LTC Financial Partners L.L.C. has formed a unit that will provide reverse mortgages for Americans 62 and up.
LTC Financial, Kirkland, Wash., says the new affiliate, Reverse Mortgage Direct L.L.C., will give it the ability to help more seniors pay for care.
Reverse mortgages can be especially helpful for seniors who cannot qualify for LTC insurance, and for seniors living on a fixed income who lost money in the stock market, according to Josh Stephens, president of the RMD unit.
The kinds of reverse mortgages that the unit will sell are home equity conversion mortgages that are insured by the Federal Housing Administration.
"The HECM loan is both FHA-insured and non-recourse," Stephens says "That means that if the sales proceeds are insufficient to pay the amount owed, FHA will pay the lender the shortfall, and the homeowner will owe nothing more to the lender or FHA."
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