Allied Aids the Elderly MortgagePress.comAllied Home Mortgage Capital Corporation, Home Equity Conversion Mortgages, Jim Hodge
Fiscal Year 2002 saw a rising number of senior citizens reaching
financial security, due in part to help from Allied Home Mortgage Capital
Corporation. In figures recently released by the U.S.
Department of Housing and Urban Development, Allied was listed as a
top originator of FHA Home Equity Conversion Mortgages (HECMs),
better known as reverse mortgages, which are special types of loans
used by senior citizens to convert the equity in their homes into
cash.
Allied ranked sixth in HUDs list of the top ten retail loan
originators. In the fiscal year ending Sept. 30, nationwide lenders
originated a record 13,049 reverse mortgages during the most recent
federal fiscal year, nearly doubling the old mark set in 1999.
Furthermore, this year's figure represents a 68-percent increase
over 2001's figure, covering more than 20 percent of all HECMs made
since the product was first offered in 1989.
"Reverse mortgages really help our senior citizen community find
the economic confidence they are searching for in their later
years," says Allied president Jim Hodge. To know that we are one of
the top originators of these type of loans makes us extremely
happy.
The reverse mortgage is aptly named, since the payment stream is
literally reversed. Instead of the borrower making monthly payments
to the lender, as with a regular first mortgage or home equity
loan, the lender actually makes payments to the borrower. And,
although a reverse mortgage loan is still outstanding, the borrower
keeps their home and maintains ownership of the title.
To qualify for a reverse mortgage, one must be at least
62-years-of-age, and own their home or condominium outright. There
are no income or medical requirements, and a person may be eligible
even if they still owe money on a first or second mortgage.
