Life Without Fannie Mae and Freddie Mac from the New York Times

Where would prospective homeowners and borrowers be without Fannie Mae or Freddie Mac?  That question may become a reality if some have their way and abolish both agencies.

Talk of doing away with Fannie Mae and Freddie Mac is still just that — talk. But as Congress considers whether and how to get rid of these agencies, consumers ought to be aware of how a substantial reduction in the government’s role in housing finance could affect their ability to borrow in the future.

“What’s at stake here is access to mortgages at an affordable price,” said Julia Gordon, the director of housing finance and policy at the Center for American Progress in Washington.

A rise in rates would clearly be on the horizon.

Of course, the Times cannot avoid blaming Fannie and Freddie for the mortgage melt-down of a few years ago.  What the Times studiously avoids saying in its reporting is that Fannie and Freddie opened the money flood gates at the insistence of the Clinton White House and HUD secretary Cuomo.

Read the full article.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Reverse Mortgages - bad news ahead?

We have written before about reverse mortgages.  For some seniors, they are a godsend, for others a hellish nightmare. There start-up costs can be great, but their benefits can be just as great.  Yet,

Major changes are coming to the Department of Housing and Urban Development's reverse mortgage loan program as the agency seeks to shore up its finances and better protect seniors.

The Home Equity Conversion Mortgage Program's two products, the standard and saver options, are being consolidated into one program with tighter restrictions and a bigger education component.

The changes are the result of reforms in the Reverse Mortgage Stabilization Act of 2013, passed by Congress and signed last month by President Barack Obama. Last November, the Federal Housing Administration warned that changes in how consumers were using reverse mortgages had strained its Mutual Mortgage Insurance Fund, and the agency faced a $2.8 billion loss from the program.

Well, and so it goes in mortgage land.  Is a reverse mortgage in your future?

Read the full story.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the title insurance agent that does it all for you.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Revitalization money on the way to NJ communities

Thanks to New Jersey’s two U.S. Senators, Lautenberg and Menendez,

counties and municipalities across New Jersey will receive $24,195,998 for various housing and community revitalization programs. The grants, administered through the Department of Housing and Urban Development (HUD), are part of four initiatives: The Community Development Block Grant (CDBG) program, the HOME Investment Partnership, the Emergency Shelter Grants (ESG) program, and the Housing Opportunities for Persons With AIDS (HOPWA) program.

The grant money will be made available through the U.S. Department of Housing and Urban Development.

According to a press release issued by Senator Lautenberg’s office,

The CDBG and HOME programs provide funding to develop decent and affordable housing, enhance infrastructure and develop economic opportunities primarily in communities with large populations of low and moderate-income families.  HOPWA funding provides housing assistance and related support services to meet the special needs of people with HIV and AIDS.  The ESG program provides homeless people with basic shelter and other services.

  Let's hope there's more money coming for New Jersey's struggling communities.

For your next title order or 

if you have questions about what you see here, contact 

Stephen M. Flatow 

Vested Title Inc. 

648 Newark Avenue, P.O. Box 6453, 

Jersey City, NJ 07306 

Tel 201-656-9220 - Fax 201-656-4506 

E-mail vti@vested.com - www.vested.com

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The Reverse Gear - Reverse Mortgages More Appealing & Affordable

GETTING credit is no simple task these days, even under the best of circumstances — just ask anyone who has applied for a mortgage. But it can be even more problematic for those who are retired, with many facing the triple whammy of declining income, falling home values and dwindling savings from Wall Street’s meltdown.

Looking for a way around the continuing credit crunch, more older people are exploring reverse mortgages, which allow homeowners 62 or older to borrow against their equity.

The Sunday, March 15, 2009, New York Times discusses the new interest in reverse mortgages as an alternative to conventional mortgage refinancing. A sidebar sums up the program:

• They can help older homeowners who are house-rich but cash-poor, allowing them to remain in their homes indefinitely, and even finance their retirement.
• Borrowers convert the equity in their homes into cash while retaining ownership. The reverse mortgage does not require monthly payments. It’s usually repaid when the house is sold or the borrowers move out.
• Borrowers must be at least 62 years old and own their home as their primary residence.
• The sole financing source right now is the Federal Housing Administration, an arm of HUD.
• Several factors determine how much can be taken out, including the age of the youngest borrower, current interest rates and property value.
• There are several options on getting your money. Borrowers can choose to be paid all at once, in a lump sum of cash; through a monthly cash advance; through a line of credit to be taken out at any time; or via a combination of these methods.
• Fees are steep, running from $7,000 to $20,000, which is why many financial advisers consider reverse mortgages a financing source of last resort.

To read the full story, go to The Reverse Gear.

Vested Title Inc.
648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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