. It’s done with the intention of dealing with the loans that are severely underwater. The GSES will relinquish their options of collecting from mortgage insurers or return loans to banks when a loan defaults.

SOURCE

Mortgage Rates and Refinance Rates December 18, 2010

Mortgage rates and refinance rates are higher again today, continuing the up trend of the past two weeks. 30 year conforming mortgage ratesand conforming refinance rates are averaging 4.88 percent, up from the prior day’s average 30 year conforming home mortgage rate and refinance rate of 4.84 percent. 30 year home mortgage rates and home refinance mortgage rates in Georgia are lower averaging 4.83 percent.

Today’s 15 year home refinance rates and mortgage rates are averaging 4.24 percent, up from yesterday’s average 15 year home mortgage loan rate and mortgage refinance rate of 4.11 percent. 15 year home mortgage rates and refinance rates in Michigan are higher averaging 4.34 percent.

December 18, 2010 Mortgage Rates and Refinance Rates

30 year jumbo refinance mortgage rates today and mortgage rates today are averaging 5.42 percent, down from yesterday’s average 30 year jumbo home loan rate and refinance loan rate of 5.46 percent. 30 year jumbo home mortgage rates and home refinance rates in New York are higher averaging 5.55 percent.

15 year jumbo refinance mortgage rates and current mortgage rates are averaging 4.57 percent, down from yesterday’s average 15 year jumbo loan rate and 15 year jumbo refinance rate of 4.59 percent. 15 year jumbo home mortgage rates and mortgage refinance rates in California are higher averaging 4.86 percent.

Following is a more in-depth mortgage report released by MonitorBankRates.com earlier this week:

Mortgage Rates & Mortgage Refinance Rates

Conforming 30 year mortgage rates and refinance rates are averaging 4.66  percent, up from last week’s average 30 year mortgage rate and refinance rate of 4.49 percent. 

Current conforming 15 year home refinance rates and home mortgage rates are averaging 4.05 percent, an increase from the previous week’s average 15 year mortgage loan rate and refinance loan rate of 3.86 percent. This is the first time in several months 15 year conforming mortgage rates are above 4.00 percent.

30 year jumbo home mortgage rates today and home refinance rates today are averaging 5.32 percent, up from last week’s average jumbo mortgage rate and jumbo refinance rate of 5.02 percent.

Current 15 year jumbo home mortgage rates and refinance rates  are averaging at 4.60 percent, up from the prior week’s average jumbo mortgage loan rate of 4.23 percent.

Use our free mortgage calculator and free mortgage refinance calculator to calculate your monthly mortgage payments.

SOURCE

Bad Credit Refinance Home Mortgage Loan

“You can apply for bad credit home mortgage refinance loan if you have a bad credit and your home is in danger of being foreclosed. That’s always much better before it is too late. Nevertheless, it might not be that easy to qualify for a home refinance loan especially when you have a poor credit record. And when you are considering applying for a mortgage refinance loan with a bad credit, it could be important for you to have a complete understanding of the eligibility requirements which could have a direct bearing on the processing of your refinance home loan application.”

You can apply for bad credit home mortgage refinance loan if you have a bad credit and your home is in danger of being foreclosed. That’s always much better before it is too late. Nevertheless, it might not be that easy to qualify for a home refinance loan especially when you have a poor credit record. And when you are considering applying for a mortgage refinance loan with a bad credit, it could be important for you to have a complete understanding of the eligibility requirements which could have a direct bearing on the processing of your refinance home loan application. Additionally, you need to take into consideration certain critical parameters such as mortgage rates as well as terms and conditions provided on the new refinance home mortgage loan. There could a few other factors that are needed to be considered as well. Here is some crucial information pertaining to the same which could guide you in your endeavor.

1. Identify the real need
First find out if you really need a refinance mortgage loan at all. To that effect, you need to primarily determine if obtaining such a loan is advantageous for your specific financial situation. This could be very much essential before you are actually out to request for a refinance loan.
2. Contact your existing lender
Once you have thought over the need for a refinance first or second mortgage loan, it is desirable to approach your existing mortgage loan lender instead of contacting a new one. This could help you to save a lot of time. After knowing the criteria for home refinancing from your current lender, you can quickly provide the necessary documents so that you obtain a fast approval. Remember, there could be situations when your present lender might offer you a much better option at the most suitable terms and conditions than any new lender.
3. Determine refinancing costs
While securing a home mortgage refinance loan for bad credit could appear to be a tempting proposition, it could be very much imperative for you to determine the hidden costs such as processing or closing fees associated with this kind of a loan. You need to consider this before you apply for the mortgage refinance loan by calculating the new monthly mortgage installments carefully. In any case, just ensure that the monthly payments on the new home refinance loan are not higher than what you are paying on your existing mortgage loan otherwise refinancing makes no sense.

SOURCE

Deferred Interest Mortgage

A lot of potential home buyers believe there are only a few kinds of mortgage plans, but you should be happy to know there are a variety of home loan types and ways to go about financing the purchase of a property. One kind of mortgage that may be best suited to your budgeting needs and savings goals is the deferred interest mortgage plan.

A deferred interest mortgage may also be known as a graduated payment mortgage. It allows you to make monthly mortgage payments below the actual total amount of interest due.

How Deferred Interest Mortgages Work

Let’s say you have a mortgage loan of $200,000 and you decide to get a deferred interest mortgage loan for it. If the monthly interest comes to $500, for example, and your deferred interest mortgage plan allows you to make a payment of $400, then you now still owe $100 in interest for that month. With a deferred interest mortgage payment, the $100 you owe will be added to the principal of the loan. So at the end of that first month, the balance of your initial loan is now $100,100.

Who Should Make Deferred Interest Payments?

Most experts agree that you should only try to get a deferred interest mortgage payment plan if you really have to. One scenario that could justify this types of mortgage is if you’re buying a new house but have yet to sell your old one. This way you can get a bigger loan and keep costs down in the short run.

To learn more about deferred interest mortgage payments and other types of mortgage loans, be sure to consult with your financial advisor or a trusted bank representative. He or she will be glad to go over all the many kinds of mortgages available so you that you can determine which is the best one for you.

SOURCE

Veterans Face Tougher Lending Environment in 2011

VA loans have thrived in the face of foreclosure. But they haven't been immune to the overall tightening that has recently reshaped the lending industry.

The result is that these flexible loans aren't quite as forgiving as they once were.

More restrictive credit and underwriting standards have no doubt kept thousands of military members from purchasing or refinancing a home in the past two years. VA-approved lenders nationwide have ratcheted up their requirements in the wake of the subprime meltdown. Qualified borrowers can still purchase a home with no money down, but veterans and active-duty service members without a credit score of at least 610 are finding it tough to find financing.

Lenders might start to loosen up a bit in the coming years, but in most cases a more conservative approach to home lending will continue to define the industry and govern the path to homeownership.

For America's service members, the reality is both stark and simple: Building a solid credit profile is more crucial than ever before.

Good Credit is the Gateway
The days of no-document and bad credit loans are gone. Regulations enacted in 2010 have added further layers of protection to the home-purchasing process.

Refinance policies have also become more restrictive. For years, service members could get an interest rate-reducing refinance loan without a credit check or an appraisal. Today, they're paying appraisal fees and seeing their credit scrutinized.

FULL ARTICLE HERE

Underwater California Home Loans

There was a time when California home loans ranked as top investments. During the heady days of the residential real estate boom, California housing values skyrocketed. Investors could buy a mansion in California for $1 million and then sell that same mansion, after updating it just a bit, for $3 million or more just two years later.

That has changed. The real estate slump has hit all major markets across the United States. However, no state has been slammed as seriously as has California. Housing prices here have plummeted. That million-dollar mansion in California might now be worth just $500,000.


This means that there are far too many underwater homeowners in the state. Homeowners are underwater when they owe more on their jumbo loans in California than what their homes are worth. As an example, the investor who owes $800,000 on a California home loan but owns a house that has a current market value of just $500,000 is $300,000 underwater.

Not surprisingly, many homeowners are lining up for a California home loan refinance. They want to lower their monthly mortgage payments by reducing the interest rates attached to their existing home loans.

The problem is that homeowners can’t refinance when they are underwater. Before approving California refinance loans, lenders typically require that homeowners have at least 20 percent equity in their homes. Those owners whose homes have fallen in value since they purchased them might not have this much equity available.

The government, in 2009, launched its Home Affordable Refinance Program, HARP, to help such homeowners. The program provides financial incentives to lenders who agree to refinance the home loans of homeowners who don’t have that magical equity level of 20 percent. In fact, homeowners who owe up to 125 percent of their home’s values can refinance under the program.

Unfortunately, the latest statistics show that far too few homeowners have managed to refinance their California home loans under this government program. It’s one of the many reasons why neither the residential housing market nor the economy in general has show much life in the last year or so.

Until mortgage lenders start cooperating more closely with government efforts to allow homeowners to more easily obtain refinancing, the country can expect to see an even higher number of housing foreclosures. Many homeowners could avoid foreclosure if they could just reduce their mortgage payments by gaining a lower interest rate. Unfortunately, too many of these struggling homeowners are also underwater on their mortgage loans.

Many critics blame the mortgage lending industry for fueling the economic crash. Lenders gave out too many home loans to borrowers with low credit scores and low monthly incomes. Not surprisingly, many of these loans went bad, taking a score of mortgage lenders with them.

Today, mortgage lenders, especially when it comes to refinancing the mortgage loans of their already existing customers, have gone too far in the opposite direction. And this might be preventing the national economy from experiencing the recovery so many are waiting for.

SOURCE

CML says mortgage lending figures are not a surprise

A senior source from the Council of Mortgage Lenders (CML) has described how new figures published by the organisation have not come as a surprise to the industry.

Michael Coogan, director general of the institution, made his comments regarding statistics showing mortgage lending had fallen in October, with the number of house purchase loans recorded dropping by four per cent compared to September and by 16 per cent in comparison to October last year.

"With 2009 lending levels artificially inflated by the end of the stamp duty holiday, we expected to see a decline in lending year-on-year," said Mr Coogan.

He went on to note that consumer confidence is still suffering as a result of the recent comprehensive spending review and predicted the mortgage market will be "stable but small" for some time.

Last week, the CML supported the Financial Services Authority's decision to defer the expansion of the approved persons scheme, describing the move as "sensible".

SOURCE

Reverse Mortgages Provide Financial Independence for Seniors

Reverse mortgages help seniors stay in their homes while maintaining their dignity and financial independence, and provide them with the flexibility to use their built-up home equity while preserving their other resources to cover unexpected emergency expenses without depleting their savings or bankrupting them, say senior advocacy groups and reverse mortgage industry leaders.

A report released on December 8 by Consumers Union and other special interest groups claims that federally insured reverse mortgages are not financially viable tools for seniors and cautions seniors from using reverse mortgages. The report is based on dated information and does not take into account pro-consumer reforms adopted by the industry and distorts loan information to scare consumers and seniors about the highly successful reverse mortgage program that earns high marks in customer satisfaction.

"Seniors should know that reverse mortgages are sound economic tools that allow them to leverage their own wealth to continue to support themselves and live in their homes longer. The Consumers Union report does a disservice to seniors by repeating myths about the program. The reality is, the reverse mortgage program is government-backed and heavily regulated by FHA to protect consumers and their interests," said Jeff Lewis of the Coalition for Independent Seniors. "It simply is not fair to say that 26 instances of questionable practices among over 2000 lenders nation-wide is reason not to explore reverse mortgages to help you meet your financial needs."

Thair Phillips, President of RetireSafe, a 400,000-supporter strong national advocacy group for older Americans, believes that reverse mortgages are an important option for seniors.  He said, "Having a financial option that allows seniors to remain in their homes is a godsend to our members who have obtained reverse mortgages in these troubled financial times.  Seniors don't want to depend on the government but would rather use the equity they worked so hard to build up in their homes as a way to remain in their home and continue their older years in dignity."

The Consumers Union report relies heavily on outdated information that has appeared in previous Consumers Union reports and does not take into account the consumer protections adopted by the industry in recent years, including: a law banning cross selling of additional financial products; stronger requirements for financial counseling; regulations against deceptive advertising; and consumer protections that prevent Seniors from losing their homes.

The federally backed Home Equity Conversion Mortgage (HECM) program is administered by the Federal Housing Authority (FHA). FHA works tirelessly to ensure that the HECM program is a "break even" for the taxpayer and also ensures that adequate consumer protections are in place. As a result, FHA has developed HECM products that provide more consumer protections and more economic value to the borrower than any similar products offered in the private sector.


SOURCE

Financially, home care must be priority

Nearly 15,000 Ohioans turn 60 each month, and as the population ages, the cost of caring for the elderly and disabled is gobbling up more and more tax dollars.

To slow state spending on long-term care and ensure that services are available to those in need, Ohio must shift its focus from high-priced nursing-home care to more affordable home- and community-based services.

A new report from a state-appointed advisory council that comes a month before Gov.-elect John Kasich takes office cautions that "projected growth in our senior population will create unsustainable expenditure increases in Medicaid long-term care. To be prepared as a state, we must take action today."

The Unified Long-term Care Systems Workgroup recommends in the 15-page report released today that the state provide an array of services, particularly those that allow residents to live at home as long as possible.

"We need to make sure the folks who need nursing-home care get it while diverting as many as we possibly can to home- and community-based care," said Barbara E. Riley, director of the Ohio Department of Aging.

The savings can be significant.

The state spends about $1,400 a month per person to provide home-care services through the PASSPORT program, while nursing-home care for an individual costs taxpayers three times that, or $4,321 a month.

The report includes an assessment by Miami University's Scripps Gerontology Center of a state initiative that moved 2,327 Ohioans home from nursing homes between March and November. Researchers calculated an annual savings to the state of $79 million and found that if all the individuals remained in the PASSPORT program for an average of 39 months, taxpayers would save $260 million.


SOURCE

Learn about the Equity in your Home

Their are many of you (Seniors) who are on the verge of losing your home or who are running low on financial options in the future. What everyone has been hearing about today is getting a Reverse Mortgage, which simply is using the Equity in your very own home to pay you. Your very own money from your own home will give you the peace of mind you have been looking for. Why wait? Learn about how to get a Reverse Mortgage today!

http://www.explainreverse.com

Reverse Mortgage Tips for Consumers

If you need cash, consider alternatives to a Reverse Mortgage first.

Washington, D.C. - infoZine - Seniors are being told that having a reverse mortgage ends their financial worries. This is not altogether true. Despite the claim that the borrowers don’t have to pay back the loan until they either die or permanently move out of the house, there are ongoing financial obligations that seniors need to keep in mind. Before depleting this last major asset through a reverse mortgage, make sure that this finite amount will be enough to meet your financial needs for the future. Would-be borrowers must think about how much money they will still be paying in continuing expenses once they have a reverse mortgage.

Borrower Beware-Continuing Expenses with Reverse Mortgages

- The borrower needs to stay current on all payments owed for property taxes, homeowners’ insurance and, if applicable, all homeowners’ association fees.
- The borrower is also obligated to adequately maintain the home or the loan may be called, for example, if the borrower cannot repair a leaky roof, wood rot or termite infestation.
- If the senior defaults on the loan, there may be a foreclosure (Borrowers with reverse mortgages can and do experience foreclosures).


Alternatives to Reverse Mortgages


Explore eligibility for less expensive programs or benefits

Reverse mortgages are very expensive loans, and as such, they should be considered only as a last resort. Before considering a reverse mortgage, a senior should first determine if he or she qualifies for less expensive programs that offer monetary assistance or cost-cutting benefits. These programs include Supplemental Security Income (SSI), Medicaid, prescription drug discount programs, energy and telephone discount programs, City and County grants and low-cost home improvement loans (sometimes called “single purpose” loans), state property tax postponement programs, In-Home Supportive Services, and Veterans pensions to pay for in-home care.



READ MORE

Consumer Reports Publisher Pushes For Reverse Mortgage Reforms

A new report from consumer advocates is calling for stricter oversight of the reverse mortgage market and new consumer protections for borrowers. The report was released by Consumers Union (the nonprofit publisher of Consumer Reports), California Advocates for Nursing Home Reform and the Council on Aging Silicon Valley.

"Reverse mortgages are a very risky deal for borrowers who don't understand the complicated terms of the loan and how quickly fees and interest charges can add up," says Norma Garcia, senior staff attorney for Consumers Union. "Reverse mortgages should only be a last resort for seniors who want to stay in their homes and have no other alternatives to supplement their income."

The groups issued their report as the newly authorized Consumer Financial Protection Bureau (CFPB) examines the reverse mortgage industry. The Federal Reserve Board is also considering a set of proposed regulations on reverse mortgages.

In their examination of reverse mortgages, the consumer groups documented a number of concerns that they say underscore the need for stronger oversight by the CFPB. These concerns include misleading market claims and the cross-promotion of unsuitable financial products.

Seniors are particularly vulnerable to misleading marketing, the groups say, citing research by the University of Iowa that concluded that 35% to 40% of the elderly population studied had impaired decision-making abilities.

Another cause for concern is the rise in reverse mortgage loan bailouts. A Consumer Reports investigation found that the annual sum of reverse mortgages taken over by a federal insurance fund more than quadrupled in four years, from $81.3 million in 2004 to $381.3 million in 2008.

"Lenders are aggressively marketing reverse mortgages while assuming almost no responsibility for whether the loans are suitable for borrowers," says Prescott Cole, senior attorney for California Advocates for Nursing Home Reform. "Now that reverse mortgages are becoming more widespread, it's time for some commonsense oversight to protect consumers and taxpayers."

The groups, which argue that lenders and brokers should be required to consider whether the loans put borrowers at risk of losing their homes and if there are other more viable alternatives available to the borrower, recommend a number of reforms.

For example, the groups are pushing for regulators to extend prohibitions on cross-promotions to non-home equity conversion mortgage loans. Insurance agents and brokers should be held liable for selling an annuity when it is purchased with reverse mortgage funds, the groups say.



SOURCE

Winterize Your Home To Save Money

BAKERSFIELD, Calif. -- As colder weather moves into Central California, many local homeowners are turning on their home-heating systems for the first time in many months. According to the Energy Information Administration, home-heating costs this winter are expected to rise by 3 percent compared to last year.

Your BBB reminds homeowners that protecting your home before the harshest weather takes hold can save money in the long term.

· Furnace. Have your unit inspected to make sure it is in safe, working order. Additionally, check to see that the furnace filter is clean, the thermostat is accurate and the pilot light is functioning.

· Heating ducts. According to the Department of Energy, a home with central heating can lose up to 60 percent of its heated air before that air reaches the vents. This occurs if ductwork is not well-connected, improperly insulated or if air travels through unheated spaces.

· Fireplace. Using your fireplace can keep you from running the heater as often, but make sure the flute is closed when it is not in use. This will keep cold drafts out of your home. If you notice a leak, have your chimney inspected or purchase a screen to cover your fireplace.

· Gutters and outside pipes. If freezing temperatures are forecasted, wrap outside pipes and clear your gutters to prevent possible cracking. Any clogs or excess water will expand as they freeze.

· Caulking and weather stripping. According to the EarthWorks Group, the average home has air leaks that amount to nine square feet. Inspect the caulking and weather stripping around windows and doors for cracking and peeling. If you can feel air coming in, it also means heat is getting out.

BBB reminds consumers that most of these steps can be done inexpensively and can help prevent spending hundreds, or sometimes thousands, of dollars in repairs.



SOURCE

Seniors tapping homes for cash

For two decades, reverse mortgages have allowed senior citizens like James Pysher to tap a portion of the equity they've built in their homes without incurring the monthly payment that comes with a home equity loan or line of credit.

That made it possible for the recently retired Pysher and his wife Sandra to hang on to the small but comfortable house on a sprawling Plainfield Township property they've called home for more than 18 years, despite losing a good chunk of their income.

Without the loan, Pysher said, they were barely making ends meet.

"There was no money left at the end of the month for us anymore with all our utilities and bills," said Pysher, 71, who took out his reverse mortgage in May through Whitehall Township-based AFC Reverse Mortgage. The cash allowed him to pay off his regular mortgage and still put some cash in the bank.

Pysher said he's now fairly confident that their home with its old stone fireplace can continue to be the chosen location for big family gatherings.

As more baby boomers approach retirement with longer life expectancies and stock investments that haven't lived up to expectations, the number of seniors exploring reverse mortgages to supplement their income is expected to increase significantly, said Peter Bell, president of the National Reverse Mortgage Lenders Association.

The number of government-insured reverse mortgages fell to 78,757 in the fiscal year that ended in October. That followed three record 100,000-plus years of reverse mortgages being backed by the Federal Housing Administration, according to the agency.

Last month, to appeal to new retirees, increase interest in the program and compete with home equity lines of credit for seniors with smaller borrowing needs, the FHA introduced a federally insured reverse mortgage option called the Saver.

One of the new program's primary draws is the near elimination of upfront mortgage insurance costs, which have been seen as one of reverse mortgages' biggest drawbacks.

Standard FHA-insured Home Equity Conversion Mortgage reverse mortgages carry an initial upfront premium of 2 percent of a home's value. The new HECM Saver mortgage, introduced in October by the FHA, has an upfront premium of just 0.01 percent in exchange for a lower loan maximum.


SOURCE

Reverse Mortgage Can Be Your Best Friend

The agency said it was concerned about the potential for older consumers to be victimized by bad advice or outright fraud.  ”As reverse mortgage loans become more available, licensees may not be fully cognizant of the propriety of, and the necessary business practices required to limit risks to consumers in this Commonwealth who use, reverse mortgages.”

Still The Owner

During the loan and the remainder of its life, you cannot be asked to leave the property, as you still are the owner and deed holder. This is the case whether you outlast the performance of the loan or not. As far as your heirs go, they are still entitled to the property upon your passing. The estate will be settled in the normal way, the property will be passed on to the heirs, and they can refinance out of the reverse mortgage. If they decide not to reside in the property, they can sell the unit, pay off the reverse mortgage, and keep the balance of the monies of the estate. They have one year, from the passing of the note holders, to settle the mortgage.

Retired People Can Benefit From A Reverse Mortgage

Retired people can benefit from reverse mortgage, as they typically need additional cash flow for their living, especially if they do not have a regular means of income. One should be at least 62 years of age to access and benefit from it. It allows one to live in one’s home and postponing the monthly loan payment until the owner moves, dies or the property is sold. Once the house is sold, the amount owed is deducted from the selling price, before being paid to the estate.

FHA

The higher hurdles for FHA loans, used in about a fifth of U.S. home purchases, add to challenges for a housing market already struggling with record-low sales and surging foreclosures. While lax lending fueled the bust that led the U.S. into recession, the new requirements will stifle the real estate recovery needed to revive the economy, said Ron Phipps, president of the National Association of Realtors.

SOURCE | REVERSE MORTGAGE SOLUTION (EXPLAINREVERSE.COM)

Mortgage Tax Break in Crosshairs

The co-chairmen of the White House's bipartisan deficit-reduction commission said Tuesday they would propose a significant paring of popular middle-class tax breaks, including the mortgage-interest deduction, and push for an increase in the Social Security retirement age.

The recommendations will be included in a final debt-cutting proposal from Democrat Erskine Bowles and Republican Alan Simpson to be unveiled Wednesday. The ideas are part of a broad and controversial proposal to tackle the U.S. government's debt through a combination of spending cuts and an overhaul of the tax code. The proposal would hold down the growth of the federal debt by at least $3.8 trillion by 2020, and perhaps more, the two said at a news conference. Messrs. Bowles and Simpson said their plan was preferable to a debt crisis like Europe's that could ensue without changes to fiscal policy.

The chairmen, who head the National Commission on Fiscal Responsibility and Reform, told reporters Tuesday they would delay a final vote on their package until Friday, because they wanted to give the group's 16 other members more time to study their recommendations.

The plan is expected to fall short of the 14 votes needed to issue a formal recommendation to Congress and the White House, people familiar with the matter said. The chairmen could still push to have some of their ideas incorporated into budget proposals from the White House and congressional Republicans.

The commission's recommendations aren't binding, but Messrs. Simpson and Bowles have managed to seize the nation's attention with some of their dire warnings and the sweep of their proposals. Retiring New Hampshire Republican Sen. Judd Gregg predicted that no matter how many votes the recommendation receives, it will become the foundation for discussions next year about how to tackle the debt.

READ FULL ARTICLE

Securing your home and financial future

Learn how we can help you save your home. If your a Senor age 60 or older we can help you to secure your financial future and take the complicated thinking out of your retirement. For information regarding Reverse Mortgage please visit our website at www.explainreverse.com