Rules and Regulations

The Expanding American Homeownership Act and Reverse Mortgage

In November 2007, US Senator Jim Talent introduced the Expanding American Homeownership Act.
Since 1934, the FHA has helped more than 34 million families purchase homes with affordable mortgages and fair payment terms. Still, many experts feel that the agency needs to adapt to today’s market place. The ultimate intent of the Expanding American Homeownership Act [...]

Reverse Mortgage and Lender Responsibilities

Today’s reverse mortgages were created to include many features that protect seniors from reverse mortgage fraud unscrupulous lenders who wish to scam or prey on seniors. In many cases, seniors aren’t aware that they are granted numerous rights and protections when entering the lending and borrowing arena.
Consumer safeguards are in place to [...]

The FHA and Reverse Mortgages

The FHA (Federal Housing Administration) was established in 1934. The organization was created to help borrowers during the bankrupt housing market of the Great Depression.
Today the FHA protects the interests of lenders and borrowers alike. The organization supports lenders by insuring bank loans, which guarantees lenders that loans will be repaid in the event [...]

The New Housing Law and Reverse Mortgages

President Bush signed a new housing bill on July 30, 2008, that raises the amount of money seniors can borrow on reverse mortgages, and lowers the cost of attaining that cash. Although this bill is, for the most part, a move in the right direction, seniors still need to be cautious when spending their home [...]

California Senate Bill 1609 and Reverse Mortgage

In June 2006, Governor Arnold Schwarzenegger signed California Senate Bill 1609. By doing so, he added another layer of protection against financial abuse of elders. The signing ceremony was held at Palo Alto’s Avenidas, a 35 year-strong non-profit agency serving seniors and their families/caregivers.

California Senate Bill 1609, authored by California Senator Joe Simitian, and coauthored [...]

Equity Key vs. Reverse Mortgage

Many older homeowners are choosing to seek information on reverse mortgages because they want to supplement their retirement income with their home equity. Reverse mortgage programs can be advantageous because all loan payments are deferred as long as the property remains the borrower’s primary residence.
The recent attention surrounding these loans has caused some seniors [...]

When the Loan Ends

Reverse mortgages are advantageous because all loan payments are deferred as long as the property remains the borrower’s primary residence. There is no obligation to repay the loan until the owner dies, the home is sold, or the owner otherwise vacates the property (for example, to move into an assisted-living facility).
So, what happens when [...]

Why Do I Have to Complete Reverse Mortgage Counseling?

Federal regulations mandate that all prospective borrowers be required to meet with an independent, third-party reverse mortgage counseling service before they are able to apply for a reverse mortgage.
The counseling sessions are mandatory because many seniors aren’t aware that they have numerous rights and protections in lending and borrowing. Today, many consumer safeguards are [...]

Reverse Mortgages and the Housing and Economic Recovery Act of 2008

The Housing and Economic Recovery Act of 2008 was put in place to “strengthen and modernize the regulation of the housing government-sponsored enterprises and expands the housing mission of these GSE.” Although the bill was primarily created to address the sub-mortgage lending crisis, legislators included provisions to regulate the reverse mortgage industry and offer greater [...]