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Volume 10 - Number 18

September 1, 2017

Borrowers Warned on Use of HECMs to Delay SS Benefits

Working past age 62 is usually a less costly way to increase a seniorís Social Security benefit than borrowing a reverse mortgage, according to the Consumer Financial Protection Bureau. In a report published last week, the CFPB warned that a strategy touted by financial consultants to seniors Ė borrowing a reverse mortgage loan to get more SS benefits later Ė could result in significant costs that may erase gains from delaying SS benefits. The strategy would require older homeowners to borrow a reverse mortgage at age 62, the minimum age a person can begin collecting SS benefits, in order to delay claiming such benefits. This means retirees would use the proceeds from a reverse mortgage to replace the money they would otherwise receive from SS in the years between 62 up to their full benefit age of 66 (for those born before 1960) and 67 (for those born after 1960), or their maximum ...

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With mortgage production down noticeably this year from 2017, how many lenders might disappear via M&A or failure during the next 12 months?

10% or less. It’s not that bad out there.
11% to 25%. It’s a challenging market.
25% to 40%. It’s going to be very ugly.
No opinion.

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