Press Releases
Golden Gateway Financial Outlines Benefits of Housing and Economic Recovery Act of 2008 for America's Senior Citizens
Senior citizens resource applauds work of National Reverse Mortgage Lenders Association and AARP
July 28, 2008 – Oakland, Calif. – The Housing and Economic Recovery Act of 2008 is historic and ambitious legislation that the President of the United States is expected to sign into law as early as today.
While this legislation is designed to aid homeowners in distress and to support Fannie Mae and Freddie Mac, it also includes important changes that will dramatically affect senior citizens through changes to the standard Federal Housing Administration HECM reverse mortgage product.
Portions of the Housing and Economic Recovery Act of 2008 that directly impact senior citizens and reverse mortgages include:
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A single national reverse mortgage lending limit of up to $625,000 (pending congressional clarification)
- Benefit to seniors: Expands the amount of equity available through an FHA insured reverse mortgage
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Home purchase using a reverse mortgage
- Benefit to seniors: Provides more ways to leverage a reverse mortgage, including using the proceeds from the sale of one property to downsize into another
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Co-op provisions
- Benefit to seniors: Allows seniors to stay in their own home and community, especially in urban areas
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Fees capped at two percent on the initial $200,000 loan amount and one percent on the balance thereafter with a cap of $6,000
- Benefit to seniors: Reduces total cost of a reverse mortgage
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Prohibitions on requiring the purchase of annuities and other financial products
- Benefit to seniors: Protects senior citizens from predatory individuals
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Restrictions on cross-selling financial products
- Benefit to seniors: Protects senior citizens from predatory individuals
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Requirements on counseling protocols, funding and practices
- Benefit to seniors: Helps seniors to become more educated and empowered borrowers
“This legislation is a solid first step in alleviating the mounting economic pressures on senior citizens,
” said Eric Bachman, founder and CEO of Golden Gateway Financial. “These actions will provide borrowers with much greater flexibility in leveraging the equity that is rightfully theirs, but we must continue to find even more aggressive and innovative ways to assist senior citizens.
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Golden Gateway Financial is the Web's most comprehensive financial resource for seniors, baby boomers and impending retirees. The company provides information and award-winning tools to help senior citizens assess their financial health at retirement. For those seeking a reverse mortgage, Golden Gateway Financial is the premiere reverse mortgages resource, providing seniors with a private and lender agnostic way to compare, choose and get the right reverse mortgage for their unique situation.
For more information about this study or to access Golden Gateway Financial's industry leading suite of online retirement assessment tools and resources, please visit www.goldengateway.com.
About Golden Gateway Financial
Golden Gateway Financial (www.goldengateway.com), located in Oakland, California, is a comprehensive resource for senior citizens, baby boomers and soon-to-be retirees to assess their financial health at retirement. Through a unique set of online tools and clear and unbiased communication, the company helps individuals address "The Great American Retirement Dilemma." The tools enable users to better assess the security of their nest egg and to make intelligent choices to fully enjoy what should be the best years of their lives. The company also operates the industry's premiere reverse mortgage service with a proprietary reverse mortgage calculator and a team of trained counselors to help seniors better understand the product, evaluate whether it is right for them, and identify their ideal lending partner.
Press Inquiries:
Michael Azzano
Cosmo Public Relations
415-596-1978
