2008 is expected to be a big year for the reverse mortgage industry. Reverse mortgages are loans for homeowners, 62 years old and older, that allows them to get money from the equity in their home.

The money doesn’t have to be paid back until the owner dies, the home is sold, or the owner leaves.

In 2006, the number of reverse mortgages rose more than 55 percent.

More and more seniors needing extra money have come into Barry Scoles’ office. Scoles is Vice President of First Reverse Mortgage USA.

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Experts worry about home loans 

With the housing market in decline, unscrupulous sales agents are popping up in the booming reverse mortgage industry, where reports of deceptive and high-pressure sales tactics are worrying lawmakers and consumer advocates.

Both say thousands of older Americans could be steered into inappropriate loans, just as millions were lured into shaky subprime loans. Their solution? Better loan counseling and stronger government supervision and regulation.

“We have gone through a savings and loan collapse, a stock market bubble and are currently in the middle of a lending mess. Our goal is to make sure that the reverse mortgages don’t become the scandal of the next decade,” Sen. Claire McCaskill, D-Mo., said at a hearing this month before the Senate Special Committee on Aging.

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Choosing wrong deal could cost extra

Hard to believe, but one part of the mortgage market is hot: reverse mortgages. And that’s giving older homeowners more options to tap the equity in their homes — but also opening the door to more confusion and mistakes.

Only a year ago, homeowners interested in reverse mortgages had little to choose from beyond the plain vanilla, government-backed products that have long dominated the market. Such mortgages essentially allow homeowners at least 62 years old to sell a large chunk of their home equity back to a bank or other lender in exchange for a lump sum, monthly payments or a line of credit.

Now, nearly a dozen large banks and mortgage lenders have launched reverse-mortgage products with lower fees and larger payouts. One lender has reduced the minimum age requirement to 60; others are making loans on second homes and vacation rentals. ”Jumbo” reverse mortgages — for houses valued at as much as $10 million — are becoming more common.

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There are many reasons why people take a refinance car loan. You may be unhappy with your current loan. Your monthly payment may be too high for you to manage. In this case, opting for a car loan refinance may be your best bet. There a few benefits of getting a refinance that I will mention below. There are also some things to be aware of in a refinance car loan or used car financing.

Benefits Of Taking A Refinance Loan

The main benefit of taking a refinance car loan is that you can save money on your monthly payments. The main feature of the loan is the lower car finance rate. This is probably the only reason we need to take such a loan. Lower interest rates mean lower monthly payments. You can either pay off your loan faster or even extend the term of your loan.

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A strict new code of practice governing the reverse mortgage industry looks set to become law.

In her 2007 Review of Retirement Income Policy out this week, Retirement Commissioner Diana Crossan recommended that by next year a code being developed by the Office for Senior Citizens should become legislation.

The review says the market conduct and security of the largely unregulated home equity release industry “must be an urgent priority”.

Reverse mortgages, the most prevalent form of home equity release, enable a person over 60 to borrow against some of the equity in their home. The loan and its accumulated interest is repaid when the person dies or the home is otherwise sold.

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After ’03 state overhaul, study finds rates stable, other states rising faster

Texas homeowners still pay far more for insurance than those in any other state, even after the overhaul passed by the Legislature four years ago that was supposed to lower rates.

A new study from the National Association of Insurance Commissioners showed that the average annual premium in Texas for the most common homeowner policy was $1,372 a year, considerably more than the nationwide average of $764.

Louisiana was the second-highest at $1,144, and Florida was third at $1,083. The premiums in all other states were less than $1,000.

But the study also showed that other states are closing the gap. Many of their rates have seen double-digit increases in recent years, while Texas rates have stabilized. The study is based on premiums collected in 2005.

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Now that the subprime shakeout is nearly over, another real estate mess looms, this time in commercial property. 

So far, the current credit crisis has zeroed in on mortgages for the less affluent. But easy credit was a sprawling millipede whose wobbly legs reached into the farthest corners of the financial markets. This is the year the other 999 shoes start to drop.

Any loan to any borrower can begin to seem subprime if there’s too little down and too much debt. And that, unfortunately, brings us to the commercial-real-estate market.

For the past several years, the market for commercial property-offices, malls, apartment buildings, industrial plants, warehouses, and the like-has enjoyed the very best of times. Prices soared, and lenders lent readily. Owners had no problem meeting their payments. By early 2007, delinquencies had fallen to record lows.

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According to the Mortgage Banker Association, nearly a third of U.S. homeowners live in a house that is mortgage free. You have to wonder if they bought their home 20, 30 or more years ago, and if they had any idea that, in addition to providing shelter and some tax benefits, it would have turned into a great investment.

However, many of the homeowners — especially retirees — find themselves to be property rich and cash poor, which has led to a surge in the popularity of reverse mortgages, a tool that helps people tap into the value of their homes without having to take out a line of credit or, even worse, sell their homes.

However, the popularity of such a program can quickly lead to problems. Last week, the Senate Special Committee on Aging held a hearing called, “Reverse Mortgages: Polishing not Tarnishing the Golden Years.”

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California’s top insurance regulator filed an enforcement action against Blue Shield of California Life & Health Insurance Co on Thursday, accusing the company of illegal behavior toward policy holders and seeking a $12.6 million fine.

California Insurance Commissioner Steve Poizner has asked an administrative law judge to fine Blue Shield $12.6 million after an investigation into consumer complaints yielded 1,200 violations of insurance law in 2004 and 2005.

Poizner said his agency would audit the company’s claims handling through the current year and then would scrutinize the state’s other major insurers.

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Buyers preferring reluctance to possible remorse when their purchases might see a loss in value in the short term

The selection is huge, the interest rates are low and eager sellers are paring their asking prices. And still, would-be homebuyers are about as enthusiastic as 10-year-olds at a gallery opening.

Locally, both pending and closed sales in November posted double-digit declines from a year ago, area Realtor associations said Wednesday. Pending sales were off 21 percent, to 2,615, while closed sales dropped 19.3 percent, to 2,618.

The median sale price of houses that did move dropped a sharp 5 percent to $216,500, the largest year-over-year monthly decline for the Twin Cities yet since the downturn began.

Such declines aren’t a huge concern to most homeowners unless they want to sell their house, refinance their mortgage or get a home-equity loan. But the price slide can clobber people in the market.

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