800-822-1190
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Family and Advisors
Family and Advisors
Senior Lending encourages family and advisors to get involved early in the decision process so that they and the senior homeowner can be educated together. Our goal is to work closely with family, caregivers and advisors to ensure that you reach the best solution for your given situation.
A Brief History of the HECM Program
The Rapid Expansion
In 2007, there were over 107,000 Seniors who took out Federally Insured HECM. This number was preceded by more than 76,000 in 2006 and over 43,000 in 2005. As recently as the year 2000, there were only 6,640 Federally Insured HECM's nationally taken out by Seniors. Why such dramatic increases? This is due in large part to consumer education programs launched by AARP with the support of the U.S. Department of Housing and Urban Development (HUD). AARP’s homeowner education program aims to improve the quality and availability of consumer information and counseling on HECM's and related options. Finally the message is getting through. Seniors and their families are getting the information and real facts on the HECM of today.
New Program-HECM Federally Insured
AARP led an 8-year effort to develop a Federally Insured Program. Launched in 1989, the Home Equity Conversion Mortgage (HECM) Insurance Program permits borrowers to access the equity in their home for any purpose they which, while never having to give up title/ownership and without having to ever make a monthly mortgage payment.
HECM's for many Is Family Business
Before Seniors decide to take a HECM, many consult with family members about whether the loan will benefit them. It is not uncommon for children and grandchildren to attend our seminars, workshops and even to be present during appointments. On the other hand, some parents are reluctant to discuss their money matters with their children because they think they will be viewed as no longer capable of making decisions. Some Seniors won’t even onsider HECM's because they are reluctant to draw down the value of their house, the biggest asset they have to leave their children. If children urge their parents not to worry about inheritance issues, they often begin to explore the possibilities. Often times, children who are burdened with the financial responsibility of assisting parents hear about a HECM and think it could relieve them of the burden.
It is mandated by HUD/FHA for the protection of Seniors that a HECM counseling session with a HUD/FHA certified counselor be completed prior to closing on a HECM. This counseling session may include family members.
If you need further assistance your personal Senior Lending Advisor is prepared to answer your specific questions and to demonstrate how this unique program can change the life of your parents, loved one or client. Just call 800-822-1190 to speak to us today.
