Richmond, VA – Live Well Financial, a veteran in the mortgage industry, advocates the use of the Federal Housing Administration’s guidance on financially assessing seniors looking to qualify for reverse mortgages.
The FHA’s information and sample documents were provided in early 2015 to guide mortgage-issuing institutions. Live Well Financial implemented the new Financial Assessment in April. The subsequent 5 months have brought a streamlined way within the company for evaluating potential borrowers.
The Financial Assessment has brought about changes within the industry that ask institutions to more thoroughly evaluate a borrower’s ability to meet the financial obligations of taking on a home equity conversion mortgage.
“Our hope, at Live Well Financial, is that the adoption of Financial Assessment will be an inflection point for the industry,” said Live Well Chairman & CEO Michael Hild. “We believe this change will not only decrease defaults, but will also reinforce with borrowers just how important it is to continue paying their taxes and insurance after closing.”
To help seniors who are not able to meet the financial obligations of the loan, a Life Expectancy Set Aside is used. This allocates funds to be used for items such as property taxes, flood insurance, etc. thus ensuring the borrower can meet all their financial responsibilities.
About Live Well Financial
Established in 2005, Live Well Financial has extended its footprint across the country from its corporate headquarters in Richmond, Virginia. The company’s nationwide presence has helped it become one of a select few companies that has the expertise to operate as a specialized lender for conventional, FHA, and reverse mortgages.
Live Well Financial’s management team brings a wealth of experience in traditional banking, insurance, mortgage, and consumer financial services. The company’s strength and diversity of experience, along with a dedication to the close integration of marketing, operations, information technology, and structured finance give Live Well Financial a long-term competitive advantage in the industry.