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August 11, 2010 Wednesday 9:00 AM EST
Reverse Mortgage Proceeds Likely to Decrease October 1; Seniors Encouraged To Get Maximum Financial Return On Home Equity Before FY11 Budget Cuts
ATLANTA, Aug. 11
ATLANTA, Aug. 11 /PRNewswire/ — Seniors should be informed that the budget proposals working their way through both the House and Senate, as currently drafted, bring a 150 percent increase in annual FHA (Federal Housing Authority) insurance premiums, as well as reductions in available proceeds on FHA-insured HECM (Home Equity Conversion Mortgage) reverse mortgage loans.“Now is a good time for seniors to take advantage of low rates on reverse mortgages and get the maximum return on the product before the new fiscal year starts this fall,” said Jeff Lewis, Chairman of Generation Mortgage Company. According to Lewis, starting October 1st, both bills will change the HECM value proposition if approved in their current form. “With the upcoming Senate vote, seniors have limited time to take advantage of the current pricing on reverse mortgages,” commented Lewis. “Reverse mortgages provide financial independence to thousands of seniors struggling to sustain their retirement. A majority of our borrowers use reverse mortgages to pay off existing traditional mortgages, and free up much-needed income.”In early July, the Transportation Housing and Urban Development, and Related Agencies Appropriations Subcommittee met and provided $150 million in funding for the Federal Housing Administration’s reverse mortgage program. The bill passed the full House Appropriations Committee late last month and went to the House of Representatives two weeks ago. In the house, the appropriation was lowered to $140 million, and later passed by a vote of 251 to 167. It is not yet clear when the bill is headed to the Senate.About Generation Mortgage®Generation Mortgage Company is the largest privately owned reverse mortgage retailer and wholesaler in the United States, a member of NRMLA (National Reverse Mortgage Lenders Association) and is Better Business Bureau A+ accredited. With its sole focus on reverse mortgages, Generation Mortgage is known in the industry as offering the “gold standard” in customer service, providing loan servicing for nearly all of its retail and wholesale reverse mortgage loans. Licensed in 47 states, Washington, DC and Puerto Rico, Generation Mortgage offers FHA-insured HECM (Home Equity Conversion Mortgage) loans, including fixed and adjustable rates, HECM for Purchase and Generation Mortgage’s new proprietary jumbo Generation Plus® reverse mortgage loan. Generation Mortgage benefits from the strategic and financial support of its controlling shareholder, Guggenheim Partners, LLC, a renowned financial services firm with more than $100 billion in assets under supervision.NMLS #1319; Corporate Office: 3 Piedmont Ctr, 3565 Piedmont Rd NE, Ste 300, Atlanta, GA 30305; Arizona Mortgage Banker License #0909296; Arkansas Combination Mortgage Banker-Broker-Servicer License; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act; Colorado, To check the license status of your mortgage loan originator, visit http://www.dora.state.co.us/real-estate/index.htm; In CT, licensed and DBA as Generation Reverse Mortgage, Inc.; Georgia Residential Mortgage Licensee #22292, Generation Mortgage Company, 3 Piedmont Ctr, 3565 Piedmont Road NE, Ste 300, Atlanta, GA 30305; Illinois Residential Mortgage Licensee # MB.6760368; Kansas Licensed Mortgage Company #MC.0001660; Massachusetts Mortgage Lender-ML3240; Licensed by the Mississippi Department of Banking & Consumer Finance; Nevada #2970, 800 N Rainbow BLVD, Ste 170, Room 164, Las Vegas, NV 89107, Phone# 702-948-5031; Licensed by the New Hampshire Banking Department as Generation Mortgage Company d/b/a Generation Mortgage Company, Inc; Licensed by the N.J. Department of Banking and Insurance, 51 JFK Parkway, Suite 114, First Floor West, Short Hills, NJ 07078, Phone # 973-218-2418; Licensed Mortgage Banker- NYS Banking Department; Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; TX SML License #68405; Licensed by the Virginia State Corporation Commission #MC-4832; Also conducts business in AL, DC, DE, FL, HI, IA, ID, IN, LA, MD, ME MI, MN, MO, MT, NC, ND, NE, NM, OH, OK, OR, PR, SC, SD, TN, UT, VT, WA, WI, WV, WY. Not all products and options are available in all states. Terms subject to change without notice. ©2010 Generation Mortgage Company. All Rights Reserved.