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John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

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Researchers: Retirement a 'Wobbly Three-Legged Stool'

September 27, 2016 2:09 am


Americans expect to encounter instability in retirement, as a “wobbly three-legged stool”—employer-sponsored benefits, personal savings and Social Security—teeters in the balance, according to recent research out of the Transamerica Center for Retirement Studies® (TCRS).

“Today's workers are grappling with retirement security and challenged by the wobbly three-legged stool comprising Social Security, employer-sponsored retirement benefits and personal savings,” explains Catherine Collinson, president of TCRS. “Although the Great Recession ended years ago, millions of Americans are still regaining their financial footing. As each year passes, people’s fears about our current retirement system come more sharply into focus.”

Seventy-one percent of Americans surveyed by TCRS expressed concern that Social Security will not be available when they are ready to retire, and just 16 percent “strongly” agreed that they are building a sustainable nest egg. Thirty-eight percent of those surveyed reported expecting to continue to work in retirement, while 15 percent reported that work will be their primary source of income.

“Amid retirement savings shortfalls, American workers are attempting to prop up our system’s three-legged stool by adding a fourth leg: working during retirement," Collinson says.

“Baby boomers’ vision can only be achieved if they are proactive about staying employable and if employment opportunities are available to them. As part of their retirement planning, baby boomers should create a ‘Plan B’ if retirement happens unexpectedly due to job loss, health issues, or other intervening circumstances,” adds Collinson.

Of the baby boomers surveyed by TCRS, 78 percent reported expecting retirement accounts (e.g., 401(k)s, 403(b)s, IRAs) to be their primary source of income in retirement; 34 percent are expecting Social Security to be the primary source; and 33 percent are expecting a pension plan to be the primary source.

Source: Transamerica Center for Retirement Studies® (TCRS)
 

Published with permission from RISMedia.


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FHFA Tosses Refinancing Lifeline to High-LTV Borrowers

September 27, 2016 2:09 am


Mortgage borrowers with high loan-to-value (LTV) ratios now have more options when it comes to refinancing.

The offering, recently announced by the Federal Housing Finance Agency (FHFA) and to be implemented by Fannie Mae and Freddie Mac (“the Enterprises”), will provide much-needed liquidity to borrowers current on their mortgage but unable to refinance through conventional programs because their LTV ratio exceeds the Enterprises’ maximum limits.

FHFA Director Mel Watt says providing a sustainable refinance opportunity for high-LTV borrowers who have demonstrated responsibility by remaining current on their mortgage makes financial sense, both for borrowers and for the Enterprises.

In order to qualify for the new offering, borrowers:

• Must not have missed any mortgage payments in the previous six months;
• Must not have missed more than one payment in the previous 12 months;
• Must have a source of income; and
• Must receive a benefit from the refinance, such as a reduction in their monthly mortgage payment.

Full details will be available in the coming months through the Enterprises, but the offering will make use of the lessons learned from the Home Affordable Refinance Program (HARP) and its streamlined approach to refinancing. The new offering is more targeted than HARP, but as with HARP, eligible borrowers are not subject to a minimum credit score, there is no maximum debt-to-income ratio or maximum LTV, and an appraisal often will not be required. Unlike HARP, however, there is no eligibility cut-off date. Borrowers with existing HARP loans are not eligible for the new offering unless they have refinanced out of HARP using one of the Enterprises traditional refinance products.

The new high-LTV refinance offering will be available to borrowers until October 2017.  For more information, visit HARP.gov, follow @FHFA on Twitter, LinkedIn and YouTube, or consult with a real estate professional.
 

Published with permission from RISMedia.


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