{"id":6036,"date":"2017-08-31T00:00:00","date_gmt":"2017-08-31T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/hud-to-make-reverse-mortgages-tougher\/"},"modified":"2017-08-31T00:00:00","modified_gmt":"2017-08-31T00:00:00","slug":"hud-to-make-reverse-mortgages-tougher","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/hud-to-make-reverse-mortgages-tougher\/","title":{"rendered":"HUD to Make Reverse Mortgages Tougher"},"content":{"rendered":"

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\"\"The Department of Housing<\/a> and Urban Development says it\u2019s planning to raise premiums and tighten loan limits for seniors who use reverse mortgages, announcing the changes this week in a letter to lenders<\/a>, The Wall Street Journal<\/em> reports.<\/p>\n\n

\u201cGiven the losses we\u2019re seeing in the [reverse mortgage<\/a>] program, we have a responsibility to make changes that balance our mission with our responsibility to protect taxpayers,\u201d said HUD Secretary Ben Carson.<\/p>\n\n

The changes would not impact borrowers who already have taken out a reverse mortgage but will apply to borrowers who take out new loans<\/a> going forward. Reverse mortgages allow seniors to take out a loan<\/a> against the value of their home. When a borrower moves or dies, the proceeds of the home\u2019s sale go toward repaying the loan.<\/p>\n\n

New borrowers to the program will pay 2 percent of the amount of the home\u2019s value upfront, and then 0.5 percent annually over the course of the loan. They also will face higher premiums upfront but will pay lower premiums over the life of the loan. Currently, borrowers pay 0.5 percent upfront and 1.25 percent annually over the remainder of the loan.<\/p>\n\n

The reverse mortgage program has proven costly to the government in recent years. Federal officials say the program is placing a heavy burden on the reverse fund, and within the next couple of years, the Federal Housing Administration would require money from Congress to keep it operating. The Journal<\/em> reports that the costs are hampering HUD\u2019s ability to lower premiums on forward mortgages.<\/p>\n\n

Advocates say reverse mortgages are a critical source of funds<\/a> for many seniors. \u201cBeing able to survive retirement when you don\u2019t necessarily have a large 401(k)\u2014that creates the real risk of just being able to pay the bills and eat food and stay in a home,\u201d David Stevens, president of the Mortgage Bankers Association, told the Journal<\/em>.<\/p>\n\n

Source: \u201cTrump Administration Plans New Restrictions on Reverse Mortgages,\u201d The Wall Street Journal (Aug. 29, 2017) [Log-in required.]<\/em><\/p>\n<\/div>\n \n \n<\/pre>\n\n<\/div>\n\n\n\n\n Realtors.org <\/a>\n<\/p>\n","protected":false},"excerpt":{"rendered":"

The Department of Housing and Urban Development says it\u2019s planning to raise premiums and tighten loan … HUD to Make Reverse Mortgages Tougher<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":6037,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[4751,12908,543,604,408,1032,312,41,818,479,842],"class_list":["post-6036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-amazing","tag-home","tag-home-buying-guide","tag-loans","tag-mortgage","tag-mortgage-bank","tag-mortgages","tag-property","tag-real","tag-realtor","tag-trump"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2017,"url":"https:\/\/amazingproperty.com.ng\/blog\/what-is-a-reverse-mortgage\/","url_meta":{"origin":6036,"position":0},"title":"What Is a Reverse Mortgage?","author":"Amazing Property","date":"March 18, 2017","format":false,"excerpt":"\u00a0 By American Advisors Group As you pull into your driveway and up to your garage, you take a good long look at your house.\u00a0 The fresh exterior paint you had applied about a year ago still glistens in the sun, and the roof shingles you had installed still sit\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/what-is-a-reverse-mortgage-final.jpg?fit=800%2C488&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/what-is-a-reverse-mortgage-final.jpg?fit=800%2C488&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/what-is-a-reverse-mortgage-final.jpg?fit=800%2C488&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/03\/what-is-a-reverse-mortgage-final.jpg?fit=800%2C488&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":625,"url":"https:\/\/amazingproperty.com.ng\/blog\/buy-a-home-with-no-monthly-payments\/","url_meta":{"origin":6036,"position":1},"title":"Buy a Home With No Monthly Payments?","author":"Amazing Property","date":"February 3, 2017","format":false,"excerpt":"Reverse mortgages for purchases have been around a while but they stand to see more use as younger baby boomers hit retirement age. The mortgages are backed by FHA and they let households buy a home without having to make monthly mortgage payments. Instead, buyers put up a fairly sizable\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3023,"url":"https:\/\/amazingproperty.com.ng\/blog\/understanding-adjustable-rate-mortgages\/","url_meta":{"origin":6036,"position":2},"title":"Understanding Adjustable Rate Mortgages","author":"Amazing Property","date":"April 5, 2017","format":false,"excerpt":"Question. We are shopping around for a mortgage for our first home and are confused about the many loans that seem to be available. Interest rates are low, real estate appears to be picking up again, and the adjustable rate mortgage is of interest to us. We do not understand\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/d6a3a02f587092a1a7e0a7f6242f226a_M.jpg?fit=300%2C200&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1479,"url":"https:\/\/amazingproperty.com.ng\/blog\/consumers-turn-to-non-banks-for-mortgages\/","url_meta":{"origin":6036,"position":3},"title":"Consumers Turn to Non-Banks for Mortgages","author":"Amazing Property","date":"March 1, 2017","format":false,"excerpt":"[ad_1] More borrowers are choosing non-banks\u2014financial institutions that only issue loans and do not offer savings or checking accounts\u2014to get a mortgage, The Washington Post reports. It's a major shift in borrower behavior. In 2011, 50 percent of all new mortgage loans originated from the three largest banks: JPMorgan, Bank\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2655,"url":"https:\/\/amazingproperty.com.ng\/blog\/freddie-to-aid-those-without-credit-scores\/","url_meta":{"origin":6036,"position":4},"title":"Freddie to Aid Those Without Credit Scores","author":"Amazing Property","date":"March 28, 2017","format":false,"excerpt":"Mortgage financing giant Freddie Mac has expanded access to credit for American families without credit scores. Beginning in June, borrowers without credit scores may be able to easily qualify for purchase mortgages or no-cash-out refinance transactions. 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