Affordable Financial Services Comments on the Reverse Mortgage Stabilization Act

HUNTINGTON, N.Y. - Aug. 2, 2013 - PRLog -- (Huntington, NY) — Commenting on the recently approved Reverse Mortgage Stabilization Act, Brian Leibowitz, CEO/Owner, Affordable Financial Services, says the new changes will help seniors allow them to tap into their home equity while making sure they can pay it back by having financial safeguards for them in place.

Both chambers of Congress recently approved legislation that would give the Secretary of the U.S. Department of Housing and Urban Development (HUD) the authority make changes that will better meet the needs of borrowers and help match loans with potential borrowers more appropriately and to protect the solvency of the Home Equity Conversion Mortgage (HECM) program.

The Act would allow HUD to determine if the applicants are capable enough to meet the responsibilities of the loan. Other changes include the restrictions on the amount of proceeds that can be drawn initially, in order to prolong the useful life of the assets; making the set-aside of funds for tax and insurance payments mandatory to ensure borrowers can meet their obligations; and including all borrower spouses on loans, regardless of the spouse’s age, as protection for either spouse against losing the home upon one another’s passing.

“Many seniors rely on reverse mortgages to pay for emergency medical care or much-needed home repairs,” Mr. Leibowitz says. “ These proposals by HUD will not only allow seniors access to the money they need, but they will help seniors to borrow responsibly and, at the same time, keep their own financial resources intact.”

For more information, call 1-888-500-0282 or visit http://www.affordable-financialservices.com/.