New Federal Program Will Effect San Diego Reverse Mortgages

Online, September 18, 2013 (Newswire.com) - Sweeping changes to the Federal Reverse Mortgage program, known as a Home Equity Conversion Mortgage ("HECM"), is a welcome change, says one San Diego based firm. Legacy Reverse Mortgage, a reverse mortgage firm in San Diego, California is optimistic that the new rules governing the program mean that the program is here to stay.

"The bottom line is that the changes are intended to make this program stronger, both from a federal financial standpoint, as well as, for the borrower. The program will be safer going forward with less risk of consumer default," says Todd Ausherman, Chief Operating Officer of Legacy Reverse Mortgage San Diego. "In the new climate, reverse mortgage borrowers will really need to have a thorough understanding of the program. We (Legacy Reverse Mortgage), take immense pride in making sure our clients understand all of the nuances of how a reverse mortgage works for their personal financial planning or personal retirement planning. The 'one-size fits all' way of doing business will finally be a thing of the past. These changes benefit the public at large as well as future reverse mortgage borrowers."

The changes that are coming to the program include a limitation on how received funds during the first year can be utilized. Loan costs will vary depending on the usage of the mortgage monies, and will combine the current two versions of the HECM (Standard and Saver) into one. All of these changes will take effect in San Diego, September 30, 2013.

"It comes down to education," says Mr. Ausherman. "An HECM reverse mortgage has amazing capabilities of enhancing retirement. It has always astonished me that I see so few prospective reverse mortgage borrowers here (San Diego), whom truly understand all of the options that exist to them. We(Legacy Reverse Mortgage) look forward to these changes. By making it clearer to the public that this should not be an emergency, last-resort program. A reverse mortgage is a long-term financial planning and retirement tool that should be explored by everyone who qualifies. A lot of eyes will open as folks realize the unfortunate stigma that this program has been stuck with is rooted in simple misunderstanding."

Legacy Reverse Mortgage serves Southern California at it's convenient San Diego office:
11526 Sorrento Valley Rd. Suite B3
San Diego, CA 92121

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