FLORIDA ASSOCIATION OF MORTGAGE BROKERS OFFERS CONSUMERS TIPS TO AVOID ABUSIVE LENDING PRACTICES

Tallahassee, FL – December 17, 2008 – Deciding to purchase a home is one of the most significant decisions that a consumer will ever make.  It is crucial that the consumer work with a licensed mortgage broker, loan originator or other mortgage professional during the home buying process. While most mortgage industry professionals are honest and ethical, it is still important for consumers to be aware of the following tips as they prepare to enter the largest financial transaction of their lives.   By becoming knowledgeable about the mortgage process, they can protect their financial investment and find a loan that will best serve their needs.

The Florida Association of Mortgage Brokers (FAMB) offers the following tips to avoid abusive lending practices during the home buying process:

I am sure that at one time or another we have all seen a hearse traveling down the road. But, have you ever seen a hearse pulling a U-haul trailer?  Do you know the reason why not? Because you can’t take it with you. That’s why a reverse mortgage is a perfect solution to a senior home owner to supplement their retirement income.

The benefits of a reverse mortgage are:

• Independence – You continue to own and live in your home
• Liquidity – Receive monthly payments instead of making them
• Simplicity – No income, credit report, and employment requirements needed to qualify2
• Choice – You may receive funds as a lump sum, in monthly installments, as a line of credit, or as an upfront sum plus monthly allotments
• Security – Does not affect Social Security, pension or Medicare benefits3
• Ownership – Your heirs can keep the property once the reverse mortgage is paid in full
• Freedom – Please ask your reverse mortgage consultant about when any payment may be due