"The financial challenge of retirement is to make one's money last while paying health care costs that inevitably increase with age. It is becoming clear that to meet that challenge, many older Americans will need to cash in their home equity.

In a report last year, the National Council on Aging, a research and advocacy organization, made a compelling case for expanding the use of specialized loans known as reverse mortgages to help older people pay for the care they need to remain safely at home, even as they become frailer.

The idea is to free up money to improve the quality of daily life, while delaying or averting the need for a nursing home. And since that should also be the nation's overall goal when it comes to the well-being of the elderly, reverse mortgages have to be regarded as a kind of social policy. . .

Reverse mortgages are bound to become a social norm as the broad middle class of aging Americans begins to face a financial squeeze. The sooner there is debate, planning and action to link reverse mortgages to aging in place, the better the chances for an outcome that benefits the nation's elderly, and the nation at large."

For the complete editorial see www.nytimes.com

Reverse Mortgage Program May Get New Enhancements

House Bill Would Allow Seniors to Access Greater Equity Amount

The Reverse Mortgage Program, already popular with senior citizens, may get even better. The U.S. House of Representatives is considering legislation that would make substantial improvements to the federal reverse mortgage program, including a plan that would allow older homeowners to access greater amounts of equity from their homes, according to the National Reverse Mortgage Lenders Association.

The Expanding American Homeownership Act of 2006 (H.R. 5121) would:

 •  Create a single national loan limit for FHA Home Equity Conversion Mortgages (HECM). The HECM program accounts for 90 percent of all reverse mortgages made in the U.S. Currently, lending limits vary by county and range from $200,160 to $362,790. If the legislation passes, there would be one single limit equal to the conforming mortgage limit set by Freddie Mac, which is currently $417,000. Thus, seniors could convert greater amounts of equity from their homes into retirement income.

 •  Implement a HECM for Home Purchase option that would allow seniors to purchase newer housing that better suits their needs.

 •  Remove the existing cap on the number of HECM loans that FHA can insure. The last provision is also contained in H.R. 2892 and S. 1710, the Reverse Mortgage to Help Americas Seniors Act, which is still pending approval in the Senate after having passed the House of Representatives in December.

Information on Reverse Mortgage Program May Get New Enhancements is from the National Reverse Mortgage Lenders Association. NRMLA is a nonprofit trade association, based in Washington, DC, whose members make and service reverse mortgages throughout the U.S. and Canada. Members sign a Code of Conduct pledging to abide by guidelines that assure fair, ethical, and respectful practices in offering and making reverse mortgages to seniors.

For more information please call us toll free at 1-877-217-0166; bscoles@1strmusa.com
or visit our web at www.1streversemortgageusa.com 

 
About 1st Reverse Mortgage USA

1st Reverse Mortgage USA is a division of Mountain Pacific Mortgage Company (MPM). We are a Colorado Based HUD approved Mortgage Banker and Fannie Mae direct seller, and MPM owns the Colorado franchise of the USA Loan Network. Last year this network funded in excess of 30 billion dollars in residential mortgages.

Our reverse mortgage division, 1st Reverse Mortgage USA is among the top five originators of reverse mortgages in the Southwest region of the country, and among the top 5% in the nation. We have been the featured speaker at numerous consumer and trade events throughout the country, and in 2004 and 2005 we were Colorados organizer and host for National Age In Place Week.

1st Reverse Mortgage USA is a featured reverse mortgage lender on the consumer advocate web site of the Tom Martino Troubleshooter Network, and in 2003, 2004, and 2005 MPM received the Colorado Better Business Bureaus highest honor the Gold Star Award of Excellence.

Throughout a 10 state region we have organized a Network of more than 70 1st Reverse Mortgage USA branch offices, Banks, Credit Unions, and qualified mortgage brokers into the 1st Reverse Mortgage USA Lender Network. Over the years in our country we have come to expect a certain standard of excellence when a company has received recognition by such organizations as the BBB or the Good Housekeeping Seal of Approval. When you are working with a member of the 1st Reverse Mortgage USA Lender Network you can take peace of mind in knowing they have met certain standards or excellence, and are backed by some of the leading experts in their field.

We are currently serving the needs of seniors in the following states: Colorado, Wyoming, Nebraska, Kansas, Missouri, Minnesota, Oklahoma, Arizona, Washington, and Oregon. To locate a member of the 1st Reverse Mortgage USA Lender Network in your area please call us toll free at 1-877-217-0166.
www.1streversemortgageusa.com