Lori Ioannou

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179 appearances 3 recordings 1 series first heard Mar 2022 last heard Feb 2025

Lori Ioannou’s voice in public audio — every appearance, attributed to the second.

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WSJ Your Money Briefing · Reverse Mortgages: Have They Beaten Their Bad Rep? · 6 Jun 2022 podcast

It offers protection from default if the value of the home declines to less than the loan amount.

The Federal Housing Authority covers any shortfalls between the final loan balance and the net proceeds from the sale.

So seniors do not run the risk of being underwater on the loan if the value of the home drops.

Let's say you took out a $500,000 reverse mortgage and the value of your home dropped to $450,000.

That would mean that you are out $50,000 of that loan.

But with this insurance,

If the home values were to fall, you know, you don't have any problems.

And this is very, very important.

And provisions that secure a surviving spouse's right to remain in the home after the borrower's death.

Under HUD, they also even require that anyone interested in getting a reverse mortgage called a HECM, which is these are these federally insured reverse mortgages.

that they actually attend an education course.

So they really understand how these products work.

And so they feel like they're fully equipped as consumers to know the pros and the cons of reverse mortgages.

That's a great question.

I'm glad you asked that.

Believe it or not, you might think they're taxed, but the funds dispersed aren't taxed since they are considered a loan advance, unlike other retirement income, such as distributions from an IRA or 401k.

Well, they can be very, very significant.

They can be considered a huge downside.

These would include origination fees, which are capped at $6,000, interest and service fees, a HUD counseling fee, appraisal fees, and third-party closing costs.

There is also upfront mortgage insurance, which is 2% of the appraised value of the home,

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