In This Issue
Also This Issue
Bankruptcy
On February 28th the United States Senate failed to pass new bankruptcy legislation.
The vote of 48-46 was 12 votes short of the 60 necessary to stop debate and bring the bill to the floor.
Part of the bill would have allowed judges to unravel and re-write primary residential mortgage contracts.
President Bush's senior advisors recommended a veto of the legislation, according to a statement issued on Tuesday, February 26th.
Next Issue
Contracts for Deed.
So, what are the dangers and potential pitfalls to Buyers and Sellers?
With investors and first time home buyers finding it harder to qualify for a traditional mortgage, we may be seeing more sellers and purchasers interested CDs. In the next issue Jeffrey Nycklemoe tackles the questions you may already have. (Top)
New Website
gibraltartitle.com
We are proud to announce the official launch of our entirely new website. It's not just the look that's changed. We believe that it is a very content and resource rich portal that will be helpful in providing essential day-to-day title insurance assistance to our customers. Some of the new features include an updated Online Ordering
page, with no password requirements and no popup windows, which will smoothly guide the user through placing an order in just a few minutes. The same is true of the new Online Scheduling page, just enter a few fields of information and we will quickly contact you with a confirmation. (Top)
Reverse Mortgages
Gibraltar Title Agency has been closing Reverse Mortgage loans for well over a decade. This is a claim that we are proud to make, because we guarantee that you will not find a staff with more experience and knowledge anywhere in the Twin Cities.
Being Innovative
In a traditionally unchanged industry means finding new ways of being flexible. We realize that sometimes there is a need for special attention and flexibility when closing a reverse Mortgage. Gibraltar Title has the staff necessary to meet the needs of any borrower. Bringing the closing to a location more accessible to the borrower or keeping one of our offices open later, are just a couple of examples of how we will work harder to accommodate most every request.
Want an estimate on Reverse Mortgage fees, including Premium and MRT? Check out our new Reverse Mortgage Calculator.
Exclusivley at Gibraltar Title Agency Click Here (Top)
Extra!
Vera Wang Offers 11-bedroom Palm Beach Estate.
The fashion designer has listed her family's oceanfront mansion for $19 million -- one of a slew of properties she and her brother inherited from their businessman father.
Full story at WSJ online
Pass It On
If you know someone who may be interested in receiving this newsletter, you can easily forward up to five copies at once.
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Happening this month
You may have noticed a little extra energy and hustle during your last visit to our Edina location. We are in the process of reshaping our office to make it a little more efficient for everyone. Until everything is complete, we would like to thank you for your patience, and remind you that we are still maintaining our regular hours. If you need later assistance on that special file or think your borrowers may require an after hours closing time, give us a call, our flexible staff has made a commitment to helping you reach your vision.
Featured Article
Reverse Mortgage Legislation
07 March 2008 By Daniel Dominik
In 1950 there were approximately 69,000 senior citizens living in Minnesota. In 2006 we were home to more than 852,000 people age 60 or older. That amount is expected to double before the year 2030.
With the subprime market all but dissolved many brokers and lenders are looking for alternative and creative ways to sustain their past income levels. With these changes in the market, new campaigns have been launched to better help seniors unravel the mystery of Reverse Mortgages.
The rate at which reverse mortgages closed last year grew by more than 110% nationwide. You might think that sounds like a huge number, but even if we look past the accounting practices of the FHA, it's still plausible to agree with their expectation that growth of reverse mortgage will climb past 400% in the next 18 months.
So is there "reform" by means of new legislation on the way?
On February 13th, 2008 President Bush signed into law a bill originally introduced by House Representative Nancy Pelosi (D-California) known as the Recovery Rebates and Economic Stimulus for the American People Act of 2008. That's a long title for what most of us just call "The Rebate Plan". Looking past the rebates, I tried to jump ahead to the new HUD and FHA Mortgage provisions, but found that several items that it had considered were removed, including Sec. 255, the section of the US Housing Act Authorizing HECMs.
In an effort to rush this stimulus package through in record time, both Minnesota Senators Norm Coleman (R) and Amy Klobuchar (D) voted in favor of the stripped-downed bill, which removed provisions addressing the issues we in the mortgage industry are most concerned about.
This leaves us looking backward to the FHA Modernization Act of 2007, which passed through the Senate in December 2007 and currently awaits a House committee hearing.
If passed fairly intact, I consider the following to be the four biggest highlights of the new Bill.
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Cap Removal
The HECM Mortgage is still considered a demonstration product, not a permanent fixture. Because of that only a predetermined number of Reverse Mortgage loans may be granted. The FHA Modernization Act will eliminate both the current status and the limitations associated to it. As it should be, in my opinion, the only ceiling will be market demand.
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Consistent Nationwide Limits
The amount of money a borrower can obtain from their HECM Reverse Mortgage depends, in part, on their county. The new Bill sets a national limit of $417,000. For most brokers this eliminates the headaches of inconsistent County-by-County comparisons and for most borrowers this means more money is likely available to them.
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HECM for Purchases
Today, reverse mortgage borrowers must be a full time resident in their home before they can use a Reverse Mortgage on it. The FHA Modernization Act enables borrowers to actually purchase a home with a HECM reverse mortgage, and a substantial down payment. (Currently only Fannie Mae's Home Keeper®
loan provides this option)
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Cooperative Housing
The new rules would allow the program to cover approved cooperative housing developments.
The upward trend of reverse mortgages is unlikely to yield in the near future. It is extremely important to us, as your title company, that we are well educated and ready to handle any changes that may arise. We are proud to say that we have been doing settlements on reverse mortgages since 1994, and like all other closings each one is personal to us.
If you have not already had an oppurtunity to do so, we invite you to try our one of a kind Reverse Mortgage Calculator. It is an impressive tool developed to provide MRT, Title Premium, Government and Title Fees all with just one click of a button. (Top)
Daniel Dominik has been in the Minnesota title industry for more than 16 years and has been with Gibraltar Title as a Senior Examiner and Claims Administrator since 2001. To read his last article click here.
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