Some good news, for a change!

It looks like there is a trend going on that is the elimination of the servicing set aside on FHA insured reverse mortgages. That extra $4,000 to $5,000 is now available to go back into the borrower’s pocket.  In a lot of cases, this will make up for the government’s formula change which reduced the amount which FHA would insure.  

Too, the whole concept of a “servicing fee set aside or escrow” is one which most seniors can’t be made to understand, and its existence on disclosures adds confusion to a process which the government has already made too confusing.  I’ve never been more pleased to see something go away.

I think this is the first positive change I have been able to report since maybe 2006?  If this keeps up, I could actually start blogging again without fear of generating depression! 

So, find a senior who is in a bind and can’t borrow money though the regular channels, and let that person know there is a way out!

It Happened.

Well, I’ve been far too busy handling fires as of late to post on the blogging page. But, just so you all will know, the budget crisis for FHA did reach the head that I knew would occur, and the HECMs guarantee formula was cut by approximately 10%. So, seniors are getting less money on a reverse as of October 1. It isn’t like I didn’t say it would happen, right?

Closing a reverse mortgage

After seeing a few mistakes made at reverse mortgage closings more than once, I put together this page with 10 quick pointers for attorneys to read prior to closing a reverse mortgage. I hope that it will make everyone’s closings go more quickly and smoothly!
http://members.cox.net/rscottmeyer/hecmclosing/closing.htm