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July 03, 2011

Reverse Mortgages Change - Big Banks Leave

Big Banks Leave

Potential reverse mortgage borrowers may be concerned with big banks such as Wells Fargo and Bank of America leaving the reverse mortgage business. Both HUD and the National Reverse Mortgage Lender’s Association assure consumers have nothing to fear and reverse mortgages are here to stay. With Baby Boomers aging and being underfunded funded for retirement, Boomers will be working longer, sharing housing and looking toward resources like reverse mortgages to supplement retirement income. The reverse mortgage market is sure to expand with new products and more choices.

Wells Fargo and B of A will continue to service their portfolio of reverse mortgages, nothing will change. Consumers will continue to have multiple choices of reverse mortgage lenders. FHA insures these loans against lenders going under and consumer’s loan balance exceeding their home value when the loan becomes due. By law the FHA insurance fund must operate at least at par (balanced budget anyone? Make sense?) for added assurance.

I f you have a reverse mortgage question, Call Angella Conrard, Reverse Mortgage Adviser and Certified Reverse Mortgage Professional at 866-949-7030. No sales, just great information and outstanding service.

Posted at 10:16 AM in Reverse Mortgages, Senior News |

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