The PATH (Act) to Hell is Paved With Good Intentions... It's not uncommon for a piece of legislation, which hopes to fix one problem, can create another. The Protecting American Taxpayers and Homeowners Act is just one of the most recent, especially where reverse mortgages are concerned. The PATH Act, introduced by the House Financial Services Committee on July 18, seeks to: Phase out Fannie Mae and Freddie Mac by the next five years and end their $200 billion taxpayer-funded bailout Increase competition by ending the dominion of the Federal Housing Administration  in the housing finance market Give consumers more mortgage program choices better suited to their needs While this is all good, the last piece of legislation is the most troubling for me: Repeal the FHA's Home Equity Conversi... 07/27/2013

If You Keep Your Website Simple...They Will Come Your business website is the most important tool you have in your online arsenal. If you think so, it's important to consider what is user-friendly, and what is not, when creating your website. As important as your blog is, if potential clients can't navigate your website, they will leave. It's just that simple. In order to create a user-friendly website: Write a clear description of who you are. It should be the first thing clients see, preferably on the first page. They should be able to read up on you from the beginning. That's why they are there! They want to get to know a little more about you before calling or sending an email, make it easy for them. If the path to you is filled with thorns, they will back out before getting hurt. M... 07/26/2013

"Brokers Beat Banks on Tough Loans..." States Rick Bettencourt, government affairs official for the National Association of Mortgage Professionals Being a broker is tough, especially because of the misconceptions associated with the term 'broker.' In an article, published by Mortgage Professional America, Bettencourt discusses the necessity of brokers, especially in the current financial climate. In a previous blog, I talked about the difference between Broker v. Banker and the truth is, the debate is still raging on.  Bettencourt states: "There are a diverse set of investors and guidelines that brokers have access to that bankers do not."  And he couldn't have hit the nail more square on the head. WHY? One unsung benefit of the mortgage broker is their ability to take on complex, imper... 07/24/2013

Are You Talking to Me? The Power of Testimonials on Potential Clients We live in the digital, technological age but one of the most powerful marketing strategies out there is still word of mouth. How many times have you done something because someone else said something positive about it? And vice versa, how many time have you not done something because someone else said something negative about it? That's why testimonials still continue to play a vital part in our business. I previously discussed user-friendly website tips and one of them was testimonials because nothing calms down that nagging voice in the back of your mind like seeing other people talk about their success story.  You are not longer promoting yourself and your product, other people are doing it for you. They agreed to... 07/22/2013

Tips for Swimming Pool Safety Now that summer's here, it's time to hit the pool. Whether it's your own, a friends, or the public swimming pool, here is a few tips for swimming safely in any swimming pool: Never leave children unattended in the pool and always watch your child if they're near or in the pool. Children are curious so it's crucial that your eyes are always on them in order to keep your pool outing a fun experience. Teach your child how to swim. Even if they fall in by mistake they'll be able to pick themselves back up again. Not knowing how to swim can potentially ruin how far they go out into the pool. Make sure they know how to swim so they are limited. Teach yourself how to swim. In case you don't know yet, it's important to that you know how to swim too. Don't limit you... 07/17/2013

Knowing Your Finances Isn't Important Anymore, or Is It? Things aren't going to get better if more Americans don't start learning about financial literacy. Why? Because Americans continue to be unprepared for credit cards, debt, credit scores, expenses, mortgages, etc. If the most basic level of financial literacy isn't taught, then how are we, as a society, supposed to get better? A study, published by The Washington Post, explaining why most states don't score well on financial literacy, only 7 states scored an A, 13 scored Bs, 8 scored Cs while 11 scored a D and another 11 scored an F. Is 22 more than 28? No, but it's close and it's shocking.  The study also states that more parents are comfortable talking to their children about sex than about money. I just don't understand. As a pa... 07/17/2013

Time to Tighten the Belt... Even as potential changes to the reverse mortgage program push forward, the Federal Housing Administration plans to continue to offer all its current reverse mortgage programs to future consumers. Current products consist of the Reverse Mortgage Standard and Saver programs, after the Fixed-Rate Standard Reverse Mortgage was eliminated starting July 1 of this year. If Congress fails to be compliant, however, starting October 1 of this year, another reverse mortgage program product might get eliminated as well, potentially affecting the cash flow available to senior homeowners by 10 to 15%.  In an article that appeared in Reverse Mortgage Daily that signal the FHA's intention to keep all current reverse mortgage products, future borrowers might be facing harshe... 07/17/2013

The Wild, Wild West of Retirement Planning WSJ says: "Using your nest to help with your nest egg..." What used to be viewed as the "Wild Wild West" of retirement planning (reverse mortgages) has become a more cost-effective option for senior homeowners looking to supplement a comfortable retirement and take advantage of the equity their home has acquired throughout their lifetime. In an article, published by The Wall Street Journal, entitled "Advisers Reverse Thinking on Reverse Mortgages," author Tom Lauricella describes how the reverse mortgage program went from being the red-headed stepchild of the mortgage broker to a possible retirement planning technique for seniors.  In truth, the most ample financial asset homeowners have at their disposal is their home. However, because their m... 07/16/2013

Does Less Fees, mean Less Money? (The Benefits of the HECM Saver) Reverse Mortgages are a possible tool for senior who wish to live comfortably during retirement. Unless it has been used as a last resort, however, senior homeowners have been largely skeptical of the reverse mortgage, choosing to exclude it in their retirement plans because of the high costs associated with it.  In 2010, the “Standby” Reverse Mortgage was introduced as a cost effective alternative to seniors hoping to obtain a reverse mortgage. The benefits of a HECM Saver include: Lower Up-Front Costs. Firstly, amount of equity that can be borrowed with a “Standby” Reverse Mortgage is about 10-18% less than with a Standard Reverse Mortgage. As an added benefit, the up-front fees on the Mortgage Insurance Premium--which ... 07/16/2013

Value Limits for Reverse Mortgages May Drop to Previous Levels... Last December, The Department of Housing and Urban Development extended the $625,500 maximum appraised value limit on Home Equity Conversion Mortgage (HECM), or the Reverse Mortgage, effective until December 31, 2013. This represents an 150% increase over the statutory loan limit of 417,000. Under this new extension, (which began in 2009 under the American Recovery and Reinvestment Act and has been extended for the past three years in hopes of continuing a steady economic growth) senior homeowners living in higher priced homes--above $417,000--receive significantly more money than before. Good news for senior homeowners hoping to apply for a reverse mortgage! The following example sums up the situation: A borrower with a ... 07/11/2013

Reverse Mortgages and the Non-Borrowing Spouse If you are married, the best way to approach applying for a reverse mortgage is for both spouses to be on the title of the house and both apply jointly for the reverse mortgage.  This is not always possible, so there are details to consider, especially if the borrowing spouse passes away before the non-borrowing spouse can reach the age of 62 and, therefore, qualify for the reverse mortgage. Can the non-borrowing spouse pay off the loan if the borrowing spouse passes away?  This is important because, if and when the loan is due, the borrowing spouses will have to sell the home in order to pay off the lender. If the home upside down (mortgage is higher than value), the non-borrowing spouse might be left with no money and no home after paying... 07/11/2013

Reverse Mortgages With Non-Borrowing Spouses Are Still Possible The fastest way to apply for a reverse mortgage is with both senior homeowners to qualify and be on title of the house. However, there are still ways to qualify for a reverse mortgage even when one spouse doesn't qualify as a borrower for a reverse mortgage. PS Financial Services follows new guidelines as a safeguard for senior households with both a borrowing and non-borrowing spouse, ensures senior homeowners are aware of the rules and regulations when applying for a reverse mortgage. Very few companies still offer Reverse Mortgages for borrowers with Non-Borrowing Spouses (NBS). At PS Financial Services, a reverse mortgage company in Florida, we DO offer NBS Reverse Mortgages.  As a modification to the non-borrowing spou... 07/11/2013

Looking for the Truth in All the Right (And Wrong) Places Despite the recent "housing boom," Florida continues to be ahead of the curve when it comes to foreclosures. Does this necessarily signal a downturn in Florida's economy? Not really. One reason that might account for the higher foreclosure rates can be that they take longer in Florida can anywhere else in the United States. In an article published in The Miami Herald, which talked about Florida foreclosures, author Martha Brannigan states: "One reason Florida’s foreclosure inventory is so high (the national average in May was 2.6 percent) is its foreclosure cases take so long. Florida handles its foreclosure cases in the courts, typically resulting in a more protracted process than the administrative proceedings used in some othe... 07/11/2013

Reverse Mortgage Counseling Becomes More Affordable In order to protect senior homeowners when considering a reverse mortgage FHA requires them to complete a counseling. The Department of Housing and Urban Development approved an allocation of $40 million for reverse mortgage counseling in June with the hope of helping homeowners better understand the rules and regulations of a reverse mortgage. The good news is that National Council on Aging announced on Monday that it had lowered the fees on reverse mortgage counseling from $125 to $90 and offers waivers for older adults facing financial problems such as bankruptcy or with an income less than $1,000 dollars a month. Until now, Florida-based debthelper.com has been the only low cost option at $89. What does this mean more reverse mortg... 07/11/2013

The Benefits of a Reverse Mortgage During Retirement Despite the amount of proposed changes that may affect your ability to apply for a reverse mortgages in the future, all hope is not lost, especially for seniors hoping to avoid impoverishment during retirement. The number of seniors that could potentially benefit from a reverse mortgage continues to grow, in part, because of the many options available for senior homeowners who decide a reverse mortgage is the RIGHT decision for them.  In an article by The Mortgage Professor, citing a recent study by The Center for Retirement Research at Boston College, the amount of households that will be unable to maintain their current living standards during retirement account for more than half of all American households. Additionally, financial ... 07/08/2013

Promoting Yourself To Potential Customers In an increasingly global world--where everyone is connected to each other by the click of a button--it's easy to get lost in the shuffle. However, the potential avenues for self promotion have also become more vast and more readily available.  It's one of those things that has to be done, no matter what, because if you are not interested in getting your own name out there, and on everyone's mind, no one else is going to be. You have to make an effort to self-promote before you hope to catch the attention of everyone. One of the important benefits of self promotion is the ability to create and establish your own brand. You have an idea of who you want to be, how you want to be portrayed and, most importantly, who you are. So who better than you ... 07/08/2013

Proposed Changes to the Reverse Mortgage Program In a recent Senate hearing, AARP proposed six changes to the Reverse Mortgage Program in order to better protect consumers and improve the Federal Housing Administration's fiscal condition. The AARP supports the proposed changes to the Reverse Mortgage Program. These include a financial assessment (to determine Reverse Mortgage Program eligibility), property taxes and homeowners' insurance set asides (in order to avoid foreclosure) and limited upfront cash withdrawals. AARP proposes HUD is required report to Congress every two years. This could potentially eliminating any problems that have arisen from HUD's inability to eliminate problems in the past but also might lead to further changes to the Reverse Mortgage Program. The AARP believe... 07/08/2013

Long John Silver's Voted the Worse Restaurant Meal I don't know about you guys but I've been trying to eat better or at least less of things that taste so good but will end up betraying you in worst possible way. It's part of living in today's world, where everything seems to be unhealthy, even if you grill it with at home. Fish, however, seems to be one of those universally health-approved food, rich in Omega-3 Fatty Acids, which can help maintain a healthy heart and brain function, while decreasing the risk of dementia, diabetes and arthritis, according to the Washington State Department of Health.  So it came as kind of a shock to learn that the food in Long John Silver's was voted the WORST RESTAURANT MEAL. In retrospect, I think it shouldn't be that shocking because everything avai... 07/08/2013

Improve Your Home With a Reverse Mortgage Your home is one of your most valuable assets--sometimes even greater than your savings account--so why not make it look as good as possible? A reverse mortgage can be a source of income for seniors hoping to improve their homes in order to prepare for retirement. In an article published by US News, Tom Sightings outlined the five best home improvement projects.  At the top of the list was the kitchen. It's the part of the home that a lot of people send time in, whether they're cooking or not, people have to eat, it's a rule of life. An expensive (looking) kitchen goes a long way, especially to new or old visitors.  The second priority is the bathroom. The luxury of a bathroom is so important that even TIME Magazine did a list of the Top Ten Fam... 07/08/2013

Miami Cafecito Campaign Becomes Official You can complain about the heat and the humidity and the horrible traffic that stretches for at least three hours in the morning and three hours at night but, in the end, there is nothing that even remotely compares to Miami. It's unique flavor of combining customs from different countries in order to create a new one, that is both Hispanic and American is incredible. Most recently, the pots and pans that banged on the night of the Miami Heat win signal to something different brewing in a Miami. In an article that appeared in the Miami Herald describing the 'cafecito' campaign, I realized how lucky I am to live in a city that is so diverse, yet unified, that one cafecito photo sent through Twitter on 3:05 p.m. a year ago can cause a revolution in... 07/08/2013