Does the HECM provide a long term solution or a short term fix to borrowers? That’s the question HUD officials will ponder as the shape the upcoming Financial Assessment
Continue readingChopped? Standard Fixed Rate Days Are Numbered
It appears the super sweet fine grain sugar of the standard fixed rate is flying off the shelves and it’s return is uncertain. Brokers, lenders and loan officers are now faced with selling a new product mix and perhaps focusing on a new breed of borrowers.
Continue readingOvercoming Worry with Focus
“Worry never robs tomorrow of its sorrow, it only saps today of its joy.” said Leo Buscaglia. So why the quote? FHA Deputy Assistant Secretary Charles Coulter said in a session that they are considering substantial changes in quote- short oder-. The financial assessment is one, the other and more disturbing for some attendees was the fixed rate HECM. HUD is concerned about the vast majority of borrowers taking a full draw for the fixed rate…
Continue readingShaping our future: Financial Assessment
Some claim it has created confusion in the marketplace. Others fear it will exclude up to 30% of borrowers. As the debate continues, the Financial Assessment is the biggest game-changer our industry faces, and our future borrowers
Continue readingHere & Gone: Top lender MetLife drops financial assessment
It was groundbreaking when MetLife began using the Financial Assessment but now they have stopped using it altogether. Learn more in this week’s video.
Continue readingNo longer on the list: Industry Leader Update
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Non-FHA Approved Brokers find themselves out in the cold when it comes to FHA’s list of HECM approved lenders.
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Insurance fund for RMs looking healthy: Industry Leader Update
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HUD Secretary says fund backing reverse mortgages looks good…
The lackluster condition of of the Mutual Mortgage Insurance fund in fiscal year 2010 lead to some sweeping changes which included a reduction of principal limit factors, an increase of ongoing FHA insurance and the introduction of the Saver.
What changes can we anticipate when the insurance fund’s actuarial report is released this November if any? The housing market aside there are factors that have improved the overall financial health of this fund which backs federally-insured reverse mortgages.
Road block: Lack of funds for HUD Counseling: Industry Leader Update
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Lack of funding for HUD counseling creating a road block for those who need it the most
As we enjoyed our weekend October 1st came and went marking the beginning of the fiscal year 2012 and more importantly the date when funding from the government for mandated HUD counseling stops. This is creating delays in scheduling counseling and even worse may prevent lower income homeowners without the money for upfront counseling fees from moving forward. Either way you slice it, this is hurting the potential borrower the worst.
Ironically when the government created the HECM (Home Equity Conversion Mortgage) program, counseling was a built in requirement. Why does congress fail to fund a requirement for a federal program they created in the first place? Politics aside it appears we may have some hope of seeing funds restored at some level in the future.
What are your thoughts? How would you propose HUD counseling be funded outside of the government. Leave your comments below.
101 year old evicted in Reverse Mortgage T&I Default: Industry Leader Update
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The behind the scenes of the eviction of a 101 year old Detroit woman due to tax & insurance default on reverse mortgage
Video grabs from WXYZ television in Detroit.
Original Story of eviction here. Updated story of eviction here.
Friday’s Food for Thought: Pandora’s Box
HUD’s now suing Wells Fargo & Fannie Mae for their foreclosing on reverse mortgage borrowers. Did HUD open Pandora’s box with their recent mortgagee letter?
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