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Reverse mortgage changes will make seniors more responsible, HUD says

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Mortgage Professional America | 05 Sep 2013, 04:26 AM Agree 0
The Department of Housing and Urban Development has claimed changes to reverse mortgages will protect borrowers from eating up their equity
  • Tim | | 05 Sep 2013, 09:26 AM Agree 0
    These changes were not thought out. It will hurt the ability of many seniors to get an HECM and those who are in one now will NEVER be able to access additional funds or add on a spouse if needed. Way to go HUD on another bone head move that will back fire in the end.
  • Wm Matz | | 05 Sep 2013, 09:46 AM Agree 0
    Another "reform" that means those most in need of the program will be excluded. Another example of the old adage, "Banks lend money to people who don't need it."
  • James Wojtaszek | | 05 Sep 2013, 10:08 AM Agree 0
    This does not bode well for the customer because it restricts the amount of money they can access. The only way they default is not paying their taxes so the equity is going to disappear by having the Reverse.
  • Walter Clayton | | 05 Sep 2013, 01:56 PM Agree 0
    I have been doing reverse for 7 years. Most of my client need the reverse just to eat or buy their prescriptions. Most pay their bills (taxes and insurance and credit cards), then if they have enough money left buy food and prescriptions. HUD/FHA should be ashamed of themselves. We owe our seniors everything!!!
  • Carlos Camargo | | 06 Sep 2013, 12:33 AM Agree 0
    Amazing how the government and lawmakers try to spin the news of increased legislation and additional limits by stating that it will be "easier for seniors to use responsibly". A 15% reduction in benefits, increase in the mortgage insurance fees, elimination of the existing Standard & Low Cost Saver programs and limitations on how the proceeds can be used during the 1st 12 months is strictly more government restrictions to seniors that might be looking at the viability of the Reverse Mortgage program to assist them in their retirement. They claim that more seniors will be "set up for financial success", but in reality it is just going to limit how many seniors will be eligible for the program in the future and further limit how much of their equity that they can use.
  • Bob Allen | | 23 Dec 2013, 09:26 AM Agree 0
    The changes will keep the HECM program in place. It will continue to help many seniors and reduce the chance of foreclosure.
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