Latest news with #FederalHousingAdministration
Yahoo
2 days ago
- Business
- Yahoo
More people are late on both their mortgage and student-loan payments — another bad sign for the economy
An increasing number of borrowers are falling behind on both their student-debt and mortgage payments — a development that's worrying economists about the state of the housing sector and the broader U.S. economy. Student-loan delinquencies are rising sharply, as are delinquencies on mortgages backed by the Federal Housing Administration, according to a new report by the Federal Reserve Bank of New York. 'Stagflation is coming to the U.S.,' says this economist. Here's what it means for the dollar, bonds and stocks. SoundHound earnings show a growing embrace of voice AI, and the stock is surging 'I'm tired of corporate America': My wife and I have $1.65 million. I'm 61. Can I retire already? Trade Desk's stock may see its worst drop ever, and analysts wonder if Amazon is to blame Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes The New York Fed's data indicate that one-tenth of student-loan debt was reported as seriously delinquent in the second quarter of this year, meaning those borrowers were 90 days past due on payments. The analysis also shows even though FHA mortgages — typically used by first-time and lower-income buyers — only make up about 12% of mortgage balances, the delinquency rate on those loans has been the steepest. Nearly 40% of borrowers with an FHA loan had missed a single payment — higher than the share of FHA borrowers who did so before the pandemic, in the first quarter of 2019, New York Fed researchers said. Both the student-loan and FHA-delinquency trends come at a time when the U.S. economy is showing signs of weakness. If younger people are 'drowning in debt' and the labor market starts to crack, 'this gets uglier fast,' Orphe Divounguy, an economist at Zillow Z, wrote on LinkedIn. July's jobs data, released last week, showed a marked slowdown in hiring. As more young, aspiring homeowners see their credit scores drop from the impact of student-loan delinquencies, it will likely take time for them to bring their scores up to a level that would allow them to take on a mortgage, Divounguy told MarketWatch in an interview. That could lead to lower demand for housing in the future and would be bad news for the industry, which last year saw home sales fall to the lowest level in about 30 years, according to the National Association of Realtors. Home sales have remained subdued for most of this year. 'The rise in defaults on student debt is especially concerning,' Jessica Lautz, deputy chief economist at NAR, told MarketWatch, 'as the share of first-time home buyers has already declined to record lows and the age of first-time home buyers has hit all-time highs.' The typical first-time buyer in the U.S. is now 38 years old, compared with age 35 the year before. If we were to see the job market weaken further and layoffs increase, then we would 'need to worry about the U.S. economy,' Divounguy said. Should people who are already falling behind on their auto-loan, credit-card and student-loan payments end up losing their jobs, the economy would face a 'massive headwind' as consumer spending takes a hit, he added. Related: Home prices hit an all-time high, but some regions are seeing price declines Jake Krimmel, a senior economist at said that he's more worried about the increase in delinquencies among homeowners who have an FHA-backed mortgage. While FHA loans make up a relatively small share of the market, they're over four times more likely than non-FHA loans to fall into delinquency, he told MarketWatch. The rise in mortgage delinquencies may also be an early indicator of distress among American consumers. 'The real warning sign is that rising mortgage delinquencies may signal a softening labor market,' Krimmel said. 'This is especially true in certain regions and among lower-income households.' Most of these FHA mortgages are concentrated in the South, where home prices are falling the fastest. Homeowners in that region are increasingly cutting prices to sell homes, per data. ( is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.) The New York Fed's analysis found FHA delinquencies were relatively more elevated in Southern states and Puerto Rico. 'If price declines continue, some recent FHA borrowers may find themselves underwater, increasing the risk of distressed sales and putting further downward pressure on prices in those markets,' Krimmel said. The share of homeowners who are underwater on their mortgages — meaning that they owe more on their mortgage balance than what their home would sell for in the current market — has been growing recently. The percentage of mortgages that are underwater was highest in June in places where prices skyrocketed during the pandemic, such as Cape Coral, Fla., and Austin, Texas, according to data provided to MarketWatch by Intercontinental Exchange ICE. Falling home prices could serve as a double whammy for these homeowners: Not only are they grappling with missed debt payments, but they could also potentially lose money on their home if they were forced to sell. To be sure, it is 'too early to say this is happening at scale,' Krimmel noted, though it is a trend worth watching closely. Below is a map of the top five markets where homeowners with a mortgage had the highest share of negative home equity, as of June 2025. Trade Desk's stock tumbles after earnings. Are investors being too harsh? 'This scam stuff is going to get worse': A man approached me in my car — he had a crazy story Why Fortinet's stock just saw one of its worst drops on record 'I feel shaken': A man offered to powerwash my patio for $50. He would not take no for an answer.
CBS News
01-08-2025
- Business
- CBS News
How much can a 70-year-old borrow with a reverse mortgage right now?
The retirement landscape has shifted dramatically in recent years, with many Americans now finding themselves equity-rich but cash-poor as they enter their golden years. While traditional pension plans have largely disappeared and Social Security benefits continue to face pressure, one asset has quietly grown into a financial powerhouse for older homeowners: their home equity. According to recent data, the average homeowner holds approximately $313,000 in home equity, representing a substantial untapped resource for just about anything, including retirement funding. This timing couldn't be better, either, as this year has ushered in significant changes to the reverse mortgage landscape that directly benefit older borrowers. For 2025, the Federal Housing Administration (FHA) increased the maximum claim amount for Home Equity Conversion Mortgages (HECMs) to $1,209,750 — a jump of nearly $60,000 from last year's limit. And, while Federal Reserve rate cuts have been paused over the last several months, the rate cuts that occurred in 2024 helped ease some of the pressure on borrowers, making this a good time to consider a reverse mortgage. These developments represent a particularly compelling opportunity for 70-year-olds who are interested in this type of borrowing. At age 70, borrowers are old enough to qualify for substantial loan amounts, yet typically young enough to maximize the long-term benefits of a reverse mortgage loan. But exactly how much can someone at this age actually borrow in today's market? That's what we'll examine below. Find out how you can supplement your retirement income with a reverse mortgage here. At age 70, you would qualify for higher payout ratios compared to someone just meeting the minimum age of 62. HUD uses what's called a Principal Limit Factor (PLF) to determine what portion of your home's value (up to the national lending cap) you can access. For a 70‑year‑old borrowing at a typical interest rate (around 6 % currently), the PLF would be about 41%. To get a rough estimate of your borrowing limit, you would multiply the PLF against your home's value. So, if your house is worth $500,000 (below the FHA cap), the gross principal limit would be roughly $205,000 (0.41× 500,000 = $205,000). But if your home is valued, or capped, at the full $1,209,750, the maximum gross proceeds would be about $495,997 (0.41 × 1,209,750 = $495,997.50). Note, though, that the estimates above are calculated before accounting for fees, closing costs, mandatory obligations or a required life‑expectancy set‑aside (LESA). After those are deducted, your net principal limit, which is the actual amount you can choose to receive, will be lower. But what if your home is valued higher than the HECM cap allows? In these cases, you have the option to consider a proprietary jumbo reverse mortgage, which is a type of non‑FHA reverse mortgage that goes above the FHA limit, and can allow you to borrow as much as $4 million in some cases. However, this type of reverse mortgage loan does not have FHA insurance backing it. Explore your reverse mortgage borrowing options and find the right fit online now. While your age and home value set the baseline for how much you can borrow with a reverse mortgage, the strategies outlined below can help you get even more value out of your loan: Reverse mortgages offer several ways to receive your funds: a lump sum, monthly payments, a line of credit or a combination. If you don't need all the money right away, a line of credit can be especially powerful, as the unused portion of your credit line grows over time, giving you access to more funds later. This option is ideal if you want a financial cushion for the future. Reverse mortgage loan amounts are tied to the expected interest rate. The lower the rate, the more money you can borrow. Some lenders let you lock in a rate for up to 120 days, which can protect your borrowing power while you shop around or complete the application process. Not all lenders charge the same fees. Some may offer lower origination charges or waive certain closing costs. Since these expenses are deducted from your loan proceeds, finding a lender with competitive pricing can increase the actual amount of money you pocket. An experienced reverse mortgage professional can help you evaluate all your options and identify the best setup for your financial goals. They can also walk you through the process, ensure you understand all the costs involved and help you avoid common pitfalls. With so many moving parts, having the right guide can make a significant difference. For 70-year-olds considering their retirement financing options, the current reverse mortgage landscape presents a uniquely favorable opportunity. With today's high FHA lending limits and relatively stable interest rates, borrowers may be able to extract substantial value from their home equity. However, as with any major financial decision, it's crucial to thoroughly evaluate your unique circumstances, understand all costs and obligations and work with qualified professionals to ensure a reverse mortgage aligns with your long-term retirement strategy and estate planning goals.
Time Business News
18-07-2025
- Business
- Time Business News
What to Ask Reverse Mortgage Brokers Before Committing
Reverse mortgages are valuable tools that support senior homeowners' financial security and independence. While they offer financial flexibility, their intricacies can be easily misunderstood. This loan allows you to utilize your home equity without selling the property. Still, it also has terms, responsibilities, and long-term implications that can affect your future and your family's inheritance. Therefore, asking the right questions before signing any contract is paramount. The goal isn't simply to get answers; it's to understand what you'll agree to, ensure the broker is acting in your best interest, and make sound financial decisions. To simplify things for you, here's a breakdown of things to clarify and why they matter: Before getting into the loan's intricacies, you must confirm that you're working with a reputable, experienced loan officer. They must be honest and accountable, as they are your point of contact throughout the process. To verify their legitimacy, ask whether they're certified by the Federal Housing Administration (FHA) or the U.S. Department of Housing and Urban Development (HUD). Suppose you want to apply for a home equity conversion mortgage (HECM). It's a federally insured and regulated loan, and working with a HUD-approved lender is essential to ensure compliance with federal standards. You can ask them to present their license as proof of their credibility. Another factor to consider is how long they've worked with reverse mortgages. These loans are more complex than traditional ones, so it helps to know your broker has in-depth knowledge and extensive experience handling different reverse mortgage products. Once you've confirmed that your lender is legitimate and experienced, you can explore the loan's fine print. Instead of rushing through the numbers, you must focus on clarifying the following: How much equity will be accessible Types of fees involved (origination, closing, ongoing, etc.) Applicable interest rates and how they work in the loan Available payout options Any limitations once the loan has been closed Keep in mind that reverse mortgages aren't one-size-fits-all financial tools. Each element affects your long-term financial plans, from how much money you can get to how quickly your equity will be consumed. Inquiring about these details will help you prepare for potential additional costs and unexpected restrictions. All borrowers must keep up with specific responsibilities as homeowners when they sign up for a reverse mortgage. Take this opportunity to clarify what specific home maintenance tasks you must fulfill regularly and who pays property taxes and insurance. Like traditional types, reverse mortgages can default when borrowers fall behind their obligations and payments. It's also advisable to ask what other consequences may occur. Doing so will help you remember what to do once the mortgage closes, budget accordingly, and avoid potential risks. Counseling is mandatory when applying for reverse mortgages since they're more complex than conventional loans. For example, federally insured reverse loans are non-recourse loans, meaning borrowers will not owe more than their property's appraised value at the time of sale. However, the loan balance can sometimes exceed that value, and knowing your options for covering the excess amount can help you manage your finances responsibly. Counseling sessions are the best avenue to clarify such scenarios and any consumer protections involved. A good lender will encourage you to go through with the session and provide the necessary assistance and resources. It isn't merely a paperwork formality; it's your chance to understand the loan's terms and built-in safeguards and confirm whether the loan is right for you. While reverse loans provide financial assistance for senior homeowners to live quality lives, they can also affect your heirs and estate. It's essential to ask about loan repayment after you move out or pass away, what options your heirs have if they keep the house, and whether it has non-recourse protections. There are safeguards for heirs, but the conditions vary depending on their relationship to the borrower and (for spouses) eligibility as co-borrowers. So, don't hesitate to ask your loan officer about the relevant policies, any applicable non-recourse protections, and how they can affect your estate and long-term plans. Reverse loans can offer financial stability and peace of mind in your golden years only if you fully understand how they work, what they involve, and what they require. Take your time asking everything there is to know and anything unclear. By asking reverse mortgage brokers the right questions, you can make informed decisions, maximize your home equity, and protect your future. TIME BUSINESS NEWS
Time Out
04-06-2025
- Entertainment
- Time Out
This powerful photo exhibit shows the turmoil of Coney Island in the 1960s-70s
These days, Coney Island is known for its roller coasters, Mermaid Parade, and Hot Dog Eating Contest, but back in the 1960s and 1970s, it was a very different story. Instead, the Brooklyn neighborhood resembled "a war zone" between 1965–1975 amid ill-conceived government projects, as the Coney Island History Project explained. Now, a new exhibit of street photography from that era examines what life was like back then. Charles Denson grew up in the West End of Coney Island and began photographing his neighborhood as a teenager. His photos are now part of the exhibition "Coney Island Streets: 1965–1975," which you can visit for free all summer at the Coney Island History Project. The fee exhibit shows the effects of discriminatory policies that began back in 1938 when the federal government "redlined" Coney Island. Redlining targeted the area because of prejudice against immigrants, African Americans, and local residents who were predominantly of Jewish, Italian, and Irish ancestry, the Coney Island History Project explains. The flawed policies of the Federal Housing Administration made it nearly impossible for homeowners to obtain mortgages, loans, and insurance. Slumlords, arsonists, greedy developers, and block-busting took advantage of the situation, and quality of life deteriorated as the area became a poverty pocket. "I grew up to the sounds of fire engines and bulldozers as block after block of viable housing went up in flames or was reduced to rubble under the treads of heavy machinery. None of the structures in my photographs has survived," Denson said in a press release. Block after block of viable housing went up in flames or was reduced to rubble. The government's Urban Renewal program called for the demolition of 60 blocks of homes and businesses. Then, government funding for such projects ran out in 1974, leaving the Coney Island community with a debris field of burned out structures and closed businesses. "My photographs show how resilient the neighborhood proved to be as residents survived as best they could with what remained. During this 10-year period I photographed portraits of local residents, family-run businesses, and the dramatic day-to-day changes taking place in Coney Island," Denson added. My photographs show how resilient the neighborhood proved to be. After photographing his neighborhood as a teen, Denson eventually began his career in 1971 as a photographer for New York Magazine. Today, he is an author of several books about Coney Island and served as executive director of the nonprofit Coney Island History Project. See the exhibit for free at the Coney Island History Project exhibition center (3059 West 12th Street, next to the West 12th Street entrance to Deno's Wonder Wheel Park, just a few steps off the Boardwalk). It's open on Saturdays, Sundays and holidays through Labor Day, 1–7pm.
CNBC
20-05-2025
- Business
- CNBC
Longbridge Financial reverse mortgage review 2025
Founded in 2012, online lender Longbridge Financial is the third-largest provider of reverse mortgages in the U.S. As of February 2025, it's approved more than $94 million in loans. Longbridge stands out for its lower rates and robust digital presence, which includes a reverse mortgage calculator and an easy-to-use servicing portal. Longbridge is a particularly good option for high-value homes: The Longbridge Platinum offering a line of credit of up to $4 million. Apply for personalized rates HECM reverse, HECM for purchase, Platinum Mortgage (proprietary loan with larger limits and a low age requirement of over 55) No specific minimum equity listed, but generally 50% Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent online for personalized ratesHECM, HomeSafe Standard jumbo, HomeSafe Second second lien, EquityAvail Terms applyApply for personalized ratesHECM reverse, HECM for purchase, Platinum Mortgage (proprietary loan with larger limits and a low age requirement of over 55) Terms apply A reverse mortgage allows older homeowners to access cash by tapping into their home equity. Typically, the loan and any interest are not due until you move out of the house, stop using it as your primary residence or pass away. If you fail to keep up property taxes, homeowners insurance or household maintenance, however, the loan could come due early. Longbridge offers Home Equity Conversion Mortgages (HECMs) in all 50 states. Longbridge Platinum, a proprietary jumbo reverse mortgage, is available in about half the U.S. A HECM is the most common type of reverse mortgage, insured by the Federal Housing Administration and available to homeowners 62 or older. Borrowers must pay a mortgage insurance premium of 0.50% of the outstanding loan balance annually. Longbridge offers two types of HECM in all 50 states and Washington, D.C.: HECM Reverse Mortgage for homeowners who currently own their home and HECM for Purchase, for those buying a new home. Longbridge Platinum is a proprietary loan available in Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Idaho, Illinois, Louisiana, New Mexico, Michigan, Missouri, Nevada, New Jersey, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, Utah, Virginia and Washington state. Because they're not insured by the FHA, Longbridge Platinum loans are available to homeowners as young as 55 without the need for mortgage insurance premiums. In addition, the high loan limit makes it an option for homeowners with high-value homes or condos, who are usually ineligible for HECMs. These are the typical borrower requirements for Longbridge's reverse mortgages: Unlike most lenders, Longbridge only offers reverse mortgages — so its team is particularly knowledgeable on this product. Its website is full of useful information and has an easy-to-use customer portal and application process. Borrowers can call customer service weekdays to speak to a representative in English or Spanish, but Longbridge doesn't have weekend hours. Global credit rating agency DRBS Morningstar gave Longbridge an MOR RVO2, its second-highest rating for reverse mortgages, citing its experienced management team and underwriting staff, comprehensive approval and monitoring practices and "continued investments in technology to enhance efficiencies across the platform," among other factors. In addition, the Better Business Bureau awarded it an A+, its highest grade, based on transparency, truthful advertising, and its response to consumer complaints. Here's how Longbridge compares to two major players in the market. Both Longbridge and Finance of America focus exclusively focus on reverse mortgages and offer comparable products. But while Longbridge lends in every state, Finance of America doesn't offer its services in Alaska, Arizona, Delaware, Iowa, Illinois, Minnesota, Montana, North Dakota, New Jersey, Rhode Island or South Dakota. Apply online for personalized rates HECM, HomeSafe Standard jumbo, HomeSafe Second second lien, EquityAvail 50% Finance of America is the more prolific lender, however, responsible for 22% of reverse mortgage originations in 2024. Landing at No. 3, Longbridge accounted for 12.3% of the market. Mutual of Omaha and Longbridge both have excellent customer service ratings and a solid selection of reverse mortgage options. While reverse mortgages are only a small portion of Mutual of Omaha's overall business, it has a much larger footprint: The biggest reverse mortgage lender in the U.S., it approved 6,149 loans in 2024, accounting for nearly 23% of the market. And Mutual of Omaha offers existing customers up to $1,000 off closing costs. Apply for personalized rates HECM, HECM for purchase Jumbo, HomeSafe, reverse mortgage refinancing, 50% But while Longbridge has a robust online presence, Mutual of Omaha borrowers must work with a loan officer. Longbridge also offers a $500 closing cost discount for military members. A fully digital lender, Longbridge doesn't have any physical locations but you can apply online or over the phone at 855-523-4326. You'll need a photo ID, your Social Security number, the deed to your house, home loan statements, proof of your property tax and homeowners insurance payments and documents related to the home's maintenance. You'll also have to schedule a session with a HUD-approved housing counselor, who will walk you through the reverse mortgage process and help you see if it is the right decision for you. If you continue, you'll need a home appraisal before Longbridge starts the underwriting process, which can take a month or longer to complete before funds are approved. With the convenience of an online lender combined with low rates, great customer service and nationwide availability, Longbridge would be a great fit. If you want to work with your lender in person, however, you should look at other options. In addition, the proprietary Longbridge Platinum mortgage is only available in 24 states, Longbridge is highly rated by both the Better Business Bureau and by DBRS Morningstar. It's the third-largest reverse mortgage lender in the country. There are several risks involved in a reverse mortgage, including the fact that your loan can come due in full if you fail to pay homeowners insurance or property taxes or keep up with home maintenance. In addition, you could end up leaving your heirs with a complex financial situation to unravel. Yes, if you fail to pay homeowners insurance, property taxes or upkeep your home your reverse mortgage and all interest will come due. If you don't pay, you could face foreclosure. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and Select reviews mortgage products using a variety of criteria, including the types of loans offered, average rates, terms, fees, down payment options, availability, online experience and customer satisfaction. In addition, we incorporate findings from independent sources, including lender scores from the J.D. Power U.S. Mortgage Origination Satisfaction Study and ratings from the Better Business Bureau and DBRS Morningstar.
