Reverse Mortgage Trends 2010

This is a guest post of Caleb Manscil

Reverse Mortgage Trends

If you search for “reverse mortgage” in Google Trends one will find some interesting bits of information.  The majority of searches for reverse loans come from the Sun Belt region (the South and Southwest States in the United States—it’s called the Sun Belt because of the long summers and mild winters).  The top ten cities that are searching for reverse loans include Miami, Tampa, Sacramento, Honolulu, Orlando, San Diego, Baltimore, Phoenix, Minneapolis, and Irvine; all but three of the listed cities are located in the Sun Belt region.  This tidbit of information is telling about a couple of things in the reverse mortgage industry.

Reverse Mortgages in the Sun Belt Region

So, why are reverse mortgages searched for more from the Sun Belt region as opposed to population centers like New York, Chicago, or Detroit where credit score repair scores higher?  We can find the answer to that question in the rules and regulations for reverse mortgages.  The first rule for reverse mortgages in the United States is that the borrower must be at least 62 years old.  This loan was created originally for retirees that were house rich but cash poor.  Reverse loans enable such individuals to use their home equity wealth to pay for health and life conditions that have arisen after becoming house rich.  So, regarding that first rule and prerequisite of obtaining a mortgage those that are truly searching and interested in reverse mortgages are likely over or around the age of 62; and where do large populations of those over or around the age of 62 live—within retirement communities in the Sun Belt region.

Another rule or regulation that points to the trending information includes that people must own the majority of their home.  Often, when retirees move to their location of choice to stop working they purchase a home outright or at least purchase the majority of their home. Reverse loans are extended to those that have complete or at least majority ownership of their abode.  Reverse loans are extended on the owners home equity in the form of a lump sum or multiple payments of some sort.  The homeowner doesn’t have to repay until the owner dies, the home is sold, or the owner leaves the home.  This type of loan gives the retiree money to use for other things such as living expenses, medical expenses, or to use at their leisure.

Trends Tell a Story

Understanding the trends within an industry is interesting and important for both consumers and producers, but sometimes it’s much harder to understand what’s going on behind the trends.  For instance if government grant money searches were trending upward, you can rest assured that the media was covering the topic.  With a little bit of trend analysis it’s easier to understand the numbers behind the trends and such is the case regarding the trends of reverse loans.

Zions Bank Reverse Mortgage

Zion Bank Reverse Mortgage Loans

zionsbank-reverse-mortgage

General Information
Zions First National Bank is a subsidiary of Zions Bancorporation which operates through over 500 offices and 600 ATMs in 10 Western states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. As a full-service bank, Zions offers commercial, installment and mortgage loans; trust services; foreign banking services; electronic and online banking services; automatic deposit and nationwide banking and transfer services; as well as the more familiar checking and savings programs.

Life seems to get more expensive every day. And, there’s no end in sight to the expenses. After all those years of house payments, yard work, and seemingly endless home improvements, isn’t it time to profit from that effort?

 

That’s where a Zions Bank Reverse Mortgage can save the day. It’s so flexible, you can completely tailor it to your own life – whether it’s extra income each month, or a handy line of credit for unexpected purchases. It’s the perfect way to get the extra money you need.

Enjoy Life The Way You Like
With a reverse mortgage from Zions Bank, you can have easy access to the equity reserve of cash you’ve built up in your home. As a result, you’ll have the funds to buy a new car, take that trip of a lifetime or anything else you have in mind.

Here’s the best news: You’ll still retain ownership of your home. Whether you choose later to sell it or stay in it for the remainder of your life, it’s totally your decision. Our reverse mortgage lets you keep your life just the way it is, only better.

Here’s How A Reverse Mortgage Works
They call it a reverse mortgage for a very good reason – it’s just opposite of buying a home. Here’s how: When you buy a home, you use a mortgage to turn your income into equity. With a reverse mortgage you turn your equity into income. You still retain ownership of your home. All it takes is a call to one of Zions Bank’s friendly loan officers. They’ll help you understand whether or not the reverse mortgage program is right for you. If it is, they’ll continue to help you every step of the way to make sure you’re 100% satisfied.

A Safe Way To Access Your Home’s Equity
For your safety and protection, reverse mortgages are insured and monitored by the federal government similar to a regular mortgage. We comply with federal laws and guidelines to ensure that our customers are completely protected.

In fact, a reverse mortgage is the safest of all mortgages – period! Remember, you retain the title of your property, you’ll never owe more than the value of your home and you’ll never outlive the loan or be obligated to make payments as long as you own and occupy the home. The U.S. Department of Housing and Urban Development guarantees it. You’ll also have the confidence of Zions Bank behind you. We’ve been helping people since 1873. We’re here to help you, too!

Fees & Charges
As with most mortgages, there are typical fees that apply to a reverse mortgage. Usually, these fees can be completely financed. Which means you won’t have to pay for them out of pocket. Once your Zions Bank Reverse Mortgage is in place, you won’t have to worry about any other fees or payments during the life of the loan.

Determining Eligibility
To participate in the Zions Bank Reverse Mortgage program, you and any joint borrower must be at least 62 years of age. You must own your home free and clear, or pay off any existing balance on your present mortgage. You can use a portion of the proceeds of your new reverse mortgage for this purpose. In addition, the home for which you’re receiving the reverse mortgage must be your principal place of residence. Call one of our loan officers for full details, and see if a reverse mortgage is right for you.

Work With A Bank You Can Trust
At Zions Bank we’re committed to helping you. We’re your local bank, and the people you’ll be working with are neighbors in your own community. When it comes to financial matters we’re a proven, safe choice

California Reverse Mortgage Information

The California Reverse Mortgage climate is continuing to grow strong.  After a record numbers and as credit becomes easier to obtain expect many more reverse mortgages to be completed this year.  With Los Angeles and Orange County leading the way rest assured that the impact of the economy has helped to erode much of the equity that was created during the boom years.

One fact that is easy to forget is that unlike much of the population seniors happen to have been fortunate enough to have owned their home outright before California real estate prices began to grow.

Federal Office
Location
HECM
Loans
Sep-2001
to
Feb-2009
FRESNO 7,866
LOS ANGELES 22,150
SACRAMENTO 12,706
SAN DIEGO 6,928
SAN FRANCISCO 11,932
SANTA ANA 19,835

While the Housing of Urban Development has yet to release complete totals for 2008, the numbers below show that demand is still high with strong numbers for 2009.

Calendar
Year
HECM
Loans
Sep-2001
to
Feb-2009
2001 452
2002 2,390
2003 4,272
2004 11,569
2005 14,719
2006 23,955
2007 18,599
2008 5,461

The California Reverse Mortgage is dominated by Wells Fargo Reverse Mortgage loan officers.  With competitive rates and aggressive agents combined with falling fees on reverse mortgages, Wells Fargo has found a good niche in the mortgage market.

Top California HECM Lenders HECM
Loans
Sep-2001
to
Feb-2009
WELLS FARGO BANK NA 19,569
FINANCIAL FREEDOM SENIOR FUNDI 6,575
SEATTLE MORTGAGE COMPANY 4,965
LIBERTY REVERSE MORTGAGE INC 4,850
WELLS FARGO HOME MORTGAGE INC 3,747
HOME CENTER MORTGAGE 1,951
SENIOR FUNDING ASSOCIATES 1,660
REVERSE MORTGAGES OF CA IN 1,459
PACIFIC REVERSE MORTGAGE INC 1,456
CALIFORNIA REVERSE MORTGAGE CO 1,426
NEW HORIZONS REVERSE MORTGAGE 1,417
LIBERTYSTREET FINANCIAL GROUP 1,194