Lenders and brokers both perform a variety of loan origination tasks, which include finding, counseling and qualifying borrowers, taking applications, checking credit, and verifying employment and assets. But the lender is the one who must approve the deal and disburse the money to the borrower. Mortgage brokers usually are not authorized to provide final loan approval, nor do they disburse money. Suppose that at closing, the lender lends the broker enough money for the broker to fund the loan in his own name, then 10 minutes later when the transaction is completed, the broker sells the loan to the lender. Would this convert the broker into a lender? If we define “lender” as the entity who disburses funds to the borrower and receives back a note and mortgage, then the answer has to be “yes.”

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DEAR BRUCE: I wish you would give us a general talk about reverse mortgages. I am not sure I trust the advice I receive from someone who is selling them. Are there special criteria that set candidates apart? — M.T, via e-mail

Reverse mortgages have become hot items on the financial planning market. A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to the homeowner through an established line of credit. Unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer uses the home as their principal residence, sells the home or dies.

The three basic types of reverse mortgages are single purpose reverse mortgages, which are offered by some state and local government agencies and nonprofit organizations; federally insured reverse mortgages, which are known as Home Equity Conversion Mortgages, and are backed by the U.S. Department of Housing and Urban Development; and proprietary reverse mortgages, which are private loans that are backed by the companies that develop them. To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration requires that the borrower is a homeowner, 62 years of age or older; owns the home outright, or has a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. (more…)

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Many retirees view their homes as a major source of funding their retirement nest eggs . There are two primary ways of using one’s home for this purpose, either through a reverse mortgage program, or by selling the house.

According to Bankrate.com, credit scores heavily impact home and auto insurance coverage and rates. With a poor score, you could be denied insurance outright, which is especially tough in cases where the law requires insurance. People with bad credit are assigned to a higher risk group, as insurance companies are finding a correlation between bad credit and a higher number of claims. The logic being that fiscally irresponsible people might turn to insurance as source of revenue, turn to insurance too frequently, pad claims or make dishonest claims.

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Reverse mortgage is a stream of loan payments against the homeowner’s net equity stake in the property. Mumbai June 25 The concept of reverse mortgage for homes will take a few years to gain acceptance in the country, feel leading bankers.

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GLG Partners LP, one of Europe’s largest hedge funds, said Monday it is selling itself in a $3.4 billion reverse takeover (2.5 billion euros) that will give it access to the U.S. stock market.