Comments on: Jim Cramer’s The Street Says Reverse Mortgages Get More Attractive http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/ Reverse Mortgage News and Information Mon, 13 Feb 2012 00:19:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bob LaFay http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-14022 Bob LaFay Fri, 12 Dec 2008 05:17:20 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-14022 Larry, Please reference my post to David. I am open to any and all information about the HECM MIP Reserve. It should be of great import to all in the industry and to writers who make sweeping statements about one of the best products ever devised to address the financial needs of our Senior people who have substantial equity in their homes. Reverse Mortgages as offered by HECM FHA can be a great financial tool for the management of their assets. Larry,
Please reference my post to David. I am open to any
and all information about the HECM MIP Reserve. It should
be of great import to all in the industry and to writers
who make sweeping statements about one of the best products
ever devised to address the financial needs of our Senior people
who have substantial equity in their homes.
Reverse Mortgages as offered by HECM FHA can be a great financial
tool for the management of their assets.

]]> By: Bob LaFay http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-14021 Bob LaFay Fri, 12 Dec 2008 05:00:05 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-14021 David, Thanks for the input: my impression has always been that the MIP pool for Reverse Mortgages HECM FHA is a stand alone pool and not co mingled with the Forward Mortgage Pool of FHA I also hear that the RM pool is quite healthy. Can anyone corroborate and elaborate upon this subject? It is noteworthy that the upfront MIP for new Reverse Mortgages is higher than the standard FHA front fee. That is due to increase in January, 2009, but still will be lower than HECM fee of 2 points up front. David,
Thanks for the input: my impression has always been that
the MIP pool for Reverse Mortgages HECM FHA is a stand alone
pool and not co mingled with the Forward Mortgage Pool of FHA
I also hear that the RM pool is quite healthy.
Can anyone corroborate and elaborate upon this subject?

It is noteworthy that the upfront MIP for new Reverse Mortgages
is higher than the standard FHA front fee. That is due to
increase in January, 2009, but still will be lower than HECM
fee of 2 points up front.

]]> By: Larry http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-13999 Larry Fri, 12 Dec 2008 00:52:36 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-13999 I agree with Bob's comments. My whole point is that we serve the senior community who must be treated fairly and all of our dealings must be above reproach. Certain political figures seem bent on hurting the reverse mortgage industry's image in the public's mind - and they attack us on high costs. Never once have I heard of a public figure acknowledging the dis- proportionate share the government takes to fund the insurance portion of closing costs and monthly premiums. There ought to be a movement to segregate the reverse mortgage insurance fund from any/all other insurance fund(s). Because the major media so strongly supports the liberal direction our country is taking,they will never address this subject. The senior community should not be asked to fund the government's mismanagement of the insurance fund. Critics of the reverse mortgage industry need to address the government's role in keeping "closing costs" at their current levels. 'Nuf said. I rest my case! I agree with Bob’s comments. My whole point is that we serve the senior community who must be treated fairly and all of our dealings must be above reproach. Certain political figures seem bent on hurting the reverse mortgage industry’s image in the public’s mind – and they attack us on high costs. Never once have I heard of a public figure acknowledging the dis- proportionate share the government takes to fund the insurance portion of closing costs and monthly premiums. There ought to be a movement to segregate the reverse mortgage insurance fund from any/all other insurance fund(s). Because the major media so strongly supports the liberal direction our country is taking,they will never address this subject. The senior community should not be asked to fund the government’s mismanagement of the insurance fund. Critics of the reverse mortgage industry need to address the government’s role in keeping “closing costs” at their current levels. ‘Nuf said. I rest my case!

]]> By: David http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-13992 David Thu, 11 Dec 2008 23:06:06 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-13992 Bob, From what I understand the government is saying the MIP pool is not healthy. This is why I stating not to HOLD YOUR BREATH. Even if it were healthy it would be a long shot for the gov't to take a cut. I think I heard at one time they pool our MIP with the normal forward MIP. Therefore, the hit to the pool would be much greater. Not sure about this though. Bob,
From what I understand the government is saying the MIP pool is not healthy. This is why I stating not to HOLD YOUR BREATH. Even if it were healthy it would be a long shot for the gov’t to take a cut.
I think I heard at one time they pool our MIP with the normal forward MIP. Therefore, the hit to the pool would be much greater. Not sure about this though.

]]> By: Bob LaFay http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-13989 Bob LaFay Thu, 11 Dec 2008 22:50:20 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-13989 David Your response to Karen is consistent with the comments I have heard from HECM FHA lenders. We compromised with AARP and took a reduction in origination fees. We need to have adequate funds to pay our originators and staff. The new 2% first $200,000 plus 1% for any excess ,not to exceed $6,000 is fair to lenders and to Seniors. If the FHA MIP pool is healthy,perhaps a drop of 1/2% of origination fee could be welcomed news. Bob LaFay David
Your response to Karen is consistent with the comments I
have heard from HECM FHA lenders. We compromised with AARP
and took a reduction in origination fees. We need to have
adequate funds to pay our originators and staff. The new
2% first $200,000 plus 1% for any excess ,not to exceed
$6,000 is fair to lenders and to Seniors.
If the FHA MIP pool is healthy,perhaps a drop of 1/2%
of origination fee could be welcomed news. Bob LaFay

]]> By: David http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-13981 David Thu, 11 Dec 2008 22:03:36 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-13981 Karen, I could be wrong but I don't think Larry was saying lenders should alter the origination fee according to circumstances...that would never happen anyhow. He is talking about the governments 2% MIP plus .5% MIP throughout the loan as being to high. We as lenders have already taken our fair share of cost cutting... its now time for the government to take their cut. DON'T HOLD YOUR BREATH! Karen,
I could be wrong but I don’t think Larry was saying lenders should alter the origination fee according to circumstances…that would never happen anyhow. He is talking about the governments 2% MIP plus .5% MIP throughout the loan as being to high. We as lenders have already taken our fair share of cost cutting… its now time for the government to take their cut. DON’T HOLD YOUR BREATH!

]]> By: Karen Davis http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-13953 Karen Davis Thu, 11 Dec 2008 18:02:38 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-13953 I am in agreement with you, Larry. I would also like lenders to adjust origination fees according to the circumstances of each borrower . I am in agreement with you, Larry. I would also like lenders to adjust origination fees according to the circumstances of each borrower .

]]> By: Larry Tiffan http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/comment-page-1/#comment-13951 Larry Tiffan Thu, 11 Dec 2008 17:37:27 +0000 http://reversemortgagedaily.com/2008/12/10/jim-cramers-the-street-says-reverse-mortgages-get-more-attractive/#comment-13951 Good thoughts! As an industry, we remain relatively silent about the mortgage insurance issue. Its costs are disproportionately high - particularly with the new lending limit - as compared to the overall "closing costs". Well over 50% of the "high closing costs" are paid directly to the government to fund mortgage insurance. If the average life of a reverse mortgage is still between 7 and 8 years before it is paid off, more attention should be focused on the 2%. The reverse mortgage industry shouldn't be asked to fund Barney Frank's other mortgage industry challenges! Good thoughts! As an industry, we remain relatively silent about the mortgage insurance issue. Its costs are disproportionately high – particularly with the new lending limit – as compared to the overall “closing costs”. Well over 50% of the “high closing costs” are paid directly to the government to fund mortgage insurance. If the average life of a reverse mortgage is still between 7 and 8 years before it is paid off, more attention should be focused on the 2%. The reverse mortgage industry shouldn’t be asked to fund Barney Frank’s other mortgage industry challenges!

]]>