Up-to-date Information on an Important Emerging Trend: Reverse Mortgage

[Community Development Banking List]

Original message from: hboerner@accountability-central.com

With the economy slowing, consumer prices rising and those on fixed incomes
being most impacted - reverse mortgages are getting a great deal of
attention. Here is link that provides basic information, news articles,
views on the subject both pro and con, and links to other sites. Here is
their intro and link:

The expression, "house-poor" has become much more prevalent in recent years
as long-time homeowners find themselves owning a home worth hundreds of
thousands of dollars, coupled with a very limited income. To address this
situation, the 'reverse mortgage' concept has become increasingly popular in
recent years. This new subsection of the CIN is designed to explain reverse
mortgages, including their advantages and disadvantages.

Now on The Community Investment Network -- Link:
<http://www.communityinvestmentnetwork.org/financial-literacy-asset-building ('http://www.communityinvestmentnetwork.org/financial-literacy-asset-building')
/about-reverse-mortgages/>
http://www.communityinvestmentnetwork.org/financial-literacy-asset-building/ ('http://www.communityinvestmentnetwork.org/financial-literacy-asset-building/')
about-reverse-mortgages/


.
Governance & Accountability Institute, Inc.
Research - Print & Web Publishing - Advisory Services for Leaders

Hank Boerner
Tel 516.248.2383 x19
Email hboerner@accountability-central.com
Web www.ga-institute.com <http://www.ga-institute.com/> ('http://www.ga-institute.com/>')

Visit our Web sites:
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[Community Development Banking List]

Original message from: dana_ward_mainestreamfinance@msn.com



Thank you Hank for passing on such important information regarding reverse mortgages. They aren't for every homeowner 62 or over, but they have certainly been financial salvation for some. I proposed that my company, a non profit Community Development Financial Institution, become a reverse mortgage lender over a year ago. I was a Credit Counselor and Branch Manager of a Consumer Credit Counseling agency back in the mid 90's before becoming a Loan Officer at a local bank. In that position I did HECM (reverse mortgage) counseling and at that time I learned how important reverse mortgages can be to some senior citizens. Although as a lender I can no longer do reverse mortgage counseling, as it would be a conflict of interest, I know the importance of people going to a third party HUD certified counseling agency so that they can look at all options available, and weigh the pros and cons of each option before deciding for or against applying for a reverse mortgage.

We are a small three person CDFI and I wear a number of hats so I cannot dedicate all of my time to reverse mortgages; but so far I have had over 40 inquiries and have closed seven of them, with two more in process presently. I grew my portfolio of consumer loans to over 70 million dollars in my Loan Officer position at a local bank, but nothing can compare to the satisfaction I have received from helping senior citizens become financially free.

When I proposed that we become a reverse mortgage lender, I had no idea that we would be the first non profit lender in the country to offer HUD insured reverse mortgages About 92% of all reverse mortgages on the books today are HUD insured. Although there are some non profits, state and local governmental agencies that offer their own proprietary reverse mortgages, they tend to be limited in nature and are not HUD insured. Although we are the first non profit lender in the country to offer them, I do not relay that to people to "pat ourselves on the backs', but rather I am thankful that my company bought into my vision and have allowed me to offer such an important product to our senior citizens.

Dana E. Ward
Loan Officer
MaineStream Finance
262 Harlow Street
P.O. Box 1162 Bangor, ME 04402-1162
Tel: (207) 973-3555
Fax: (207) 973-3669

This communication contains information that may be confidential, proprietary in nature, and may also be attorney-client privileged. It is for the exclusive use of the intended recipient(s). If you are not the intended recipient(s) or the person responsible for delivering it to the intended recipient(s), please note that any dissemination, distribution, or copying this communication is strictly prohibited and may be unlawful. If you have received this communication in error, please immediately notify the sender and delete the original communication. Thank you for your cooperation.


Date: Thu, 19 Jun 2008 15:51:08 -0400From: hboerner@accountability-central.comSubject: Up-to-date Information on an Important Emerging Trend: Reverse MortgageTo: communitydevelopmentbanking-l@cornell.edu


With the economy slowing, consumer prices rising and those on fixed incomes being most impacted – reverse mortgages are getting a great deal of attention. Here is link that provides basic information, news articles, views on the subject both pro and con, and links to other sites. Here is their intro and link:

The expression, "house-poor" has become much more prevalent in recent years as long-time homeowners find themselves owning a home worth hundreds of thousands of dollars, coupled with a very limited income. To address this situation, the ‘reverse mortgage’ concept has become increasingly popular in recent years. This new subsection of the CIN is designed to explain reverse mortgages, including their advantages and disadvantages.

Now on The Community Investment Network -- Link: http://www.communityinvestmentnetwork.org/financial-literacy-asset-building/about-reverse-mortgages/ ('http://www.communityinvestmentnetwork.org/financial-literacy-asset-building/about-reverse-mortgages/')


.
Governance & Accountability Institute, Inc.
Research - Print & Web Publishing - Advisory Services for Leaders

Hank BoernerTel 516.248.2383 x19
Email hboerner@accountability-central.com
Web www.ga-institute.com


Visit our Web sites:www.accountability-central.comResource for news, updates, research, commentary and opinion, profiles, networking. Focus on accountability, and its important elements: corporate, institutional & public sector governance; ethics; social investment; corporate social responsibility; transparency; globalization; business & society. www.communityinvestmentnetwork.orgClearinghouse for news, information, commentary, reports, profiles of players, links to reliable sources. Focus on building and maintaining healthy economies and communities – affordability and access to housing; creating jobs; banking services; banks-community relationships; regulatory affairs; legislation; rural affairs.

__________________________________________________ _______________
The i’m Talkathon starts 6/24/08.* For now, give amongst yourselves.
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[Community Development Banking List]

Original message from: hboerner@accountability-central.com

Re: Reverse Mortgages

Thank you, Dana for sharing your valuable experiences. Yes, reverse
mortgages are not for everyone - but as you point out they can be helpful to
some borrowers. We are trying to present a wide spectrum of views on reverse
mortgages on The Community Investment Network...the "good," the bad and the
in-between. This product may well be the next flavor-of-the-year for
financial services providers (banks, mortgage brokers, insurance companies
and others), so the more information that community leaders have the better
prepared they are to serve their constituents.

The huge Baby Boom demographic cohort is the key here - 76 million born,
1946 - 1964, which means 4+ million per year will turn age 62 from 2008
through 2026. The "Silent generation" cohort born in prior years hit a low
of 2.7 million or so in the Great Depression (eg 1935), so the Boomers'
cohort is almost two times larger and over a sustained period of time. 4
million new customers a year (for new or re positioned or revived or newly
promoted financial products) - who could ignore that development? Our
projection is this could become a hot new product offering for lenders.

We'd like to hear from social or public sector organizations that are
offering reverse mortgages and their experience or advice. And we invite
all views for presentation on the CIN - please share your views / experience
/ warnings (and) accolades on this list serv and if you would like to have
your comments published as opinion in our new special focus section we will
do that - send to to me at: hboerner@ga-institute.com. Thanks again for your
sharing, Dana.

Hank Boerner

.
Governance & Accountability Institute, Inc.
Research - Print & Web Publishing - Advisory Services for Leaders
Hank Boerner
Tel 516.248.2383 x19
Email hboerner@accountability-central.com
Web <outbind://47/www.ga-institute.com> www.ga-institute.com

Visit our Web sites:
<outbind://47/www.accountability-central.com>
www.accountability-central.com
Resource for news, updates, research, commentary and opinion, profiles,
networking. Focus on accountability, and its important elements: corporate,
institutional & public sector governance; ethics; social investment;
corporate social responsibility; transparency; globalization; business &
society.

<http://www.communityinvestmentnetwork.org> ('http://www.communityinvestmentnetwork.org>')
www.communityinvestmentnetwork.org
Clearinghouse for news, information, commentary, reports, profiles of
players, links to reliable sources. Focus on building and maintaining
healthy economies and communities - affordability and access to housing;
creating jobs; banking services; banks-community relationships; regulatory
affairs; legislation; rural affairs.

[Community Development Banking List]

Original message from: Bill@RunontheBank.net