Comments on: Value Of FHA Insurance Fund Down, What Does It Mean For Reverse Mortgages?

By: David

David — Fri, 05 Dec 2008 00:14:02 +0000

mrreverse,

I guarantee most seniors with reverse mortgages are not taking monthly income? You comment is crazy. I would guarantee in percentages most are doing the line of credit. In addition to your comment you mention banks should question motives for taking all cash? Is it the banks money or the seniors money? It is not your business or the banks business as to what the senior is doing with there own money. Its there equity they can do whatever they choose so stay out of it.

FHA is paying out the MIP in areas hard hit by home values. Not enough to justify the 2% they charge in addition to the .5% on the outstanding balance but they are definately paying money out.

By: mrreverse

mrreverse — Thu, 04 Dec 2008 23:09:21 +0000

most seniors are taking out a monthly income so this way seniors will be able to pay back what they owe. except in cases where Insurance people and investors have talked people into taking all the cash and there is no equity left. Banks should question motives for taking out the cash. Money was you to better their life style.

By: Travis De Renzo

Travis De Renzo — Thu, 04 Dec 2008 22:19:14 +0000

I would only agree that “HECM insured mortgages are in a shaky position” if the amount available to folks was a higher percentage and if there weren’t FHA limits (all of which wouldn’t be prudent).

I highly doubt that FHA has paid or even anticipates many HECM losses, but that is simply my speculation.

By: Travis De Renzo

Travis De Renzo — Thu, 04 Dec 2008 17:52:17 +0000

I cannot imagine that Reverse Mortgages are the source of much, if any, FHA losses. So why should seniors absorb the costs of irresponsible pricing on other pools of risk.

By: mrreverse

mrreverse — Thu, 04 Dec 2008 16:05:38 +0000

I always thought that the FHA insurance fund for reverse mortgages were not the same as Regular FHA. seniors pay 2% while FHA purchase charge 1.50% seniors get cheated again same as social security money being used for other purpose’s. Same with counseling fee’s no cost if your purchasing or refiancing a forward mortgage.