In speaking with the President of the HOA, he assured me there was no way this property was ever approved for FHA/HUD financing, nor would it ever be. My Mother is now 86 years old and should I survive her, I will be forced to live on the streets, homeless and ill. I have since been diagnosed with terminal Cancer for which I am receiving treatment. I am one of the daughters who has resided with my Mother since the passing of my Father in 2013 and subsidizing her loss of his SSA benefits at that time, to date. In fact, there was no mention of their surviving children mentioned anywhere within the contract stating that upon the death of the surviving spouse, the property shall be relinquished to the bank and any tenants residing within the residence will have 30 days to vacate the property. I have read the contract originating from Financial Freedom, which is quite disturbing, in that there are no provisions for the property to go to any beneficiary such as my Sister or myself. I am in desperate need of obtaining documentation treating to a Reverse Mortgage my parents opted to take advantage of in 2006. I am not accepting this answer from Fairway. is telling me I must make the beneficiaries owners. I have a trustee and myself and my sister listed privately as beneficiaries. after four or five months now Fairway is stating that I cannot have beneficiaries to my Trust. Received months ago, the six-month certificate that I completed the course about being told all about the Reverse Mortgages. Went through the now telephone information study from the state agency that provides pro and con information about the Reverse Mortgage Programs. Another question: I am now trying to deal with a Reverse Mortgage Company called Fairway in Massachusetts. It was stated that amount was never meant to be refunded even if the property was sold. I asked for this amount to be paid back to myself and I was denied. * There was almost a five thousand dollar hold back for some sort of servicing. I ended up selling the property and the proceeds after paying what was due was returned to me. Some five years ago I had a Financial Freedom Reverse Mortgage and things seemed to be fine. “The wholesale reverse mortgage origination channel represents the majority of Financial Freedom’s origination business and is the only wholesale origination channel within OneWest.” “After careful consideration, we have decided to exit the wholesale reverse mortgage origination business based on the regulatory environment and the desire to focus on the bank’s core businesses,” wrote CEO Michelle Minier in a letter to the company’s business partners. Shortly thereafter, in 2011, the company announced it would be shutting down all reverse mortgage channels, citing the regulatory environment and a need to focus on OneWest bank’s “core” operations. The company’s reverse mortgage volume fell substantially after 2007, though it was still the top wholesale lender in 2009. The Federal Reserve publishes CMT yields.Why did Financial Freedom stop offering reverse mortgages?įinancial Freedom has a slightly different story given its change in ownership and the downfall of its parent company, IndyMac, following the market crash of 2007 and subsequent housing market decline. CMT yields are read directly from the Treasury’s daily yield curve, derived from actual yields on Treasury Securities.īecause Treasury instruments have a set maturity date and are issued according to need, it is very rare for the maturity of Treasury security to align with an exact period, e.g., Twelve Months, so interpolation ( weighted averaging) is used to determine the Constant Maturity yields. Treasury (CMT) – Constant Maturity TreasuryĬMT rates are designed to reflect the United States Treasury’s cost of borrowing. By its very definition, SOFR is an overnight rate, so creating longer-term SOFR rates has proved problematic. The US Federal Reserve’s Alternative Reference Rates Committee (ARRC) selected SOFR as the replacement for LIBOR in June 2017. It is derived from actual activity in the Treasuries repurchase (Repo) market, where banks and investors borrow or loan Treasury securities – hundreds of billions of dollars are traded daily. This methodology allowed for manipulation of the LIBOR rates by large financial institutions, and as a result, regulators have mandated the phase-out of LIBOR.Īs the name indicates, this measures the cost of borrowing cash overnight, secured by Treasuries as collateral. They were not necessarily based on actual transactions. LIBOR rates were determined by a survey of panel banks conducted by the British Bankers Association. There are different LIBOR rates for different borrowing periods and different currencies. This is a measure of the cost to Banks of borrowing cash from each other for relatively short periods.
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