MortgageReverse

AARP Conclusions

 

Conclusion 1: FHA’s Home Equity Conversion Mortgage insurance program has
successfully created the foundation for the financial infrastructure of the reverse
mortgage industry.

Conclusion 2: Reverse mortgages have enabled older homeowners to address a range of
needs and desires with a high level of initial satisfaction.

Conclusion 3: Loan costs are too high

Conclusion 4: Consumer knowledge about and confidence in reverse mortgages is low.

Conclusion 5: More research is needed on how consumer uses of reverse mortgages
change over the course of their loans as well as on the long-term impact of these loans
on their financial well-being.

 

Some of the recommendations that they gave are outdated…

 

Recommendation 5: Clarify that the HECM non-recourse limit means that borrowers or their estates will never owe more than the value of the home.

Recommendation 8: HUD and proprietary reverse mortgage programs should develop “reversible mortgages” that can shift from forward to reverse mortgages as homeowners age and their ability to make mortgage payments decreases.

Sounds a lot like the Simple60 to me.

Recommendation 7: HUD and proprietary reverse mortgage programs should develop reverse mortgages that permit borrowers to increase their available loan funds in the future without all the costs of a formal refinance.

Recommendation 8: HUD and proprietary reverse mortgage programs should develop “reversible mortgages” that can shift from forward to reverse mortgages as homeowners age and their ability to make mortgage payments decreases.

Recommendation 13: Sufficiently fund reverse mortgage counseling services.
AMEN!

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