Any business trip warrants considerable attention to preparation. If you will be attending the National Reverse Mortgage Lenders Association annual meeting in Chicago, here are some tips to help you get the most from the conference.
Collectively as an industry we have endured numerous changes to the Home Equity Conversion Mortgage program in recent years. Two months ago, FHA outlined several proposed changes to the HECM program and received inputs from loan officers, industry participants, and most recently the National Reverse Mortgage Lenders Association.
NRMLA recently submitted a detailed 30-page letter to the Federal Housing Administration regarding the agency’s proposed rule changes to strengthen the federally-insured reverse mortgage program. The document goes into great detail to outline specific concerns of the new rules impact on future borrowers and our industry as a whole.
For the sake of brevity, we will highlight a few notable responses.
1. Lower interest rate caps. NRMLA rightly points out the significant unintended consequences of lowering both annual and lifetime adjustable interest rate caps stating, “various institutional investors have indicated that they would have to cease purchasing monthly adjustable HMBS pools if the lifetime cap was reduced to 5%.” What FHA overlooked is our small fragile secondary market, limits on investor derivatives, and increased consumer costs.
2. Required HECM counseling prior to a sales contract. The HECM for Purchase program while attractive to downsizing seniors, has not met it’s anticipated volume in our industry. FHA’s requirement for prospective borrowers or homebuyers to complete HECM counseling prior to signing a sales contract is impractical at…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary, and technology? Visit ReverseFocus.com today
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If you want an example of rapid industry change look no further than the Home Equity Conversion Mortgage program.
Recently Reverse Mortgage Daily interviewed Peter Bell, president of the National Reverse Mortgage Lenders Association or NRMLA seeking insight on the recent spate of changes to the HECM program and our industry’sfuture.
First RMD asked- given the Financial Assessment is underway and the non-borrowing spouse issue seems to be getting resolved, how would you classify the footing of the Reverse Mortgage program right now relative to other points in history?
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
Before you jet off to Miami Beach in a few weeks for the 16th annual NRMLA convention Nov 10-12, 2014 (or drive to the venue, if you happen to live in the area), it’s wise to prepare.
Continue readingThe ‘New’ Reverse Mortgage. It’s a timely title considering the slate of recent changes to the HECM program and NRMLA’s Extreme Summit television ads which tout a new reverse mortgage. While one could accurately surmise we have a ‘new’ product we still face some of the same old challenges of years past.
Continue readingMany of our viewers know that often our industry’s image has often been shaped in part by negative media stories and misinformed columnists and consumer groups. In essence we have found ourselves on the defensive having to respond to claims which are often false. The Extreme Summit seeks to transform the public’s perception of the HECM through…
Continue readingDuring a January 16th meeting of the National Reverse Mortgage Lenders Association’s Executive Committee, Deputy Assistant Secretary Charles Coulter said to expect a mortgagee letter in the coming weeks regarding non-borrowing spouses. Coulter said “The first ML will essentially require that in the case of a non-borrower spouse, the age of the younger member of the couple will be utilized to determine the appropriate PLF [principal limit factor]. HUD will be modifying the PLF tables to cover ages below 62 for this purpose.”
Continue readingMarketing experts see plenty of companies begin a public relations campaign and then leave it in the hands of the media. When it comes to reverse mortgages one can safely say the media has done its share of harming the reverse mortgage’s reputation with half-truths, inaccuracies and outright misleading statements. Sure some media outlets have given balanced or positive coverage but are we controlling and shaping the message. The good news is that our industry is taking action. The National Reverse Mortgage Lenders Association in cooperation with several lenders is launching the “Extreme Summit”. Its a PR effort focused on geo-targeted advertising, driving positive impressions in the news and rebranding the HECM product itself.
The idea was born from a brainstorming session held at NRMLA’s 2012 annual meeting in San Antonio led by Liberty Home Equity Solutions CEO Otto Kumbar. Lender participants are putting there money where their mouth is committing over $2 million dollars to date. Such a campaign is critical since the perceived typical reverse mortgage borrower is becoming more scarce in light of reduced lending ratios and the financial assessment. If we let the media and general public push the erroneous notion the loan is only for the house rich and cash poor our marketshare stands to take another cut. Rather than playing damage control…
NRMLA has asked for both changes & clarification of the upcoming financial assessment
Continue readingWith the reverse mortgage industry re-tuning in a major key, it’s helpful to make the most of every opportunity to connect, communicate and collaborate for enhanced business success in 2014 and beyond.
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