|  |  |  | | | | | Reverse Mortgage Daily | | | | | | | | | | | | | | | | | | |  Reverse mortgage applications rose to the highest levels all year in September, up 39.1% from October according to a report from the Federal Housing Administration.
During September, FHA received 255,938 applications, with HECMs making up 13,478 and the rest being "forward" purchase and refis. The sharp increase was likely driven in the amount of money borrowers receive from FHA's reverse mortgage product being reduced starting Oct. 4th. Even with the dramatic increase, reverse mortgage applications for fiscal year 2010 were down 40.4%. In September, 5,966 HECM loans were insured, with 5,587 being traditional reverse mortgages and the remainder as refinance or purchase transactions. For the year,79,106 HECM loans were endorsed with a max claim amount of $21.1 billion. Of those loans, 72,855 were traditional reverse mortgages, 4,862 were refinanced HECM loans and 1,389 were HECM for purchase transactions. The agency said 31% of the HECM loans endorsed were adjustable rate, down 66% from the prior year.  | | | | | | | | | | | | | | | | | | | | | | | | |  Nursing home and assisted living rates rose significantly in 2010 according to the Market Survey of Long-Term Care Costs.
MetLife's annual market survey found that private room nursing home rates rose 4.6% to $229 per day or $83,585 per year, while assisted living rose 5.2% on average to $3,293 per month, or $39,516 per year. These increases come on top of increases from 2008 to 2009 when both nursing home and assisted living costs were up 3.3%. Costs for home health aides and adult day services were unchanged in the past year, remaining at an average price of $21 per hour, while adult day services costs are still $67 per day. The highest average daily rates for nursing homes continued to be in Alaska, where rates are now $687 for a private room and $610 for a semi-private room. Costs are lowest in Louisiana, outside the Baton Rouge and Shreveport Metropolitan Statistical Areas (MSA), at an average of $138 per day for a private room. For assisted living, the Washington, D.C. area had the highest average monthly base rate at $5,231, while Arkansas, outside of the Little Rock MSA, had the lowest average monthly rate of $2,073. “The cost of care in nursing homes and assisted living has been and continues to be high and, in the past year, the increases have even outpaced medical care inflation of about 3%,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. “As the population ages, there are more and more people among us who will need long-term care. While families continue to provide the lion’s share of care, paid care is commonly part of the equation and the costs can derail even the best financial plan. There is very good reason for individuals and families to look into savings plans, annuities and long-term care insurance to hedge the possibilities.” According to the U.S. Census Bureau, in 2009, 68% of nursing home residents were women, and only 16% of all residents were under the age of 65. The median age of residents was 83 years. Current estimates from the American Association of Homes and Services for the Aging indicate that nearly one million people live in approximately 39,500 assisted living residences in the U.S. The average age of an assisted living resident is 86.9 years old, and the median length of stay in assisted living is 29.3 months. View the full report here.  | | | | | | | | | | | | | | | | | | | | | | | | | WSFS Financial Corporation, the parent company of WSFS Bank, announced that Henrietta Belcher-Stack, Assistant Vice President of Reverse Mortgage, received the first Certified Reverse Mortgage Professional (CRMP) designation. The CRMP designation was created by an Independent Certification Committee comprising of members from the National Reverse Mortgage Lenders Association (NRMLA) that administer the program, while working in conjunction with Professional Testing, Inc. Each of the nine designees were required to have a minimum of two years of experience in the reverse mortgage business and close at least 50 loans; take 12 hours of continuing education courses, as well as NRMLA’s three-hour ethics course, pass a background check and sit through a three-hour exam. The certification is valid for three years, during which time designees must sit for an additional 12 hours of continuing education per year to be re-certified. “I congratulate Henri as an inaugural designee as she has demonstrated a deep understanding of the product and a dedication to continually use ethical lending practices with our Customers,” said Trish Kauker, Vice President, WSFS Reverse Mortgage. WSFS is the number one reverse mortgage lender in Delaware, endorsing 95 HECM loans YTD according to data from the Department of Housing and Urban Development. The company used to have a larger reverse mortgage footprint when it purchased 1st Reverse Financial Services, but decided to shut it down only a year later.  | | | | | | | | | |  | |  | |  |
