Getting a Reverse Mortgage was never so easy

Discussion in 'Press Releases' started by Mortgage Mentor, Mar 29, 2006.

  1. Mortgage Mentor

    Mortgage Mentor UKBF Newcomer Free Member

    4 0
    Reverse mortgage is a loan for senior citizens. It allows them to convert a part of their equity in their homes into tax free income without selling the house or transferring the title.

    In this type of mortgage instead of making a monthly payment to the lender, the lender pays you. And that is why it is called reverse mortgage.

    Steps involved in getting a reverse mortgage.

    1. Awareness – The first thing that a homeowner should do is, learn about the reverse mortgage by reading some articles on the net, talking to some experts etc.

    2. Counseling – You should have some counseling before you apply for the reverse mortgage. It is generally conducted face to face. The counselor will provide you with supplemental information on reverse mortgage which will help to decide whether you are eligible for reverse mortgage or not.

    3. Application/Disclosure – After counseling if you are eligible for reverse mortgage then you should fill out the form and select your payment options from fixed monthly payment, lump sum money, line of credit or a combination of these 3. After all this the lender will disclose the estimated total cost of the loan.

    4. Processing – after the application and disclosure the lender orders a appraisal, title work, lien payoffs etc. If the appraiser finds any physical defect in the property that requires repairs, then the homeowner must get it repaired after the reverse mortgage closes.

    5. Underwriting – After the lender receives all the appropriate information and data, the lender finalizes all the loan parameters and submits it to the underwriter for the final approval.

    6. Closing – If the loan package is approved by the underwriter then the closing date is fixed. Expected rates are calculated. All the papers required at the closing are prepared. Generally the closing costs are financed as a part of the loan.

    7. Disbursement – A homeowner has three days after the closing to cancel the loan. After this period ends the loan amount is disbursed through the selected option. If there are any debts on the property then it is paid off and the new lien is placed on the property. The borrower can use the loan proceeds for any purpose he wants.

    Reverse mortgage gives an opportunity to senior citizens to get a home even after retirement. But like any other mortgage program, one needs to be aware of all the basics and take some financial advice before applying for a reverse mortgage.
     
    Posted: Mar 29, 2006 By: Mortgage Mentor Member since: Mar 7, 2006
    #1
  2. DuaneJackson

    DuaneJackson UKBF Legend Free Member

    9,523 1,118
    We don't generally have 'senior citizens' in the UK. Is this stuff for the US market?
     
    Posted: Mar 29, 2006 By: DuaneJackson Member since: Jul 14, 2005
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  3. 10 Yetis

    10 Yetis UKBF Newcomer Free Member

    2,383 144
    mortgage mentor...

    A granny sucking eggs moment I am sure but...
    If the FSA somehow stumbled upon this then you would be fubar'd.

    This would be classed as a "financial promotion" and as such there is a whole raft of legal/compliance blurb that needs to go in the 'editors notes' section.

    Just trying to help, feel free to PM me for more info.

    Home reversion and general equity release info is quite high on the trade news agenda at the minute so I imagine you should at least get a News In Brief (NIB) mention if you pimped it around.
     
    Posted: Mar 29, 2006 By: 10 Yetis Member since: Nov 3, 2004
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  4. directmarketingadvice

    directmarketingadvice UKBF Legend Free Member

    10,942 3,530
    Andy

    As its written, it looks like "financial advice" to me and that would probably come under regulation.

    However, if he turns this into a story about how some people are "reverse mortgaging" and sticks in a couple of quotes from himself, would he still have to put the whole "your home could be at risk" stuff?

    After all, the papers have plenty of articles about finance, but don't come under regulation (even though some of them give what is, in reality, advice).

    Steve
     
    Posted: Mar 29, 2006 By: directmarketingadvice Member since: Aug 2, 2005
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  5. 10 Yetis

    10 Yetis UKBF Newcomer Free Member

    2,383 144
    Quite right re the papers, but they recieve the news in press release style complete with legal/compliance text at the bottom in the ed notes section.

    The journo then writes it up in a balanced way as they see fit (based on their knowledge and the info in the release) and hands it to the subs for checking and the subs have to flag up any legal risk as they see fit.

    As no-one does this on UKBF and we (members) are left to our own devices to add releases then the compliance element is bypassed and it is no different to an offline DM campaign.... where the compliance info has to be at the bottom.

    If you take a gander at a mag like Heat or Loaded etc you will no doubt get an Alliance and Pester ad falling out and they always have the compliance info at the bottom.

    Interestingly enough... (to you and I, everyone else is asleep by this point) a national PF editor I know was very close to being summoned and executed by the FSA because of this whole "Giving advice" malarkey. A few years ago he plugged Endowments as a good thing, and look what happened there.

    Luckily enough he was just given a "stern talking to" but this had led to a huge debate (see Press Gazette or visit any wine bar near Kensington High St) in the media with regards to the long term merits of "giving advice".

    A prime example of a change in attitude by the media is the rebranded version of the Guardian, as well as it now looking prettier one of the main changes was the fact it made a decision to no longer be seen as "giving advice" on anything, instead it would just lay the news facts out straight and let people make up their own mind...

    My god I ramble! Sorry.
     
    Posted: Mar 29, 2006 By: 10 Yetis Member since: Nov 3, 2004
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  6. directmarketingadvice

    directmarketingadvice UKBF Legend Free Member

    10,942 3,530
    Then surely every personal finance columnist in the country should have been hauled up for saying "equities will go up forever" for most of 1999?

    On the other hand ... practically every IFA in the country was giving the same advice at that time ...

    Interestingly (to you and me, no-one else is reading this) I know some former IFA's who became mortgage brokers because they were so tired of all the legislation for IFAs, and the mortgage industry is far simpler.

    Steve
     
    Posted: Mar 29, 2006 By: directmarketingadvice Member since: Aug 2, 2005
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  7. Mwebb

    Mwebb UKBF Newcomer Free Member

    963 9
    The FSA is a pain in the Ar*e

    Some of you may or may not know, in late 2004, the FSA made in law that all staff at car dealerships offering finance, insurance and warranties, had to be regulated by the FSA. ( IE all staff!)

    The complete sham of it was that the online tests you had to sit, assumably by yourself, monitored by someone from the dealership who had been FSA regulated as an "inspector" or some other title similar, ended up being taken by a team of people just to get you through.!! Amusing really!

    The motor trade hated the interferance of the FSA, as they had been "giving great advice" to customers for years, and there had never been any problems. Everyone loved there 32.9% APR finance deals!! ( I **** you not!)

    The funny thing is, the dealers still offer this rate, they now just can't turn round and say. " But sir it is a really good rate and offer: we reccommend you go ahead with it, as they only have ( sales staff not management) introducer status! Which means they cannot give advice.

    I wonder how many dealers are telling their staff now to tell customers: " We can't stitch you up sir, we are regulated by the FSA"

    God i miss the motor trade!


    Michael

    PS i read it guys! Found it quite interesting actually.
     
    Posted: Mar 29, 2006 By: Mwebb Member since: Jan 6, 2006
    #7
  8. 10 Yetis

    10 Yetis UKBF Newcomer Free Member

    2,383 144
     
    Posted: Mar 29, 2006 By: 10 Yetis Member since: Nov 3, 2004
    #8
  9. Mwebb

    Mwebb UKBF Newcomer Free Member

    963 9
    Andy,
    I am not sure. However they are not the only one. for legal reasons, and not wanting to give my website a bad name within the trade, i will not mention that there several companies that are just the same..

    Unfortunately, you can include many main dealers used car programs in that. If you are a "sub prime" customer, then sorry, you gonna get stuffed!!

    The new car deals are all discounted by the manufacturer, but the used car finance, depends on what commision deal the company has with the finance provider.

    The finance provider gives the dealer a base rate. Anything over that rate the dealer keeps as profit. If it is paid up early they get a debit back of commision. ( Also the same for default)
    Because of this make up dealers try to add a lot to the interest rate, to up their commision. They try not to mention APR's and just sell on monthly payments.

    Just some insight to the world of the car dealer!

    Anyone buying a car, PM me, i can save you money. Probably!

    Michael

    ps maybe i should write a report/expose' of used car finance....that would pisss some people off!
     
    Posted: Mar 29, 2006 By: Mwebb Member since: Jan 6, 2006
    #9
  10. Mwebb

    Mwebb UKBF Newcomer Free Member

    963 9
    Posted: Mar 29, 2006 By: Mwebb Member since: Jan 6, 2006
    #10
  11. 10 Yetis

    10 Yetis UKBF Newcomer Free Member

    2,383 144
    How very dare you :D I have never bought a car from Yes Car... just interested as I read the APR's were like up to 400% on some cases!
     
    Posted: Mar 29, 2006 By: 10 Yetis Member since: Nov 3, 2004
    #11
  12. Mwebb

    Mwebb UKBF Newcomer Free Member

    963 9
    They got a good deal at 400% it would appear in comparison to some deals they did.

    Most of it was they were telling customers that they ad to take payment protection, fruadulating credit checks, to tell people they were sub prime i believe.

    However i believe the parent company are still in business, and the article above says they are still owed £240m in finance payments.
    So ofcourse they are not going any where until they get that lot!!
     
    Posted: Mar 29, 2006 By: Mwebb Member since: Jan 6, 2006
    #12
  13. Reverse Mortgage

    Reverse Mortgage UKBF Newcomer Free Member

    1 0
    1. Awareness –

    2. Counseling –

    3. Application/Disclosure –

    4. Processing –

    5. Underwriting –

    6. Closing –

    7. Disbursement –

    This step by step information of How Does A Reverse Mortgage Work
    Can i increase the information of all steps on same thread.

    Waiting for your kind Reply
     
    Posted: Jul 6, 2009 By: Reverse Mortgage Member since: Jul 6, 2009
    #13