‘More reverse mortgage servicing protections needed’

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The NCLC recommends the CFPB & the FHA create these reverse mortgage servicing protections

After several years of servicing issues for both borrowers and their heirs reverse mortgage originators and lenders alike welcomed the news in March 2022 that Celink had been awarded the servicing of HECM loans held in assignment by the Federal Housing Administration. However, a history of previous servicing shortfalls from numerous servicers has led some to call for increased oversight and protections to prevent unnecessary foreclosures of HECM loans.

On February 6th the National Consumer Law Center published an article by Sarah Bolling Mancini entitled, “Unmet Promise: Reverse Mortgage Servicing Challenges and How to Preserve Housing Stability for Older Adults”. Mancini outlines several servicing shortfalls that may have led to avoidable foreclosures. 

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HECM Refis are not growing our market

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HECM Refis are not growing our market

RMI’s John Lunde told RMD while HECM endorsements are strong our industry’s production is not quite as robust as one may believe when considering HECM-to-HECM refinances. 

Other Stories:

  • Will there be a wave or a trickle of evictions?

  • Homeowners are hurting but property tax panel looks elsewhere

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As moratoriums end seniors stand to lose the most

As moratoriums end, seniors stand to lose the most

A federal ban on evictions expired Saturday, July 31st. Consequently millions of Americans are facing the specter of housing insecurity or homelessness.  The financial protections put in place for millions of households throughout the pandemic including foreclosure moratoriums, stimulus checks, and unemployment benefit bonuses only delayed the inevitable for some.

While the federal government has extended eviction and foreclosure protections multiple times, it’s unlikely we will see another intervention. However, as we are recording today’s show we should note that anything can happen. Case in point- the rapid increase of new cases of the Covid Delta Variant led the CDC to reverse its recent mask guidance for vaccinated individuals. While Covid hospitalizations and deaths had dropped precipitously the government could justify further stimulus and housing protections due to the potential economic impact of the Delta variant strain.

While eviction moratoriums are scheduled to end on July 31st struggling homeowners have until…

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Foreclosure Moratoriums Ending

Millions face foreclosure

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When it comes to pending foreclosures for mortgages in forbearance younger Americans are not alone. Many older homeowners are facing the specter of losing their homes.

Foreclosure moratoriums are ending

A Harvard University housing report warns that over 2 million American homeowners who have delinquent mortgages are at risk of foreclosure. As the Covid-19 pandemic ebbs a new contagion of housing insecurity is preparing to spread creating a wave of evictions.

Over 7 million American homeowners were placed under the protection of a foreclosure moratorium as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES) last spring. The Biden administration extended the moratorium as millions seek a way to modify their loans or find a way to save their homes.

Numerous deadlines have passed and been extended by both federal, state, and local governments. This myriad of ever-changing expiration dates has left many confused and uncertain. However, one thing is clear. The federal government is determined to prevent a wave of foreclosures and evictions as evidenced by a foreclosure moratorium on all federally-insured mortgages until July 31st, 2021.

However, Financial Reg News reports that the Federal Housing Finance Agency (FHFA) is offering borrowers protections after moratoriums end. “FHFA officials announced that Fannie Mae and Freddie Mac servicers would not be permitted to make the first notice or filing for foreclosure that would be prohibited by the Consumer Financial Protection Bureau’s (CFPB) Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X Final Rule before the CFPB rule takes effect.” This rule prevents any move to foreclose before December 31, 2021.

When it comes to senior homeowners facing potential foreclosure there’s little if any data. However, it’s no leap of logic to conclude that there are thousands, perhaps tens of thousands of older homeowners who don’t know how to save their homes. And yes, surprisingly, some may not be aware that a reverse mortgage could in fact save the very roof over their head.