REVERSE MORTGAGE PRODUCT & INDUSTRY UPDATES

The FHA Modernization Act of 2007
Reverse Mortgage Product Features and Updates - You only have to be 60 years old for this reverse mortgage.

The FHA Modernization Act of 2007 (S 2338) passes in the U.S. Senate yesterday. What does this do for seniors and the reverse mortgage industry?
• Raises the FHA loan limits in higher values areas from $362,790 to $417,000. Many senior living in homes with the $362,790-$600,000 were not getting the optimal benefit choices with a reverse mortgage because of the limited proceeds and choices.
• Eliminates the cap on the volume of reverse mortgages FHA can insure.
• Allows the FHA HECM reverse mortgage to be used for home purchase.
• Cooperatives become eligible for the FHA HECM reverse mortgage.
• Lowers the origination fee on FHA HECM reverse mortgages from 2% to 1.5%
This bill is a bipartisan bill and our hopes it is sent swiftly to the president to sign into law.

PRIME ADVANTAGE FIXED JUMBO REVERSE MORTGAGE now offers option to buy down the rate of your loan. It now also offers the borrower the option to take the proceeds as a tenure payment plan (guaranteed fixed income for life). Bank of New York is now officially Everbank.

REVERSE MORTGAGE WITH LOWER CLOSING COSTS AND EARLIER ELIGABILITY –starts at age 60. “Simple 60” and innovative reverse mortgage product gives access to cash at a younger age & for lower costs. Proceeds can be used for any purpose and may be received in a lump sum, line of credit or combination. The proceeds are appropriate for smaller and interim goals.

If you or someone you know has looked at reverse mortgages in the past and was turned off by the costs, take a look again. Competition is rising. What does that mean for the borrower? There are more choices, lower costs, more options and a better life with financial security. My goal is to provide you and your clients with the latest information on reverse mortgages so you can decide if it appropriate for your needs and goals. Call Angella for a detailed evaluation 866-949-7030.