A REVERSE MORTGAGE COMPANY
Want to Know About the Changes in Reverse Mortgages?
Under new guidelines, reverse mortgages have become safer than ever.
© 2016 Western Lending. All rights reserved
"This material is not from HUD or FHA and has not been approved by HUD or a government agency."
WESTERN LENDING Granada Hills CA - 800.318.6324 - CA BRE LIC # 01401466 NMLS # 458780
- The new "60 percent rule" limits the amount of equity seniors can draw out in the first year (with certain exceptions).
- This was done to stop borrowers from burning through their proceeds and finding themselves in a cash flow bind again.
- There is also a pricing advantage for borrowers who draw 60% or less in that the up front mortgage insurance premium is only .5% for advances of 60% or less while it is 2.5% for advances over 60%.
- A new "Financial Assessment" (FA) was introduced to require seniors to share financial data for the first time.
- The idea was to make certain the borrower would be able to keep the home after they got the reverse mortgage and not just "delay the inevitable" of selling because they don't have the means to cover normal day to day living expenses.
- Another new addition to the program is the "LESA" (Life Expectancy Set Aside) which can take the form of being "fully funded" or "partially funded".
THE ONLY THING CONSTANT IS CHANGE
AT WESTERN LENDING WE ARE ALWAYS HAPPY TO ANSWER YOUR
QUESTIONS ABOUT THE REVERSE MORTGAGE PROGRAM