Page 10 - Your Guide to RM Booklet
P. 10
HECM Updates: Real Borrower, Real Story
A Better Solution for Borrowers
Sent to the Corporate Officers of
American Advisors Group
For 30 years, older adults have been able to take advantage of
HECM loans as way of improving their finances. Through the By way of introduction, I am
years, government-insured loans have been updated to become Vincent S., 85 years old, a veteran
better, safer and more flexible. of World War II (101st Airborne Division,
Battle of the Bulge, Bronze Star, Purple
Below are the most recent updates: Heart) and the happy recipient of one
of your reverse mortgages.
FINANCIAL ASSESSMENT: A financial assessment is
required by HUD to ensure that a reverse mortgage can To American Advisors Group, we seniors give thanks to an
be a sustainable, long-term solution for borrowers. honest, well-run company that has impacted our lives. But
to me. the personification of American Advisors Group is
Frank. Here is a man who comes across not only as a brilliant
NON-BORROWING SPOUSE: Loan amounts are now professional, but a kind human being who is concerned for the
available to borrowers with a non-borrowing spouse personal lives of his clients.
under the age of 62. Rules allow the surviving eligible
spouses of borrowers who pass away to remain in the Let me give you an example. My case was complicated by the
home under the same loan terms. fact that my wonderful wife of 62 years is now in a nursing
home. The title company raised all kinds of legal objections to
the loan that I hardly understood. Frank could very easily have
MORE AFFORDABLE OVER TIME: Upfront mortgage dropped the matter right there. American Advisors Group had
insurance premiums (MIPs) have been standardized done its part but no loan could be made without approval of
by the Federal Housing Administration to bolster the the title company. Frank would not stand for that. When he
reverse mortgage loan product. The (FHA) has set the knew how much the reverse mortgage meant for me, how it
upfront MIP to 2% of the appraised value of the home. could change the quality of my life for my remaining years, he
A reduction in annual MIPs has made the loan more went to work. He explored all the means of correcting the legal
affordable. Borrowers will now be charged an annual problems. And after countless hours of what I am sure was
MIP of 0.5% of the outstanding mortgage balance a lot of extra work, he succeeded. He has made a significant
difference in my life and I shall be eternally grateful to him.
- reduced from 1.25%. This reduction can add up to Thank you all again.
thousands of dollars saved over the life of the loan.
Vincent S., IL - WWII Veteran
(101st Airborne Division
Battle of the Bulge -
Bronze Star, Purple Heart)
Your Guide to a Better Retirement 6
