Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Losses could mount for FHA after reverse mortgage decision

Notify me of new replies via email
Mortgage Professional America | 03 Oct 2013, 04:00 AM Agree 0
The Department of Housing and Urban Development may see further losses from its reverse mortgage program following a ruling Monday rejecting a government policy that led some homeowners to face foreclosure following the death of a spouse
  • Ed Borden | | 03 Oct 2013, 09:39 AM Agree 0
    Good article, but one correction. The lender does not sell the home, the heirs do. The reverse industry has worked hard for years to dispel common misconceptions that unfortunatly keep needy seniors from applying. We don't need our own mortgage colleagues getting the facts wrong. BTW - I enjoy the MPA newsletter daily
  • Greg Crawford | | 13 Dec 2013, 03:46 PM Agree 0
    Does this really happen?: "brokers often encourage prospective borrowers to put only the name of the older spouse on the application." Broker's being villainized again.
    It seems pretty clear to me, and on every reverse mortgage ever originated here, that the approval and mortgage amount is based upon the age of the 'youngest' spouse-regardless of whether they are on the mortgage or not. Another issue at hand seems to be when a borrower has an existing reverse mortgage, re-marries, dies, and leaves the new spouse without a home, as the reverse mortgage now must be paid off. The judge, I perceive, has made a serious error in judgment. HUD is correct: the actuarial tables of life expectancy must remain valid, otherwise, the program will not continue to exist.
  • being human | | 13 Dec 2013, 05:13 PM Agree 0
    easy peasy. If someone takes out a reverse mortgage. then the mortgage should be first in line to be paid off in the will. I have seen seniors take out mortgages, then die 4 months later. The aires walking away with hundreds of thousands of dollars and tell the bank to keep the house. Stop lump sum payments and allow the surviving spouse to assume the mortgage.
Post a reply