In case you missed it, here’s what happened in reverse mortgage news this week:
Affinity Partnerships Bets Big on Danny Glover and Reverse Mortgage Education—For its first foray into the reverse mortgage sector, Affinity Partnerships, LLC, is banking on a network of industry lenders, a growing consumer knowledge gap, and the endorsement of a Hollywood celebrity and distinguished humanitarian to bring greater reverse mortgage education to American seniors.
Forbes: ‘Wise’ Reverse Mortgages Are Saving Grace for Retirees—Reverse mortgages have often been touted by members of the financial planning community as a “saving grace” for retirees unprepared to face the realities of retirement. But as a recent Forbes article indicates, the old reputation of Home Equity Conversion Mortgages continues to hamper the acceptance of this emerging concept of financial salvation.
HUD: Despite Challenges, HECM Program Fundamentally Sound—Although the Home Equity Conversion Mortgage (HECM) program has witnessed its share of challenges in recent years, it continues to prove itself as a fundamentally sound component of the Federal Housing Administration’s Mutual Mortgage Insurance Fund, according to one top-ranking official from the Department of Housing and Urban Development (HUD).
Kiplinger: Reverse Mortgages Help Close the Retirement Income Gap—Social Security is one of the most valuable assets that can produce a vital income stream for retirees later in life. But while deferring Social Security can yield higher funds at a later age, for some retirees looking to fill the gap between their working years and benefits access date, they might want to consider a reverse mortgage, according to a recent Kiplinger article.
FHA Gives Extra Guidance on Reverse Mortgage Assignments to HUD—Once again, the Federal Housing Administration issued additional guidance related to the Mortgagee Optional Election assignment for HECMs. Under Mortgagee Letter 2016-05, HUD states mortgagees may now request an extension of 30 days for the 120-day assignment requirement, provided the sole reason a mortgagee is unable to submit the assignment request within the 120-day requirement is due to the state’s statute of limitations.
Written by Jason Oliva