New rule may make it tougher to get reverse mortgage

New Federal Rules Make It Tougher to Get a Reverse Mortgage Thanks to a set of new federal rules doled out earlier this week, it has now become a bit more difficult to obtain a reverse mortgage on your home.

The Ultimate Truth about Housing Affordability Home Blog The Ultimate Truth about Housing Affordability There have been many headlines decrying an "affordability crisis" in the residential real estate market. While it is true that buying a home is less affordable than it had been over the last ten years, we need to understand why and what that means.

Tougher Reverse Mortgage Rules to Take Effect. Effective April 27, 2015, borrowers will have to pass a financial assessment before they can take out a reverse mortgage. The new rules are meant to prevent loan defaults, but they will make it much more difficult to get a reverse mortgage. (The rules were originally scheduled to take effect march 2,

The new rules are meant to prevent loan defaults, but they will make it much more difficult to get a reverse mortgage. A reverse mortgage allows a homeowner who is at least 62 years old to use the equity in his or her home to obtain a loan that does not have to be repaid until the homeowner moves, sells, or dies.

DOJ Settles Redlining Lawsuit Against First Merchants Bank The U.S. Department of Justice (DOJ) recently commenced a redlining lawsuit against KleinBank, a state-chartered Minnesota bank subject to the regulatory authority of the Federal Deposit Insurance.

On February 5, 2015. The new rules are meant to prevent loan defaults, but they will make it much more difficult to get a reverse mortgage. A reverse mortgage allows a homeowner who is at least 62 years old to use the equity in his or her home to obtain a loan that does not have to be repaid until the homeowner moves, sells, or dies.

The new financial assessments. Under the new rules (which sprang from a 2013 law), to get a reverse mortgage, you’ll now be subject to what’s known as a "financial assessment" – much like what lenders do when sizing up applicants for regular mortgages. lenders will now review the income, cash flow and credit reports of prospects.

The reverse mortgage loan has continued to evolve since its introduction in 1961 and only grows stronger and safer with each year. This is primarily due to rules and regulations set by the federal housing administration (FHA). The fha continually updates and regulates reverse mortgages with new guidelines to protect you as a borrower.

Mark Haines provided a false analogy in order to mock a new rule that will reportedly require banks to pass a test before they can repay TARP funds. During the May. would make it harder for such.