It’s understandable considering Bank of America is the second largest bank in the U.S. More than eight years after Bank of America exited the reverse mortgage industry, people still ask if they do reverse mortgages. Since that time, non-banking reverse mortgage lenders have become the industry leaders. Different lenders took the place of the big banks. While the exit of the three big banks was a surprise to the industry, reverse mortgage lenders continued to meet the demands of the industry. Bank of America decided to re-assign half of its reverse mortgage staff to its loan modification division. 4 With lower home values, fewer people were eligible for loans. 5 Bank of America cited declining home values as the reason for leaving the industry. ![]() 4 MetLife Bank followed suit not long after in 2012. 4 At that time, both banks accounted for 43 percent of the business according to Reverse Mortgage Insight. In 2011 both Bank of America and Wells Fargo exited the reverse mortgage sector. Genworth Financial Home Equity Access, Inc.īy 2010 the mortgage crisis of 2008 was impacting the reverse mortgage industry. 3 Not long after, Bank of Americaīecame the second largest reverse mortgage lender behind Wells Fargo. 2 In 2008, Bank of America acquired Countrywide Financial Corporation which included its reverse mortgage division. 1 Unlike Wells Fargo, Bank of America was not a big player in the market until 2007 when the company purchased Seattle Mortgage’s reverse mortgage division for $220 million, Reverse Mortgage of America. By 20, Wells Fargo, Bank of America, and MetLife Bank were the top three reverse mortgage lenders. That thinking applies to reverse mortgages as well. The only way you’ll know for sure is to do your due diligence.When people think of getting for a loan, they often start with the big banks. The HECM program may not be right for you, or it may be just right for your situation. Our advice to you is simple: if you’re interested in a reverse mortgage loan, do your research and compare your options. However, your counselor will go over this with you. MYTH 4: This will affect your taxes and social security in a negative way.įACT: The earnings you obtain from your reverse mortgage will generally not become an issue with Social Security benefits or income tax. You are also required to undergo counseling before taking out a reverse mortgage, and this session will help you understand your options and how the fees compare. ![]() The fees are generally higher, but this is a unique loan that offers benefits that others do not. MYTH 3: The fees associated with closing are much higher than they are for other loans.įACT: This is more like a “half” myth, in that it doesn’t provide context. There is also a financial assessment to make sure that you can pay for taxes and insurance. You have simply taken a loan.įACT: Though there are other qualifications, for the most part you only need to be 62 years of age or older and have substantial equity in your home. MYTH 1: The reverse mortgage lender owns your home.įACT: You will continue to be the home’s owner and to hold its deed. Here are four commonly repeated myths, along with the facts, to help you further understand Maine reverse mortgages: Next, you will find detailed statistics on HECM originations, locations and hours for local HUD offices, and much more: First, we’ll do our best to address a few common misconceptions about the loan. ![]() This page contains useful information for Maine seniors considering a reverse mortgage. Want to learn more? Click here to get free information about a reverse mortgage in ME! You need to be educated on the program so that you can make the best decision for your personal situation. That said, there is a lot of confusion about reverse mortgages. Many eligible homeowners in Maine are interested in learning more about this unique financial product. The debt that you or your estate owes can never be more than the value of your home. Although the government does not lend you the money, your reverse mortgage is guaranteed by the Federal Housing Administration (FHA), and you may remain living in the home. If you have an existing loan, it must be paid off using the proceeds, so you will eliminate your monthly mortgage obligation. You can get any combination of these things as well. Basically, this is a loan that will allow you to use your home equity to have a monthly income coming in, or a large lump sum at once, or a credit line. The Home Equity Conversion Mortgage, or HECM, was launched in 1987.
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