Reverse Mortgage Guide

Business Week asks if the mortgage meltdown has finally peaked and comes up with a strong maybe.

For reverse mortgage borrowers, the current problems in the financial markets are difficult to ignore. Those above age 62 tend to have more assets than younger folks so anything which causes stock prices to drop is typically unwelcome. As well, of course, the current real estate downturn in most markets means that homes are worth less and there the ability to get a bigger reverse mortgage is constrained.

It would be great if the mortgage meltdown had passed but there are two problems: First, we know that massive numbers of loan re-sets will carry well into 2008. Second, this is not a subprime crisis even though that subprime loans have seen the most losses. The problem is more general, it is in the way we originate loans and regulate lenders. Until these problems are resolved we will simply have more of the same.

This entry was posted on Wednesday, October 24th, 2007 at 5:46 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.