Jumbo Reverse Mortgages Gaining Popularity Among High-Value Homeowners

 

Today’s News Synopsis:

 

The latest data from the Commerce Department showed new home sales increased last month by 2.2% to 546,000, their highest since 2008.  Home prices also increased by 0.3% the prior month according to the FHFA.  High-value homeowners are taking a bigger interest in something new: jumbo reverse mortgages

 

In The News:

Housing Wire – “Three American cities score high on global luxury list” (6-22-15)

“What do San Francisco, Los Angeles and Miami have in common besides beaches and tourist attractions? Real estate. All three cities are all on the list of the top ten luxury real estate markets in the world released by Knight Frank.”

Bloomberg – “Sales of New U.S. Homes Rise to Highest Level in Seven Years” (6-23-15)

“Purchases of new homes in the U.S. rose in May to the highest level in seven years, signaling the industry is gaining momentum heading toward the second half of the year.  Sales climbed 2.2 percent to a 546,000 annualized pace, exceeding all forecasts in a Bloomberg survey of economists and the most since February 2008, Commerce Department data showed Tuesday in Washington. Readings for February through April were revised up.”

DS News “CoreLogic Launches New Compliance Solution to Help Lenders With TRID” (6-23-15)

“CoreLogic recently announced the release of its LoanSafe Compliance Manager, a new solution to help lenders comply with a broad array of federal, state, and local residential mortgage lending regulations, including the upcoming TILA-RESPA Integrated Disclosure (TRID) rule.”

Realty Trac – “Can Boomerang Buyers Spark A Real Estate Revival?” (6-23-15)

“Boomerang buyers are out there by the millions, possible purchasers with the potential to heat up the real estate marketplace and with it large parts of the U.S. economy. And yet while the real estate industry is ready to gleefully welcome such buyers the path back to homeownership may be more difficult than expected.”

Mortgage Professional America – “Jumbo reverse mortgage a hit with high-value homeowners” (6-23-15)

“The popularity of reverse mortgages is growing among consumers – and one company is taking that concept to stratospheric levels.  Urban Financial of America, LLC (UFA), one of the top lenders of reverse mortgages in the United States, introduced its HomeSafe proprietary reverse mortgage in September – offering loan proceeds of up to $2.25 million, compared to traditional reverse mortgages or Home Equity Conversion Loans (HECMs), which currently have legislated maximum available loan proceeds of $469,125.”

Bloomberg – “U.S. Home Prices Rose 0.3% in April, FHFA Says” (6-23-15)

“U.S. home prices rose less than economists estimated in April as sellers put more properties on the market.  Prices climbed 0.3 percent on a seasonally adjusted basis from March, the Federal Housing Finance Agency said in a report Tuesday. The average economist estimate was for a 0.5 percent increase, according to data compiled by Bloomberg.”

Housing Wire“Fannie Mae: Economic rebound on the horizon” (6-23-15)

“Recent indicators suggest that the U.S. is experiencing a moderate rebound in economic growth in the current quarter following a temporary drop in activity in the first quarter, according to Fannie Mae’s Economic & Strategic Research Group.”

DS News – “Five Star Partners With Industry to Launch Mortgage Diversity Council” (6-23-15)

“The Five Star Institute has announced the launch of the American Mortgage Diversity Council (AMDC), a member organization comprised of industry leaders and advocates focused on shaping the diversity agenda for the mortgage industry.”

Mortgage Professional America – “Newly creditworthy buyers to ‘flood’ mortgage market” (6-23-15)

“According to a recently released study by credit agency TransUnion, 1.5 million Americans who were forced out of the housing market by the housing crash will flood the housing market in the next two years.”

Bruce Norris of The Norris Group will be speaking at Discover How to Create A $100,000 Payday Per Deal in 2015 – LAREIC on Tuesday, July 14.

Bruce Norris of The Norris Group will be having its Property Buying Bootcamp Tuesday, July 21 to Thursday, July 23.

Bruce Norris of The Norris Group will be presenting the 8th annual I Survived Real Estate 2015 on Friday, October 16.

 

Looking Back:

Existing home sales increased by an impressive amount the previous month with the increase in inventory and improving prices.  Existing home sales increased 4.9% month-over-month and were at 4.89 million. The number of failed banks stood at 11 with the closure of two subsidiaries of River Valley Bancorp.  Inventory for homes increased 11.8%, although most of the homes were purchased by the middle class

Copyright: Image from www.aag.com

 

For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.

 

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