Reverse Mortgages – Are They Really Safe?

1st Reverse Mortgage USA™, a division of Mountain Pacific Mortgage, a Colorado based full service mortgage banker specializing in net branching, commercial loans and reverse mortgages today highlighted their list of "Reverse Mortgage Safeguards".

Reverse Mortgages are becoming increasingly popular in this country in part because the borrower(s) makes no payments to the lender as long as the home is used as the primary residence. Also, there are no restrictions on the use of funds from a reverse mortgage, nor do they affect social security or taxes. According to the Wall Street Journal, Fannie Mae estimates that 16 million households will seek reverse mortgages by 2010.

"A reverse mortgage is extremely safe. The reverse mortgage is insured by the Federal Housing Authority (FHA) and so is guaranteed by the federal government. You continue to own your home, but simply reduce the amount of equity in exchange for additional liquid or accessible cash. The money plus interest is paid back when you sell your home, permanently move out of your home, or when the last surviving borrower dies," said Barry Scoles, division manager of 1st Reverse Mortgage USA™. "Your heirs are never responsible for a reverse mortgage debt. If your home does not sell for enough to cover the reverse mortgage, the FHA insurance will pay the difference."

Following are just a sample of the many safeguards that will give borrowers peace of mind about their decision to participate in the Reverse Mortgage program. Reverse Mortgage Safeguards:

Safeguard #1: The federal government, not the lender, controls the amount of your reverse mortgage, the interest rate, the terms of the loan, and the fees that can be charged. This allows you to select a lender based on their knowledge, experience and reputation … not on who is offering the "best deal".

Safeguard #2: First meeting with your Reverse Mortgage lender is for informational purposes only. Federal regulations prohibit any lender from taking any action in processing your reverse mortgage until you have received mandatory independent counseling from a HUD certified reverse mortgage counselor. The counseling is free, and is available at various housing and non-profit agencies in most communities. If necessary, phone counseling is also available through AARP.

Safeguard #3: Federal regulations mandate that your reverse mortgage is a no recourse loan. This simply means that under no circumstances can you or any member of your family be held personally responsible for repayment of any part of the debt. When the home is sold by you or your heirs, if the sales proceeds are not sufficient to repay the debt in full, the balance due the lender is either forgiven or paid by the government’s insurance agency.

Safeguard #4: Government control of the Reverse Mortgage program guidelines assure that no lender can take unfair advantage of you. You will receive third party, independent counseling to verify the accuracy of the information you have received, and neither you nor your heirs can ever be held personally responsible to repay any part of the debt.

"A reverse mortgage may or may not be right for everyone, but you have peace of mind knowing you can proceed without the fear of placing the security of your home or your loved ones in harms way," continued Scoles.

About 1st Reverse Mortgage USA™
1st Reverse Mortgage USA™ is a division of Mountain Pacific Mortgage Company (MPM). We are a Colorado Based HUD approved Mortgage Banker and Fannie Mae direct seller, and MPM owns the Colorado franchise of the USA Loan Network. Last year this network funded in excess of 30 billion dollars in residential mortgages.

Our reverse mortgage division, 1st Reverse Mortgage USA™ is among the top five originators of reverse mortgages in the Southwest region of the country, and among the top 25 in the nation. We have been the featured speaker at numerous consumer and trade events throughout the country, and in 2004 and 2005 we were Colorado’s organizer and host for National Age In Place Week.

1st Reverse Mortgage USA™ is a featured reverse mortgage lender on the consumer advocate web site of the Tom Martino Troubleshooter Network, and in 2003 and 2004 MPM received the Colorado Better Business Bureau’s highest honor the Gold Star Award of Excellence.

Throughout a 10 state region we have organized a Network of more than 70 1st Reverse Mortgage USA™ branch offices, Banks, Credit Unions, and qualified mortgage brokers into the 1st Reverse Mortgage USA Lender Network™. Over the years in our country we have come to expect a certain standard of excellence when a company has received recognition by such organizations as the BBB or the Good Housekeeping Seal of Approval. When you are working with a member of the 1st Reverse Mortgage USA Lender Network™ you can take peace of mind in knowing they have met certain standards or excellence, and are backed by some of the leading experts in their field.

We are currently serving the needs of seniors in the following states: Colorado, Wyoming, Nebraska, Kansas, Missouri, Minnesota, Oklahoma, Arizona, Washington, and Oregon. To locate a member of the 1st Reverse Mortgage USA Lender Network™ in your area please call us toll free at 1-877-217-0166.

1st Reverse Mortgage USA
3609 S. Wadsworth Blvd., Suite 400
Lakewood, Colorado 80235
303-854-3035
1-877-217-0166
www.1streversemortgageusa.com