Three charged with reverse mortgage ring

Three metro Atlantans have been indicted for allegedly running a reverse mortgage fraud ring.

Jonathan Alfred Kimpson, 27, of Lithonia and Gia Harris, 26, of Atlanta were indicted by a federal grand jury on charges of conspiracy to commit financial institution fraud involving so-called “reverse” mortgages. Kimpson was also charged with aggravated identity theft and wire fraud.

Kelsey Torrey Hull, 38, of Lithonia was charged on Feb. 25 in a criminal information related to the same scheme, on a charge of financial institution fraud and conspiracy.

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Home Values for Older Americans Finally Begin to Rebound in Fourth Quarter 2009

Average home values for older Americans have halted their slide after remaining flat or declining for seven consecutive quarters. The national average self-reported home value of older Americans rose from $369,762 in the third quarter of 2009 to $381,895 in the fourth quarter of 2009.

Older Americans were one of the last segments of the population to see home prices rebound, but overall home values for seniors remain significantly lower than 2008 levels. Despite this rise in the national average, the report also showed significant decline in many large states, including Florida, Texas and New York.

This mixed recovery in terms of senior home values will likely continue as individual markets reduce inventory and regain their footing. Data from the most recent S&P/Case-Shiller(1) Home Price Indices shows that many markets within these states continue to show improvement, and this should eventually contribute to an increase in home values for older Americans as well.

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Some retirees use reverse mortgages to pay for affluent lifestyle

What many people have now — house, lifestyle, neighborhood, friends, church, club — is exactly what they’d like to keep.

Unfortunately many older folks simply don’t know how or where to look to find the funds that would allow them to do so. The immediate need for seniors now is supplementing the income to provide the standard of living they desire.

In the past, the typical reverse mortgage was taken out by a single woman, age 75, who needed funds to fix up her home so she could comfortably age in place. But reverse mortgages are now also being used to support a more well-to-do routine.

For example, former Puget Sound-area residents Frank Williams, 77, and his wife, Carla, own 35 weeks of time shares each year in five different systems. They work points, bonus time and favored status like some people work airline miles. They know how to successfully maneuver through each different organization to gain the maximum overall benefit. They are now actively filling in their timeshare schedule into calendar year 2022.

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KBC Sells U.S. Mortgage Business

Belgian bank, KBC, has divested its U.S. reverse mortgage business, releasing about $800 million in cash, The Wall Street Journal reports. The sale of the portfolio, which was part of the KBC Financial Products division, is also likely to reduce its risk profile.

Bank of America is said to have acquired the portfolio, adds Reverse Mortgage Daily. The bank has reviewed its strategic plan and decided to focus on retail and private banking customers, along with small and medium sized enterprises in Belgium and Central and Eastern Europe.

Click here for the story from The Wall Street Journal.

Click here for additional coverage from Reverse Mortgage Daily.

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Reverse Mortgage Guide [Australia]

The reverse mortgage can be a solution to compliment the limited superfund. Is it a scheme where property owners have access to the money they had accumulated throughout their life as equity to their home.

Through the reverse mortgage, you can “borrow” money for a period of time (usually between 10 and 20 years) against the value of your home, but without giving the house up. This money can be received either in a single payment in the form of monthly payments or as a line of credit which is available to the limit of the total borrowed funds. A reverse mortgage can either be on a residence or any other property that the person may have ownership until death. In fact, the bank will not require that the money be repaid until the property is sold or the owner dies. Banks advise to take on a monthly pension as security, in case the owner may live longer than the term of the mortgage.

The alternative to reverse mortgages is the sale or rental of the property. In both these cases one has to leave their home and look for another, which isn’t the most desired option for adults who want to continue living at home.

Reverse mortgages may only be granted by accredited institutions and by those insurance companies authorized to operate in Australia.

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Florida legislation aims to safeguard reverse mortgages

The Indianapolis 500. The Daytona 500. Now comes the Florida Legislature 2010.

If legislation is compared to an auto race, then some proposals on a fast track might be ready to take the checkered flag soon after lawmakers gather March 2 for the first day of the Legislature’s 2010 session.

State Sen. Mike Fasano, R-New Port Richey, has been guiding three of his bills toward speedy approval – changes to the Florida Public Service Commission, reverse mortgage safeguards and public employee collective bargaining.

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Reverse mortgages can be useful, but do your research

The reverse mortgage is a financial tool that is growing in popularity. Designed as a means for elderly homeowners who have substantial home equity and wish to stay in their homes, a reverse mortgage can provide tremendous peace of mind to seniors and help them stay out of painful debt. However, potential borrowers must understand the specifics of a reverse mortgage, be cautious and beware of those looking to take advantage of senior homeowners.

By educating themselves, seniors can avoid these bad decisions, decide if a reverse mortgage is the best course and find an ethical provider. While these loans can be appealing (instead of making monthly payments, the bank pays you – either as a fixed amount each month, or a lump sum), they also are complex. If you believe a reverse mortgage could work for you or your family member, the next step is to gain a realistic understanding of this type of loan.

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A reverse mortgage could help some seniors

For many people, their home is their single largest asset. Seniors, in many cases, may have limited “liquid” assets, such as money in the bank, but may own their homes free and clear. This can create problems with cash flow during the retirement years, especially for those who have insufficient income to pay property taxes or make needed home repairs.

For some people, a reverse mortgage or home equity conversion may be the answer.

A reverse mortgage is exactly what it sounds like, that is, a loan against the equity of your home which generally converts that equity into tax-free funds. The borrower must be 62 years old or older, and occupy the property as their principal residence. The home must be mortgage free, or have a small remaining mortgage which will be paid off by the reverse mortgage.

No income, employment or credit requirements are necessary, but the borrower must receive counseling from a HUD-approved agency to receive a certificate of eligibility. The loan can be advanced as a lump sum, fixed monthly cash advances, or a line of credit.

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The Post and Courier – Reverse-mortgage test a puzzler

Charleston SC — Forget the bar exam for lawyers or the SATs for high school seniors.

A mandatory nationwide licensing test for reverse-mortgage counselors is stumping veteran housing specialists, some of whom have been advising elderly homeowners in the Charleston area about this type of loan for years.

Several months after the federal government made the exam more difficult, no Lowcountry housing counselor has been able to pass the exam. As a result, area homeowners in search of the required counseling are being referred to agencies in Columbia or Greenville.

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The Case For Becoming Your Mom’s Banker

A reverse mortgage is an appealing way to extract cash from your house — but it comes with baggage.

Reverse mortgages, which homeowners who are at least 62 years old can use to tap their home equity, have become more popular in recent years. The homeowner takes out a new loan on the house. The bank then gives the homeowner a lump sum, a line of credit or a regular monthly payment — almost like an annuity. The loan is repaid, with interest, when the borrower dies, moves or sells the house.

But there are significant drawbacks. The fees can run as much as 7% of the home’s value, compared with roughly 3% for a conventional loan. Lenders typically won’t allow homeowners to borrow against all of their equity. And in the end, if the loan isn’t paid back, the lender gets the home.

Families in which at least one adult child has amassed a nest egg have another option — buying the house outright, or using some of that money to set up a private reverse mortgage.

Even though it’s a family loan, you should still record it legally so other family members can’t attack the arrangement after your parents die, says Kenneth Kossoff, an estate-planning attorney in California. He also advises paying for a title search to make sure there are no other liens on the house before you make the loan. There also are tax considerations.

Could one of these deals blow up? Certainly. A child funding a reverse mortgage could lose his job and stop paying his parents. Another risk: Home values could fall further, meaning you lend your parents more than you can get in return for selling their house.

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