My Homeowners Advocate Reviews
Mayo’s reverse mortgage experience was recently spotlighted in a Bankrate article , which also appeared in Yahoo Finance this past week.
As an actor, producer, director, writer and teacher, Mayo took a reverse mortgage to free up cash to pursue these passions. She was also able to put away some of the loan proceeds so that she could “do other things with it.”
Mayo, who got her reverse mortgage from American Advisors Group (AAG), said her main concern was whether she would be signing away her house by taking out the loan.
“I wanted to make sure I was making the right decision, for one thing, and my fear was that somebody would take away my house,” she said in the article. “What if I got sick and my daughter wouldn’t be able to pay it? So those were the concerns that I had.”
Mayo’s loan originator assured her that she would continue to retain ownership of her home. As the sole borrower, her decision to proceed with the reverse mortgage was perhaps aided by the fact that Mayo’s daughter does not want to inherit her mother’s house some day.
The benchmark of one million HECMs arrives following one of the lowest fiscal years for reverse mortgage volume seen by HUD in more than a decade. Fiscal Year 2016 finished with 48,902 loans, down nearly 16% from FY 2015. The most recent fiscal year where HECM volume fell under 50,000 units was in FY 2005, which reported 43,131 loans.
October marks the first month of Fiscal Year 2017 for the Department of Housing and Urban Development. Despite volume coming in just under 4,000 loans to start the new fiscal year, the milestone was cause for celebration among reverse mortgage industry leaders, who praised the developments of the HECM program and the one million borrowers served by it.
“To be part of an industry that has helped insure one million reverse mortgages to meet the financial needs of older homeowners is a significant and meaningful milestone,” Reza Jahangiri, CEO of American Advisors Group, told RMD. “With an increase in life expectancy and the current landscape of liquidity for many seniors, we expect to see greater numbers of people tapping into home equity for retirement planning purposes.”