Reverse Mortgages 2013 Guide Available On

PR Newswire

SAN DIEGO, Aug. 28, 2013 /PRNewswire-iReach/ -- is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the most recent information on mortgage lending news, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Loan Love now provides the latest in mortgage industry with a newly released article delving into the changes of the reverse mortgage loaning process. The new Loan Love article serves as a reverse mortgage 2013 edition guideline in helping loan borrowers better understand the process and knowing which reverse mortgage loan products are most desirable for their financial needs.

The article, "Reverse Mortgage Reform 2013 (Updated HECM Guidelines)" starts off by telling a bit about the home equity conversion mortgage: "For most people, the only way to make use of the equity you've built up in your home is by selling or refinancing and pulling equity out at closing. A reverse mortgage (you may know it by its more formal name – Home Equity Conversion Mortgage or HECM) lets people who are at least 62 years old access that equity using an entirely different approach: Homeowners can take money out of their homes without having to make any monthly payments. What's more, the homeowner keeps the title to their home for the entire time they're living in it."

But reverse mortgages are now experiencing a new facelift that will change the way senior homeowners can use of their home's equity. A new law initiated by the U.S. Congress – call the Reverse Mortgage Stabilization Act has been passed with the intention of introducing new rules and regulations to home equity conversion mortgage lending. These rules and regulations, as the Loan Love guideline states, were made not to hinder, but to help protect the interests of loan borrowers and lenders. How the new law affects both parties are in the following ways:

•    "First, the law requires borrowers have a financial assessment before being approved for a loan to determine which HECM products – if any – are most appropriate for their needs so homeowners don't end up taking on a loan that's not right for them. This protects consumers from unscrupulous or unknowledgeable lenders who may promote loans that don't meet the homeowner's needs, and it also protects lenders by making sure the loans they write satisfy their lending requirements.
•    Second, when necessary, the law requires an escrow account be established to prevent defaults that can occur when a homeowner falls behind in paying homeowner's insurance or property tax bills. This step protects lenders from losing their investment in homes when homeowners can't pay these bills or simply refuse to.
•    Third, the law limits the amount homeowners can draw when the loan is initially approved, only allowing the amount needed to pay "mandatory obligations" such as closing costs and mortgage liens. The goal here is to protect the fund that oversees reverse mortgages from losses that can occur when the entire amount of the loan is drawn out immediately after signing the loan agreement.
•    And finally, the new law requires that changes to the rules regarding reverse mortgages can only be made if those changes are designed to improve the financial safety and reliability of the program."

With these guidelines senior homeowners can confidently take on reverse mortgages without being subjected to more inappropriate lending practices. To learn more about home equity conversion mortgages and the Reverse Mortgage Stabilization Act, please visit

Media Contact: Kevin Blue,, 949-292-8401,

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