The Housing and Economic Recovery Act of 2008 made changes to reverse mortgages effective October 1, 2008, including higher borrowing limits and protections from aggressive marketing. A homeowner who is at least 62 years old can use a reverse mortgage hometo access home equity to obtain a loan that does not have to be repaid until the homeowner moves, sells, or dies. The national limit on the amount a homeowner can borrow is increased from $200,160 to $417,000 ($625,000 in areas with high housing costs). The amount that can be borrowed depends on the home’s value and location, interest rates and the borrower’s age. The new lawprotectsseniors from high fees and aggressive marketing. Fees are capped at two percent of the first $200,000 borrowed and one percent on the balance, with a maximum of $6,000. Lenders are prevented from requiring borrowers to purchaseinsurance, annuities, or other products as a condition to obtaining a reverse mortgage. Lenders are prohibited from working with other professionals who attempt to sell financial products to seniors aspart of the lending process.
Friedman & Ranzenhofer
The Law Offices of Friedman & Ranzenhofer, PC are committed to your legal survival since 1955. Our Buffalo Lawyers have over 85 years of combined experience. Our experienced Buffalo Attorneys can assist with a broad variety of legal skills needed in today’s complex world. The firm has nine law offices. Besides the Akron office, we have offices in Buffalo, Batavia, Clarence - Williamsville area, Niagara Falls, Orchard Park, Medina, Lockport and Rochester. If you are in need of an experienced attorney, contact us for dedicated representation.