14 The Hampton Roads Messenger


Volume 10 Number 1


Reverse Mortgages reverse


FROM PAGE 1 mortgage program is the


Home Equity Conversion Mortgage (HECM), which is insured by the U.S. Department of Housing and Urban Development (HUD). Until recently, if the non-borrowing spouse was not on the loan, he or she was not entitled to remain in the property following the death of the borrower. But under HUD's new rules, a non-borrowing, surviving spouse can remain in the home if specific conditions are met. These


changes apply to reverse


mortgage loans in which the borrowing spouse applied for a reverse mortgage before


August 2014. In addition,


the couple must have resided in the property as their principal residence throughout the duration of the HECM, and taxes, property insurance and any other special assessments that may be required by local or state law must have been paid.


The concern regarding


non-borrowing spouses has been the source of many reverse mortgage issues. Here's why: The amount of money a reverse mortgage borrower can draw is based in part on the age of the youngest borrower — and unless all borrowers are 62 or over, they would not qualify for a reverse mortgage.


"Many borrowers who opted to


exclude the younger spouse from the loan in order to qualify for a HECM did so with the hope that when the younger occupant became 62 they could refinance and add the spouse," said Andrea Riche, an FDIC program manager


who oversees reverse


mortgage issues. "But when home prices nationwide dropped in 2007 and


September 2015


2008, the possibility of refinancing into another HECM was eliminated. And if the borrowing spouse passed away, HUD or the private


lender


became entitled to take possession of the home and the surviving spouse was almost always evicted. But now, HUD provides a mechanism for an eligible non-borrowing spouse to stay in the home."


The Consumer Financial


Protection Bureau (CFPB) is warning consumers about potentially misleading


reverse mortgage


advertising. In June 2015, the CFPB issued a consumer advisory saying that many television, and Internet


advertisements


radio, print for


reverse mortgages had "incomplete and inaccurate


statements used to


describe the loans. In addition, most of the important loan requirements were often buried in fine print if they were even mentioned at advertisements


may reverse mortgage


homeowners with the false impression that


leave loans


are a


risk-free solution to financial gaps in retirement."


For example, the CFPB said, "After looking at a variety of ads, many homeowners we spoke to didn't realize reverse mortgage loans need to be repaid." To learn more and for tips, such as the value of developing a financial plan, go to the CFPB website.


Before you decide to get a


reverse mortgage of any kind, talk to a qualified professional. You can find HUD-approved HECM Counseling Agencies near you by accessing this HUD webpage or calling 1-800-569- 4287. The Federal Trade Commission also has a website on determining whether a reverse mortgage is a good product for you and links to additional information.


Scholarship Watch Voice of Democracy


Scholarship Program Veterans of Foreign Wars of the United States (VFW) Each year,


Heritage UMC 815 Baker Rd. 1st


Tuesday 6:30 - 8:00 pm


Oceanfront Library 700 Virginia Beach Blvd. 2nd


Saturday 1:00 - 2:30 pm


Focuss Group 4176 S. Plaza Trail Suite 217 Thursday


2nd 6:30 - 8:00 pm


nearly 40,000 high school students from across the country enter to win a share of the $2 million in educational scholarships and incentives awarded through the VFW’s Voice of Democracy audio- es s ay competition.


all. These older


Adam Densmore, a freshman at Densmore Home- school, was named the 2014-15 Voice of Democ- racy 1st-place winner.


The VFW established the Voice


of Democracy program (VOD) in 1947 to provide students grades 9-12 the opportunity to express themselves in regards to democratic ideas and principles.


The national first-place winner receives a $30,000 scholarship paid directly to the recipient’s American university,


technical school. Other


college or vocational/ national


scholarships range from $1,000- $16,000, and the first-place winner from each (state) VFW Department wins a minimum scholarship of $1,000 and an all-expense-paid trip to Washington, D.C.


WHO CAN ENTER


The Voice of Democracy Program is open to students in grades 9-12 (on the Nov. 1 deadline), who are enrolled in a public, private


or parochial high school or home study program in the United States and its territories.


The 2015-16 theme is: My Vision for America Students should record their


reading of the draft to an audio CD or flash drive. The recording can be no shorter than three minutes and no longer than five minutes (plus or minus five seconds).


Entries begin at the Post level. Once the student creates their essay and completes burning the audio version to an audio CD/flash drive, they can submit their typed version, CD/flash drive and the Voice of Democracy entry form to their local participating VFW Post by the November 1 deadline.


HOW TO ENTER: Visit www.vfw.org


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