Comments on: Reverse Mortgage Loan Limit Increase Included In New Stimulus Plan

By: T R

T R — Sun, 08 Feb 2009 17:09:15 +0000

To Real Estate Buzz:

$625,000?? Where, in Hawaii?

By: Larry

Larry — Sun, 08 Feb 2009 02:35:07 +0000

Raising the loan limit to where it was to start with is right, but how about lowering interest rates, insurance costs and closing fees?

By: The 2009 Stimulus Package, Real Estate, and Mortgages « Eastside Real Estate Buzz

Fri, 30 Jan 2009 20:30:12 +0000

[...] position to go back to work. Anything that can be done to ease their situation is significant. The stimulus plan is increasing loan limits for reverse mortgages. The FHA HECM (Home Equity Conversion Mortgage) loan is now $625,500 while conventional loan limits [...]

By: Mr Reverse

Mr Reverse — Fri, 30 Jan 2009 01:24:58 +0000

will they rasie our cap 6000 for all the extra work we do going back for redisclosures, Loans falling off do to apprsail value . We ar earning less and cost us more. MIP fees going up, appcoming in low. Apprsailes fees higher all 3rd party fees going going up except our fees.

By: John A. Smaldone

John A. Smaldone — Fri, 23 Jan 2009 00:06:33 +0000

Good day,

I look at this artical and it makes me wonder why our legislators make everything so complicated. Now they are talking about using a 150% times the Freddie Mac limit, maxed out at $625,000. No, $417,000 flat limit (Easy to understand)was to simple for our legislators screwed up minds. Instead of increasing the $417,000 in high caost area’s like California with a max of $625,000, our great legislators have to put everyone in a tizzy again. When will it ever stop?

Have a good day,

John A. Smaldone

By: Mrreverse

Mrreverse — Thu, 22 Jan 2009 03:21:18 +0000

what about reverse mortgage purchase whic has now come in effect we are capped at 6000. Realtors can charge 6 or 7% commission. so on a 625,000=36,500.at 6% we are capped at 6,000 some thing Nrmla dosen’t figuer. We do the be the work on the pruhhrchase they find the property,
Plus interest changes daily it seams and we end up paying to close a loan,after we quoted a rate and thereare times we have to eat cost because, with higher margins less money for borrowers. We are now at 3.25% margin which end up a hopa loan.

By: Larry

Larry — Wed, 21 Jan 2009 18:17:56 +0000

I’m one of those ” Seniors ” caught between a rock and a HECM place. I have not trusted AARP since their endorsement of Hillarycare back in the early 80′s.

We are sitting on that bubble of home value depreciation combined with market share loss with retirement investment. We lost 30% home value and 20% retirement funding. I’m not whining, many folks my age ( 70+ ) are getting hit like this, some much worse.

An increase in the reverse mortgage limit will probably save our home, which we have worked all our lives to retire in. We were not given a free ride to purchase the home, no shortcuts or creative financing. Our credit rating was 766 and still is. We took out an equity loan and put every cent back into the home. With refinancing we paid off the equity loan and settled in with a comfortable 30 year fixed @ 6.25%. A year later our home had decreased in value to where we are barely keeping our heads above going upside down. Our retirement income dropped 30% and selling our home at a loss was not an option.

So you tell me…where did I go wrong..? I wasn’t greedy, I wasn’t biting off more than we could handle…I had no warnings from the government, financial advisor, folks in real estate…nobody. So if I sound pissed, its probably because I am. I know this forum is for people in the reverse mortgage business…I just wanted to let you know how some of us out here are looking to a reverse mortgage as their last option to keep their home.

By: T R

T R — Wed, 21 Jan 2009 16:55:58 +0000

In response to John Doe he is right on the money with the first part of his statement but AARP & NRMLA getting it right the first time had nothing to do with it. The 625K limit was in the bill but I remember a statement by FHA (and correct me if I’m wrong) that they did not want the higher limit because they wanted the lenders to have their proprietary products for the higher value homes. (laughable)
Also, I’m am speaking to loan officer’s who are actually having customers go through counseling in anticipation of the higher limit. We must have short memories. The first time around the reverse mortgage provision was taken out of the stimulus package because we were in such dire need that they just wanted to get a bill passed.
Today we are beyond dire need and don’t be suprised if this provision is taken out again to push a bill through quickly!