Disqus - Latest Comments for treverse

Re: US amazon-prime-instant-video

treverse — Fri, 17 Jun 2022 23:15:13 -0000

Same here. It happens all the time. Amazon SUCKS!!!

Re: How Amazon plans to commemorate Juneteenth, the oldest-known emancipation celebration

treverse — Wed, 17 Jun 2020 13:25:55 -0000

Amazon CEO Jeff Bezos is encouraging employees to cancel meetings and “take some time to reflect, learn and support each other” on Juneteenth.
Just another white liberal phony jumping on the bandwagon. How about putting your money where your mouth is Jeff?
" Amazon’s 110 top executives, senior officials and managers, only one is black "
Just Google it!

Re: HECM Originators Feel Impact of Rising Rates

treverse — Thu, 25 Oct 2018 08:11:07 -0000

This article focuses on how the rising rates are affecting the principle limits. If you are really being upfront with the borrower you need to explain how rising rates are going to affect their equity going forward. As rates rise and loans are adjusted monthly or annually the equity in their home is also going to be eaten up a lot quicker.

Re: TransUnion: Home Equity Borrowing Poised to Skyrocket

treverse — Thu, 18 Oct 2018 10:42:32 -0000

I have been hearing this tune for a long time and with all the changes to the program endorsements have been steadily decreasing.

Re: What the New Appraisal Rules Mean for the Reverse Mortgage Industry

treverse — Wed, 03 Oct 2018 08:17:16 -0000

“By December 1 at the latest, FHA hopes to have the process fully automated.“ Why do we just get blindsided by FHA? Why not get this system in place and implement this on December 1st?

Re: FHA’s Montgomery: New HECM Appraisal Rules Less Impactful Than Other Changes

treverse — Tue, 02 Oct 2018 09:37:23 -0000

That does seem odd since as you say those years were at the height of the bubble. Haven’t most markets recovered since then and aren’t the homes worth more now than they were appraised at in 2008-10? Maybe the problem was that the PLF’s were too high at that time. We can’t go back in time and fix the problems of the past. This is what is causing today’s shortage in the MI fund. The current PLF’s and increased MIP can’t be evaluated until the future.
It seems that FHA is trying to correct past mistakes by making quick changes without input from the industry. You know second appraisals are not going to fix anything in the near term. What’s next?

The future is definitely in proprietary products!

Re: Originators See Rate, Margin Variation as Reverse Mortgage Changes Shake Out

treverse — Tue, 31 Jul 2018 08:58:21 -0000

Since October 2nd we are getting hit on all sides. Looking back at rate sheets on October 2nd the 1 year Libor was 1.782% and the Swap Rate was 2.240%.
As of today we have the 1 year Libor at 2.821% and the Swap at 3.010% and rising weekly!

Re: Researchers Warn ‘Baby Boomer Sell-Off’ Could Flood Certain Housing Markets

treverse — Fri, 20 Jul 2018 17:56:24 -0000

When reading this article the first thing that came to mind was this sounds like an attempt to scare aging homeowners to put their homes on the market before it gets flooded and prices drop. When looking at the research paper I saw it was sponsored by EYA who is a real estate developer in DC. ??

Re: NY Times: Five Year Retirement Plan Should Consider Reverse Mortgage

treverse — Tue, 10 Jul 2018 10:51:39 -0000

How about locking in a reverse mortgage when you are 62. Let the LOC grow and have that safety net in place if and when you need it. Why wait until the 5 year mark and then panic. It is always better to be proactive and not reactive. Besides, you don't know what this product will look like 5 years out.

Re: Reverse Mortgage Lenders Have ‘Long Winter’ of Declines Ahead

treverse — Mon, 16 Apr 2018 08:44:21 -0000

This doesn't tell the whole story. Lower PLF's coupled with the higher upfront MIP and rising interest rates which cut further into the PLF (unless margins are lowered) all add up to much lower volume. Time will tell but it doesn't look promising.

Re: Reverse Mortgages Issued Under New Rules Outstrip Old, Age Gap Narrows

treverse — Fri, 13 Apr 2018 10:56:37 -0000

I am surprised no one is talking about the rising rates. On January 1, 2018 the 1 year libor rate was 2.101% compared to this weeks rate of 2.663%. Over a half point rise in a little over 4 months. The swap rate was 2.440% and is now 2.830%.
This is also cutting into the principal limit factors and margins need to stay lower for this product to be viable.

Re: Three Years In, Underwriters Say LESA Has Improved Reverse Mortgages

treverse — Fri, 06 Apr 2018 18:52:28 -0000

What a ridiculous statement "...some are even promoting it, marketing LESAs as a bonus feature that borrowers can choose in order to eliminate the burden of having to pay their taxes and insurance each month."

So if taxes and HOI are $10,000 a year let the bank pay them so in 10 years I can have $100,000 compounding interest so I won't have the burden of writing out a check.

Do the people who write this stuff ever think it through and look at the consequences of what they are saying? No wonder Reverse mortgages still have a negative reputation with many.

Re: Three Years In, Underwriters Say LESA Has Improved Reverse Mortgages

treverse — Fri, 06 Apr 2018 09:40:18 -0000

Unfortunately this was not enough for HUD. They had to act impulsively and basically ruin the product on October 2nd, 2017.

Re: Reverse Mortgages Became ‘Harder Sell’ After October 2

treverse — Fri, 23 Mar 2018 12:44:06 -0000

James- Well said! As an advisor who spent a lot of time cultivating Financial Planners over the last 2 years about the option of using the HECM as a standby LOC the new rules basically took that option off the table. Not too many are willing to pay 20K or more to open a LOC especially with lower PLF's and lower growth rates.

Regarding John's statement about the previous 2.5% upfront costs for clients paying off mortgages, it never really presented a problem. Since they were paying off mortgages I was able to get closing costs greatly reduced so it is basically a non issue.

A lot of time was spent by many over the past few years trying to educate financial professionals that a RM is not just a need based product. Unfortunately that strategy is no longer viable.

Re: Reverse Mortgages Became ‘Harder Sell’ After October 2

treverse — Wed, 21 Mar 2018 10:50:24 -0000

"For a reasonably affluent client that has a $300,000 or $500,000 house, that’s $6,000 to $10,000 of upfront costs just in case you might ever need the line of credit,”
I wish that were the case. I think they meant to say additional costs. The above numbers just represent the increase in the MIP. Actual costs on a $500,000 home are over $20,000. That is a hard sell for opening a standby LOC.

Re: Yale Study Probes Reverse Mortgage Motivations, Racial Disparities

treverse — Thu, 15 Mar 2018 12:45:21 -0000

So at 62 the LTV is 40% with closing costs over $20,000 on a $500,000 home. Doesn't sound to enticing to most people.

Re: Yale Study Probes Reverse Mortgage Motivations, Racial Disparities

treverse — Thu, 15 Mar 2018 09:48:56 -0000

"she considered it only a last resort,” We are back to the loan of last resort if they qualify. I am curious when the people interviewed took out their Reverse Mortgages? I am sure it was before 10/2 but how many were before the FA? Another story that doesn't tell you much without all the facts.
I have put in a lot of work with FP's over the last few years talking about the LOC option with the growth rate as a safety net in retirement. Looks like this strategy is out the window with the outrageous closing costs and lower PLF's.

Re: HUD Responds to Reverse Mortgage Non-Borrowing Spouse Statistics

treverse — Wed, 14 Mar 2018 10:15:44 -0000

Typical attack by the non profit liberals against the big bad banks without the facts.
Unfortunately damage has already been done by the fake news!

Re: How the ‘New’ Reverse Mortgage Stacks Up Against HELOCs

treverse — Mon, 12 Mar 2018 10:01:17 -0000

I agree with most of the above statements. Jim Cory's statement of $15,000 in closing costs may apply to his area but in NY with home values of $500,000 plus closing costs are 20 to 25K. That is a very hard sell to open a LOC.

Re: Dodd, Frank, Waters Say the Fight for the CFPB Isn’t Over

treverse — Fri, 01 Dec 2017 09:44:24 -0000

This statement sums it up. Much has been made of the meaning of the “absence or unavailability” phrase, but Dodd, Frank, and CFPB legal architect Michael Barr insisted the language was meant to apply to the change of power — thus making English the rightful heir to the throne.

As attorney's they should know the difference between what something actually says and what it is meant to say are two different things. They should have thought more carefully about the language when they were busy ramming this down our throats and into law.

As far as making English the rightful air to the throne I believe we are a democracy and their are no heirs to the throne!

Re: CFPB Issues Warning on Using Reverse Mortgages to Delay Social Security

treverse — Fri, 25 Aug 2017 10:19:20 -0000

There are so many different strategies so I decided to use real numbers from my own situation. I am 66 and just started collecting $2,214.00 monthly SS.

If I delayed until age 70 I would receive $2,972.00 which is $848.00 more monthly.

I ran an amortization schedule taking $2,124.00 monthly for the four years from a RM. (to replace/delay the SS) At the end of 4 years after closing costs and interest I would have a loan balance with the RM of $129,520.00. If I didn't take any further money from the RM after 10 years ( age 76) my loan balance would be 182,469.00 (assuming interest rates did not rise)

Do the math. Over a 10 year period it would cost me $80,517.00 in interest, mip and closing costs. I would have received 868.00 X 72 = $60,056.00 more from SS between ages 70-76. It would cost me almost $20,000.00 more to do the RM.

The conclusion is for me that this is a terrible strategy. It would never pay off with compounding interest. It gets worse at age 90. This is all based on an adjustable rate not rising.

I am no fan of the CFPB but I have to agree they are right on this one!

Re: Answer to LIBOR Question Written in Reverse Mortgage Notes

treverse — Tue, 08 Aug 2017 13:21:06 -0000

I meant to add: Should we be telling our potential customers today that the rate we are basing your loan on is going away in 3 years?

Re: Answer to LIBOR Question Written in Reverse Mortgage Notes

treverse — Tue, 08 Aug 2017 13:18:29 -0000

Unfortunately I don't think many seniors read that clause. If a new index is used and the interest rates go higher than the Libor at the time it can certainly give the appearance of a bait and switch in the seniors mind. We certainly don't need anymore negative press but we will have to wait and see.

Re: Ocwen to Shell Out $56 Million in Class-Action Settlement

treverse — Fri, 21 Jul 2017 11:53:54 -0000

Liberty management can't just break away from the parent company Ocwen. The management if interested would have to have the financing in place and make an offer. I don't see this happening.
If Ocwen really needed the cash Liberty would be put up for sale.

Re: RMF Uses “Unconventional” Message to Reach New Audience

treverse — Thu, 16 Feb 2017 13:31:32 -0000

I have always touted this message with my clients so I am glad to see a company finally thinking out of the box as far as advertising. Everyone does the same old RM commercial.
I understand this is a 2 minute commercial and this is not mentioned but I focus on two other great features when meeting with my clients.
1- the credit line growth factor which is not available with any other product.
2- Also, many people who are retired and don't have the income do not qualify for a HELOC.
The only negative I come across are of course the closing costs.