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  #16  
Old 10-14-2020, 06:13 PM
Plinker Plinker is offline
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Assuming a $350,000 home with no mortgage. What is the total commission a reverse mortgage broker would personally expect to receive for forwarding this product to a funding source? I have seen 1 to 2% (and more) as a general amount based on the home value. In my example this would be $3,500 to $7,000 plus.
  #17  
Old 10-15-2020, 06:22 AM
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Last edited by Mrprez; 10-15-2020 at 03:41 PM.
  #18  
Old 10-15-2020, 07:40 AM
stan the man stan the man is offline
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Originally Posted by Stu from NYC View Post
If the bank is underwater on the loan are you sure the taxpayer is stuck with the loss?

Sure not fair to us taxpayers if this is true.
stu did you look it up on google ???
  #19  
Old 10-15-2020, 08:21 AM
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Originally Posted by Stu from NYC View Post
If the bank is underwater on the loan are you sure the taxpayer is stuck with the loss?

Sure not fair to us taxpayers if this is true.
The borrower is required to pay PMI, which covers part of the loan. And, the loan is "Government guaranteed", which means the taxpayers reimburse the bank if they lose money. The reverse mortgage commercials make it sound like the borrower benefits from the Government guarantee and the PMI. But, the borrower usually doesn't need a guarantee because he/she gets all of the cash upfront and doesn't need to make any future payments. So, the Government guarantee benefits the bank, not the borrower.
  #20  
Old 10-15-2020, 08:47 AM
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Quote:
Originally Posted by retiredguy123 View Post
The borrower is required to pay PMI, which covers part of the loan. And, the loan is "Government guaranteed", which means the taxpayers reimburse the bank if they lose money. The reverse mortgage commercials make it sound like the borrower benefits from the Government guarantee and the PMI. But, the borrower usually doesn't need a guarantee because he/she gets all of the cash upfront and doesn't need to make any future payments. So, the Government guarantee benefits the bank, not the borrower.
Man, I'm sorry retiredguy, but this is so incorrect, almost every part of it. I'd gladly correct it personally (email) because quite honestly, I'm about done with this thread because of the hatred some have verbalized. bhancock@comcast.net if you want to continue.
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Let me help you to better enjoy your retirement years. I'll show you how to use the equity in your home to live better. I will also dispel the myths. Please call me for a no obligation talk. God's blessings.
  #21  
Old 10-15-2020, 09:27 AM
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I found this information on HECM reverse mortgage costs on a federal government website. They are initially high and remain so throughout the duration of the loan as interest compounds and fees continue to be periodically added. Counseling is required! Shudder! How much will a reverse mortgage loan cost?
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  #22  
Old 10-15-2020, 10:09 AM
Stu from NYC Stu from NYC is online now
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Quote:
Originally Posted by Bruce Hancock View Post
Man, I'm sorry retiredguy, but this is so incorrect, almost every part of it. I'd gladly correct it personally (email) because quite honestly, I'm about done with this thread because of the hatred some have verbalized. bhancock@comcast.net if you want to continue.
Bruce

He seems like he is asking reasonable questions which for some reason you are refusing to answer. Seems to me you have something to hide.
  #23  
Old 10-15-2020, 02:24 PM
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Bruce seems to have chosen not to reply to my question, as well. Few insurance agents are keen on revealing their commissions. I am not suggesting they should not be paid a reasonable fee for their services. I was just curious if he would be 100% transparent in his response.
  #24  
Old 10-15-2020, 02:46 PM
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[QUOTE=Stu from NYC;1847660]Bruce

He seems like he is asking reasonable questions which for some reason you are refusing to answer. Seems to me you have something to hide.

Okay, here is his post, and I'll answer in the body of his post: The borrower is required to pay PMI, which covers part of the loan. NO, HE PAYS MIP...ENTIRELY DIFFERENT THAN PMI. PMI GUARANTEES THE LENDER IN THE EVENT A BORROWER DOES NOT PUT DOWN 20%. MIP, GUARANTEES THE HOME OWNER THAT HE NOR HIS HEIRS CANNOT EVER OWE MORE THAN THE HOME IS WORTH (UPSIDE DOWN) SAME LETTERS, COMPLETELY DIFFERENT MEANING. And, the loan is "Government guaranteed", which means the taxpayers reimburse the bank if they lose money. TAXPAYERS ARE NEVER CHARGED, BILLED OR PAY THE COSTS. The reverse mortgage commercials make it sound like the borrower benefits from the Government guarantee and the PMI. THAT IS CORRECT, EXCEPT IT IS MIP. But, the borrower usually doesn't need a guarantee because he/she gets all of the cash upfront and doesn't need to make any future payments. NO THE BORROWER CAN TAKE CASH WHENEVER HE/SHE WANTS IT. ALL AT ONCE, $1000 A MONTH, LARGE LUMP SUMS, OR ACTUALLY NOTHING IF HE SO CHOOSES. WHY WOULD HE SO CHOOSE? BECAUSE WHATEVER MONEY HE DOES NOT TAKE, GROWS IN HIS FAVOR AT (RIGHT NOW) ABOUT 4%...SO IF HE QUALIFIED FOR SAY $100,000 AND DIDN'T TOUCH ANY OF IT, NEXT YEAR HE'D HAVE $104,000 AND SO ON. So, the Government guarantee benefits the bank, not the borrower. AS I EXPLAINED, NOT TRUE
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Let me help you to better enjoy your retirement years. I'll show you how to use the equity in your home to live better. I will also dispel the myths. Please call me for a no obligation talk. God's blessings.
  #25  
Old 10-15-2020, 03:28 PM
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I would just point out that, according to the Federal Housing Administration and an independent actuary, the reverse mortgage program had a financial shortfall of about $14 billion for fiscal year 2017. If that money didn't go to the banks, where did it go?
  #26  
Old 10-15-2020, 06:52 PM
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Bruce seems to have chosen not to reply to my question, as well. Few insurance agents are keen on revealing their commissions. I am not suggesting they should not be paid a reasonable fee for their services. I was just curious if he would be 100% transparent in his response.

I have no problem replying to your question, as I have answered every question thrown at me. Please know that because I work all day, often times I'm not on totv until late or the next day. Now, I hate to be vague, but I must be. #1, we are not insurance agents, we are Mortgage Specialist, which is an entirely different licensing/pay scale. Now, to be vaguer (if that is a word...smile) We are all paid differently. Some are paid commission on the draw, some are paid on the value. Also, we are all paid a different %age based on the company we work for and the offer made and accepted. Some people get bonuses, some get raises etc. So again, it is not a question that has a definitive answer, as you assume. Once again, 100% transparent.
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Let me help you to better enjoy your retirement years. I'll show you how to use the equity in your home to live better. I will also dispel the myths. Please call me for a no obligation talk. God's blessings.
  #27  
Old 10-15-2020, 07:06 PM
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Quote:
Originally Posted by Bruce Hancock View Post
Bruce seems to have chosen not to reply to my question, as well. Few insurance agents are keen on revealing their commissions. I am not suggesting they should not be paid a reasonable fee for their services. I was just curious if he would be 100% transparent in his response.

I have no problem replying to your question, as I have answered every question thrown at me. Please know that because I work all day, often times I'm not on totv until late or the next day. Now, I hate to be vague, but I must be. #1, we are not insurance agents, we are Mortgage Specialist, which is an entirely different licensing/pay scale. Now, to be vaguer (if that is a word...smile) We are all paid differently. Some are paid commission on the draw, some are paid on the value. Also, we are all paid a different %age based on the company we work for and the offer made and accepted. Some people get bonuses, some get raises etc. So again, it is not a question that has a definitive answer, as you assume. Once again, 100% transparent.
Transparent? More like opaque; translucent at best. Vague, indefinite, fuzzy perhaps.
Nothing one can actually quantify, even as a ballpark guesstimate.

From the government website I previously cited.

"What are the other upfront costs of reverse mortgages?

Like with a traditional mortgage, borrowers will typically have to pay one-time upfront costs at the beginning of the reverse mortgage loan. These costs include:

Origination fees (which cannot exceed $6,000 and are paid to the lender)
Real estate closing costs (paid to third-parties) that can include an appraisal, title search, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees
An initial mortgage insurance premium: There is an initial and annual mortgage insurance premium charged by your lender and paid to the Federal Housing Administration. Mortgage insurance guarantees that you will receive your expected loan advances. This insurance is different and in addition to what you have to pay for homeowners insurance.
You can pay these costs in cash or by using the money from your loan. If you use your loan proceeds to pay for upfront costs, you won’t have to bring any money to the closing, but the total amount of money you’ll have available from the reverse mortgage loan proceeds will be less.

What are the ongoing costs for reverse mortgages?

Ongoing costs are added to your loan balance each month. This means that each month you are charged interest and fees on top of the interest and fees that were added to your previous month’s loan balance. Ongoing costs may include:

Interest
Servicing fees paid to your lender to cover such costs as sending you account statements, distributing your loan proceeds, and making certain that you keep up with the loan requirements
Annual mortgage insurance premium which is 0.5% of the outstanding mortgage balance and
Property charges such as homeowners insurance and property taxes, and if applicable, flood insurance.
The larger your loan balance and the longer you keep your loan, the more you will be charged in ongoing costs. The best way to keep your ongoing costs low is to borrow only as much as you need."
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  #28  
Old 10-15-2020, 07:50 PM
Bruce Hancock Bruce Hancock is offline
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OKAY, THIS IS MY LAST RESPONSE TO YOU BECAUSE YOU HAVE A CHIP ON YOUR SHOULDER FOR SOME REASON. TO CONVERSE WITH SOMEONE WHO IS CONSTANTLY TRYING TO INSULT AND EVEN INSINUATE DECEIT IS OBVIOUSLY AN EFFORT IN FUTILITY. HERE IS MY RESPONSE IN CAPITOLS: Transparent? More like opaque; translucent at best. Vague, indefinite, fuzzy perhaps. COMPLETELY OPEN, NOTHING HIDDEN
Nothing one can actually quantify, even as a ballpark guesstimate. WHAT?

From the government website I previously cited.

"What are the other upfront costs of reverse mortgages?

Like with a traditional mortgage, borrowers will typically have to pay one-time upfront costs at the beginning of the reverse mortgage loan. These costs include:

Origination fees (which cannot exceed $6,000 and are paid to the lender) CAN BE CHARGED, BUT CAN BE WAIVED, DEPENDING ON SITUATIONS
Real estate closing costs (paid to third-parties) that can include an appraisal, title search, surveys, inspections, recording fees, mortgage taxes, credit checks and other fees...EXACTLY THE SAME AS IF YOU REFINANCED OR PURCHASED A HOME
An initial mortgage insurance premium: There is an initial and annual mortgage insurance premium charged by your lender and paid to the Federal Housing Administration. Mortgage insurance guarantees that you will receive your expected loan advances. This insurance is different and in addition to what you have to pay for homeowners insurance. ALSO INSURES YOU OR YOUR HEIRS CAN NEVER OWE MORE THAN YOUR HOME IS WORTH! LIKE AUTO INSURANCE. NICE TO HAVE IT IF YOU NEED IT, RIGHT?
You can pay these costs in cash or by using the money from your loan. If you use your loan proceeds to pay for upfront costs, you won’t have to bring any money to the closing, but the total amount of money you’ll have available from the reverse mortgage loan proceeds will be less.

What are the ongoing costs for reverse mortgages? NONE OTHER THAN THE INTEREST WE CHARGE ON THE MONEY YOU NEED/USE. RIGHT NOW AT ABOUT 3.5%

Ongoing costs are added to your loan balance each month. NO ON GOING COSTS. ONLY INTEREST ON THE MONEY USED. This means that each month you are charged interest and fees on top of the interest and fees that were added to your previous month’s loan balance. Ongoing costs may include: NO FEES, ONLY INTEREST

Interest
Servicing fees paid to your lender to cover such costs as sending you account statements, distributing your loan proceeds, and making certain that you keep up with the loan requirements...THESE ARE NOT PAID BY THE CLIENT
Annual mortgage insurance premium which is 0.5% of the outstanding mortgage balance THE .5% IS ALSO A PLUS. IT IS ADDED TO THE UNUSED MONEY AVAILABLE TO YOU. THE MONEY AVAILABLE TO YOU GROWS EVERY YEAR. and
Property charges such as homeowners insurance and property taxes, and if applicable, flood insurance. OF COURSE, THAT IS OBVIOUS, YOU PAY THEM NOW, RIGHT?
The larger your loan balance and the longer you keep your loan, the more you will be charged in ongoing costs. The best way to keep your ongoing costs low is to borrow only as much as you need."[/QUOTE] LOOK, I'M DONE CONVERSING WITH YOU BECAUSE YOU ARE NOT LOOKING FOR INFORMATION OR A LOGICAL DISCUSSION, BUT YOU ARE LOOKING TO ARGUE AND TO MAKE INACCURATE STATEMENTS FOR SOME REASON. SHOULD YOU EVER DECIDE TO DISCUSS LIKE A MATURE ADULT, I'LL BE HAPPY TO CONTINUE, BUT AS LONG AS YOU ARE SPEWING HATRED, I'M DONE. BE BLESSED BY HIM.
__________________
Bruce Hancock
Reverse Mortgage Specialist
#90211
Office: 352-633-3204
Cell: 609-617-5723
bhancock@comcast.net

Let me help you to better enjoy your retirement years. I'll show you how to use the equity in your home to live better. I will also dispel the myths. Please call me for a no obligation talk. God's blessings.
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