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With millions of Americans now at or approaching retirement age, the problems of failed pensions, inadequate social security, and escalating health insurance costs are threatening to cause a massive increase in the number of seniors who will be struggling to stay financially afloat during their golden years. Many of these people have turned to reverse mortgages as ways to supplement their retirement incomes, and if you are thinking of joining their ranks, you need to be sure your reverse mortgage is handled by a reputable lender.

Wherever there is money, there are people trying to steal it, and the reverse mortgage market is no different. It’s far from unusual for fraudulent reverse mortgage companies to demand huge up front application fees from their customers, all the time knowing that they have no intention of accepting them as borrowers.

The NRMLA

One sign that you might be dealing with shady reverse mortgage companies is if you are being asked to pay a large amount, say 5%, of the amount you expect to borrow, as an application fee. If you find yourself in that position, the first thing you should do is research the backgrounds of the reverse mortgage companies in question with the National Reverse Mortgage Lenders Association.

The NRMLA has been working to protect the interests of reverse mortgage applicants since 1997, and its website identifies approved reverse mortgage companies according to their states. The Department of Housing and Urban Development, or HUD, also has a website with information on various reverse mortgage companies. Both sites offer their resources at no charge.

The NRMLA website, in particular, is a terrific resource for those seeking information on reverse mortgage companies. It also gives you all the details involved in the process of applying for your reverse mortgage, and even offers a calculator which will tell you, based on the current market value of your home, how much money a reverse mortgage can bring your way.

The Code Of Conduct

Even better, the NRMLA has established a Code of Conduct which all its member reverse mortgage companies are required to honor. The Code of Conduct is written to protect the specific needs of older homeowners, and to keep member lenders from trying to use the applicants’ lack of knowledge concerning reverse mortgages against them

The NRMLA has also drawn up a Code of Conduct to which any reverse mortgage companies must agree before being listed on the NMRLA site as an approved lender. Their Code of Conduct requires that approved reverse mortgage companies be sensitive to the unique needs of senior citizens, and do nothing to take advantage of their unfamiliarity with the reverse mortgage process.

When you’ve spent some time looking over your financial options for retirement, and have become comfortable with the idea of a reverse mortgage, head for the NRMLA site to look for the approved reverse mortgage companies in your area. When you have settled on the lenders nearest your home, use the contact information provided on the site to set up in-person appointments. And if you can find people who have already been through the reverse mortgage process, and will share their experiences with you, so much the better!

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The National Reverse Mortgage Lenders Association was established in 1997 to provide a variety for services for both those wishing to take advantage of reverse mortgages on their homes and lenders wishing to finance reverse mortgages.

The Reverse Mortgage Association has an educational program to aid senior citizens who have decided to take out a reverse mortgage as a way to remain financially independent The Reverse Mortgage Association has also established a Code of Conduct to which it expects reverse mortgage lenders to adhere in their dealings with senior citizens; it also has a training program in which reverse mortgage lenders are encouraged to participate.

How Reverse Mortgages Work

The Reverse Mortgage Association oversees a program in which homeowners sixty-two and older can turn a percentage of their home equity into non-taxable income while still retaining title to their homes. They are freed of the burden of a monthly mortgage payment, which they would otherwise have to accept by taking out a traditional home equity loan. The Reverse Mortgage Association oversees the activities of lenders who make the reverse mortgage payments to the senior homeowners.

A reverse mortgage does not have to be paid back until the home is no longer the borrowers’ principal residence, the borrowers pass way, the home is sold, or the borrowers leave it for good. And it the home is sold for an amount greater than the outstanding balance on the reverse mortgage, the borrowers, or their estates, can keep the difference. For more info see http://www.i-reversemortgages.com/Reverse_Mortgage_Information/ on Reverse Mortgage Information.

The Future Of Reverse Mortgages

With the Baby Boomer generation now entering their 60′s, the number of reverse mortgage loans is expected to increase dramatically. Because of that, it is more important than ever those senior citizens can trust the integrity of their lenders. The Reverse Mortgage Association has the job of verifying the quality and professionalism of reverse mortgage lenders and assuring that they will be an asset to the communities in which they do business.

The Reverse Mortgage Association holds a series of annual conferences for its member lenders, so that they can remain educated in the latest reverse mortgage issues, products, and borrower concerns.

For seniors who have been caught in the trap of dwindling IRA values, disappearing pensions, and rising health insurance costs, the idea of trying to survive in retirement on Social Security and little else may be devastating. A reverse home mortgage, from a lender who honors the Code of Conduct established by the Reverse Home Mortgage Association, could give them the secure retirement for which they are longing.

You can also find more info on Reverse Mortgage Lender and Reverse Mortgage Loans.