Credit Union Magazine - January 2009 - (Page 25) The biggest risk of not providing reverse mortgages is that someone else will—and your credit union may lose senior members. Greg Seltzer, vice president of lending at $830 million asset Los Angeles Firemen’s Credit Union, says offering reverse mortgages “goes hand in hand with offering mortgage products to serve all age groups in your membership.” Reverse mortgages “reverse” the payment roles of the lender and the homeowner. In other words, the lender pays the homeowner. Homeowners age 62 or older can convert a portion of their home equity into tax-free income without selling the home, giving up the title, or taking on a new monthly mortgage payment. Funds members obtain from reverse mortgages are tax-free. They choose to receive funds as a lump sum, monthly income, line of credit, or combination of monthly income and line of credit, according to the National Reverse Mortgage Lenders Association (NRMLA), Washington, D.C. The reverse loan comes due when the homeowner dies or sells the home, or the term of the mortgage reversal is complete. When the reverse mortgage is due, the survivors or inheritors can either pay off the remaining debt or sell the house to repay the reverse mortgage, notes NRMLA. The borrower can’t outlive the loan. He or she won’t owe more than the home’s value at the time of loan repayment. According to NRMLA, the most popular reverse program—the Department of Housing and Urban Development’s (HUD) Home Equity Conversion Mortgages—increased to 112,154 loans in fiscal 2008 (October through September) from 6,640 in fiscal 2000 (Figure I). Still, federally insured reverse cuna.orgÉ JANUARY 2009É CREDIT UNION MAGAZINE Demand for reverse mortgages should increase as seniors face the future with rising expenses. Neil Bartlett Focus u The risk of not providing reverse mortgages: Someone else will. u Demand for reverse mortgages should increase as baby boomers head toward retirement and face the future with rising expenses. u Board focus: Research options and practice due diligence when offering reverse mortgages. 25 http://www.cuna.org
Table of Contents Feed for the Digital Edition of Credit Union Magazine - January 2009 Credit Union Magazine - January 2009 Contents On My Way Leading Edge Spotlight President's Perspective Game Plan Washington Insider Wright Stuff Executive Suite Reverse Mortgages Come of Age Six Merger Myths Leading-Edge Lenders TwentyFour/Seven Bankruptcy Compliance Tools of the Trade Trendlines Rates & Ratios Council Corner Shoptalk System Scan Marketplace Branching Out Advertiser Index Credit Union Magazine - January 2009 Credit Union Magazine - January 2009 - Credit Union Magazine - January 2009 (Page Cover1) Credit Union Magazine - January 2009 - Credit Union Magazine - January 2009 (Page Cover2) Credit Union Magazine - January 2009 - Credit Union Magazine - January 2009 (Page 3) Credit Union Magazine - January 2009 - Credit Union Magazine - January 2009 (Page 4) Credit Union Magazine - January 2009 - Credit Union Magazine - January 2009 (Page 5) Credit Union Magazine - January 2009 - Contents (Page 6) Credit Union Magazine - January 2009 - Contents (Page 7) Credit Union Magazine - January 2009 - Contents (Page 8) Credit Union Magazine - January 2009 - Contents (Page 9) Credit Union Magazine - January 2009 - On My Way (Page 10) Credit Union Magazine - January 2009 - On My Way (Page 11) Credit Union Magazine - January 2009 - Leading Edge (Page 12) Credit Union Magazine - January 2009 - Spotlight (Page 13) Credit Union Magazine - January 2009 - President's Perspective (Page 14) Credit Union Magazine - January 2009 - President's Perspective (Page 15) Credit Union Magazine - January 2009 - Game Plan (Page 16) Credit Union Magazine - January 2009 - Game Plan (Page 17) Credit Union Magazine - January 2009 - Washington Insider (Page 18) Credit Union Magazine - January 2009 - Washington Insider (Page 19) Credit Union Magazine - January 2009 - Wright Stuff (Page 20) Credit Union Magazine - January 2009 - Wright Stuff (Page 21) Credit Union Magazine - January 2009 - Executive Suite (Page 22) Credit Union Magazine - January 2009 - Executive Suite (Page 23) Credit Union Magazine - January 2009 - Reverse Mortgages Come of Age (Page 24) Credit Union Magazine - January 2009 - Reverse Mortgages Come of Age (Page 25) Credit Union Magazine - January 2009 - Reverse Mortgages Come of Age (Page 26) Credit Union Magazine - January 2009 - Reverse Mortgages Come of Age (Page 27) Credit Union Magazine - January 2009 - Reverse Mortgages Come of Age (Page 28) Credit Union Magazine - January 2009 - Reverse Mortgages Come of Age (Page 29) Credit Union Magazine - January 2009 - Six Merger Myths (Page 30) Credit Union Magazine - January 2009 - Six Merger Myths (Page 31) Credit Union Magazine - January 2009 - Six Merger Myths (Page 32) Credit Union Magazine - January 2009 - Six Merger Myths (Page 33) Credit Union Magazine - January 2009 - Six Merger Myths (Page 34) Credit Union Magazine - January 2009 - Six Merger Myths (Page 35) Credit Union Magazine - January 2009 - Leading-Edge Lenders (Page 36) Credit Union Magazine - January 2009 - Leading-Edge Lenders (Page 37) Credit Union Magazine - January 2009 - Leading-Edge Lenders (Page 38) Credit Union Magazine - January 2009 - Leading-Edge Lenders (Page 39) Credit Union Magazine - January 2009 - Leading-Edge Lenders (Page 40) Credit Union Magazine - January 2009 - TwentyFour/Seven (Page 41) Credit Union Magazine - January 2009 - TwentyFour/Seven (Page 42) Credit Union Magazine - January 2009 - Bankruptcy (Page 43) Credit Union Magazine - January 2009 - Compliance (Page 44) Credit Union Magazine - January 2009 - Compliance (Page 45) Credit Union Magazine - January 2009 - Tools of the Trade (Page 46) Credit Union Magazine - January 2009 - Tools of the Trade (Page 47) Credit Union Magazine - January 2009 - Trendlines (Page 48) Credit Union Magazine - January 2009 - Rates & Ratios (Page 49) Credit Union Magazine - January 2009 - Council Corner (Page 50) Credit Union Magazine - January 2009 - Shoptalk (Page 51) Credit Union Magazine - January 2009 - Shoptalk (Page 52) Credit Union Magazine - January 2009 - Shoptalk (Page 53) Credit Union Magazine - January 2009 - Shoptalk (Page 54) Credit Union Magazine - January 2009 - System Scan (Page 55) Credit Union Magazine - January 2009 - Marketplace (Page 56) Credit Union Magazine - January 2009 - Advertiser Index (Page 57) Credit Union Magazine - January 2009 - Branching Out (Page 58) Credit Union Magazine - January 2009 - Branching Out (Page Cover3) Credit Union Magazine - January 2009 - Branching Out (Page Cover4)
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