Latest Agenda in the Reverse Mortgage Industry
The Confederation of Reverse Mortgage Lenders always monitors the reverse mortgage industry to detect recent happenings and change of policies sometimes before they even take effect. This way they are better placed to help their members adapt to take best advantage of any changes in the environment. Present reverse mortgage industry is agog with the latest new FHA program which introduces the HECM Purchase loans or Purchase Reverse Mortgage Loans.
This new HECM loan program came into effect on January 1st, 2009. Many reverse mortgage practitioner are still busy trying to fully understand the new concept and to predict how it would affect the industry. The Confederation of Reverse Mortgage Lenders is planning on a series of seminars and workshop to educate the senior public on the new purchase loan program and also to train its members on it.
The purchase reverse mortgage loans are designed for seniors who would love to enjoy the benefits of a reverse mortgage loan but who would also love to move out of their present home to another. In the past, a reverse mortgage loan beneficiary had to remain in his home but with the new purchase program an individual could decide to move to another home for any reason such as being closer to family or friends.
All HECM purchase loans are mandatory insured by FHA. When a senior applies for this loan, the value of his old home is calculated using the actual market value. The senior then locates a new home that he/she would like to move to. The new home is paid for. The senior only has to make a one time down payment which is deducted from the value of his old home and the balance given to the senior. Seniors who benefits from this scheme do not need to make monthly repayments and do not risk losing their homes as long as they reside in the new home.
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