Reverse mortgages are starting to get popular in the United States because of the reason that it could get money to people's pocket without needing to worry about upfront repayment. This is basically a type of loan that you can take based on the equity of your home.  The fact that one can get this loan without any credit checks or strict income requirements make this type of mortgage very popular among people who need money at the soonest possible time. The success stories in reverse loans, though, don't apply to every people. Some consider getting this type of loan as a very expensive option. But it's true; the entire process could become confusing and overwhelming.  The best way to combat this is to get yourself well informed before obtaining a loan. You should know the pros and cons of getting a reverse home loan. Overall though, if you need a hefty sum of money and you have a high value home, reverse mortgage is for you. And here are reasons why getting a reverse loan ...

There are lots of options when it comes to getting money or obtaining loans if you really need to make ends meet. Many options are available but most for most of them, there are strict requirements to meet to get a grant .  These usually depend on your credit score and your capacity to pay. But one type of mortgage is different and most people older people prefer this type. It is reverse mortgages. It works in a reverse way that most typical loans do. You are not the one making payments, but instead you are receiving payments.  However, not all people can enjoy the advantages of reverse home mortgage. Just the entire process of obtaining the mortgage can be quite confusing and can cost you more money if you don't understand its basics. And probably, among the most important things that you should know about are the interest rates involved in getting a reverse loan. So what's the best offer in terms of interest rates? The interest rates in a granted reverse loan actually depen...

Reverse mortgages have helped thousands of senior citizens to have financial freedom, giving them a lot of opportunities to live a more contented life in their old age.   The benefits this program provides sounds too good to be true, but if you're ever interested to apply for a reverse mortgage, it’s always a wise move to learn both its advantages and disadvantages. PROS OF REVERSE MORTGAGE Improves Quality of Life,  The money that you get out of reverse mortgages can be spent on just about anything that you choose . As a senior, you have the freedom to spend on luxuries as much as you do on necessities.  This contributes to happy living. And I believe that each and every one of us has the right to live life to the fullest even in our old age. Reverse mortgages help make it possible. You Get Tax-Free Money The funds you receive, whether a fixed income or lump sum, are completely tax-free since the money you receive is not an income, but a loan. Do keep in mind to ...

California's Richmond Community Foundation will pursue a new social impact bond vehicle with a $3 million private placement it hopes to close next month.  Officials involved in the deal said the foundation is close to finalizing the terms for nearby San Pablo, Calif.-based Mechanics Bank to purchase the entire $3 million principal. The city of Richmond is conduit issuer for the foundation.  Proceeds will be used to purchase and rehabilitate vacant homes for sale to qualified first-time home buyers. The debt is backed by the revenue the foundation expects from the home sales.   The community foundation's president and chief executive officer, Jim Becker, said the deal's structure as a sort of "modified revenue bond" makes it unique in the social impact bond space. Social impact bonds are a relatively new type of finance devised to deal with social problems local governments may not be able to address due to budget crunches. Investors are repaid if the program meet...

When the Consumer Financial Protection Bureau issued its long-awaited final  Home Mortgage Disclosure Act rule  last week the amount of data readily available to the agency was greatly expanded. This isn't heralded by the mortgage industry, however. Combined with the disparate impact theory, recently recognized by the U.S. Supreme Court under the Fair Housing Act, the HMDA rule further compounds legal risks and business challenges to lenders. The CFPB's 797-page rule takes effect on Jan. 1, 2018, when lenders will begin collecting information, the first wave of which will be reported by Mar. 1, 2019. The influx of available data means the CFPB will be armed with all of the necessary information to run a regression analysis taking into account overlays and the criteria necessary to review overall lending patterns as well as match pairs. Put another way, the data collected by the CFPB will allow the agency to evaluate fair lending both on the basis of socioeconomic class and al...

When the  housing bubble  of 2001-2007 burst, it caused a mortgage security meltdown. This contributed to a general credit crisis, which evolved into a worldwide financial crisis. Many critics have held the United States Congress - and its unwillingness to rein in  Fannie Mae  and  Freddie Mac  - responsible for the credit crisis. In this article, we'll examine the extent to which Fannie Mae, Freddie Mac and their allies in Congress contributed to the largest financial and economic crisis since the  Great Depression . (For background reading, see  What Caused The Great Depression ? )   A Brief History of Mortgage Markets For most of the twentieth century, mortgage lending took place mostly at banks,  thrifts , credit unions, and savings and loans. The most common type of mortgage was a fixed-rate mortgage and most of the financial institutions originating mortgages held the mortgages that they originated on thei...