June 12, 2006


  • TEST TEST According to a 2005 Report from the National Council of the Aging, senior citizens have over $2 trillion of housing wealth. Over four-fifths of seniors own their home and 74 percent have no house debt. Since much of this housing “wealth” is illiquid, however, it is not readily available for senior citizens who require cash to meet short term needs. If a reverse mortgage solution is structured properly, helping senior citizen meet their cash flow needs can represent a significant opportunity for credit unions. Reverse mortgages are quietly making their presence known in the mortgage industry, and many credit unions have yet to capitalize on the opportunity. The Federal Housing Authority (FHA) has endorsed 39,674 reverse mortgage loans through the first seven months of the 2006 federal fiscal year ending September 30 in the Home Equity Conversion Mortgage (HECM) program. These loans account for 90 percent of the reverse mortgage volume. If the current pace is maintained, 2006 will be another record year for reverse mortgages, as they will have grown 774 percent in just a five year period (see graph).
    Scott T - TEST
  • This mortgage product is by far one of the most important financial tools a senior and their family needs to know about. As a mortgage loan consultant, I have reviewed numerous cases both inside and outside of the Crdeit Union realm; it pains me after reviewing circumstances about the senior homeowner, that a reverse mortgage is not possible due to any number of unforseen events Had they only known about this product and taken the time to research it ahead of time, they would embrace it in a flash! A very important topic that needs all of our attention and focus to our credit unions and their members.
    Dana Korosi