‘More reverse mortgage servicing protections needed’

reverse mortgage foreclosure

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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A Tough Sale?

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A ‘tough sell’, HECM complaints, and property tax assistance for reverse mortgage borrowers

This week, reverse mortgage stories from across the web…

New York Times: Expose Examined

Ironic. That is on the eve of the National Reverse Mortgage Lender’s Association Annual Meeting in San Antonio the New York Times published a front page expose. After a year and a half of mostly positive press since the introduction of the HECM Saver has the media pendulum swung back to its traditionally negative view? And more importantly, does the article point out some legitimate issues that we as an industry must address?

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The life of a reverse after closing

Often out of sight and mind after a reverse mortgage closes, servicing is the backbone of the ongoing relationship with the borrower. From monthly draws, tenure payments and loan questions reverse mortgage servicers are on the front lines of long-term customer support and care. The average loan officer is with the borrower for 3-9 months while the servicer….

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Moral Hazard?

Moral Hazard? One definition is the lack of incentive to guard against risk because one is protected from the consequences while the risk rests on another party. Is that what we have with reverse mortgage borrowers who have defaulted? Non-payment of taxes and insurance has been an issue. A look at what real estate columnist had to say recently.

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Celink & Reverse Mortgages – Curing T&I Defaults: A servicers perspective

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Learn what Celink is doing to help borrowers prevent and cure tax and insurance defaults for reverse mortgage borrowers.

A Behind The Scenes Look At Curing Tax & Insurance Defaults
Our exclusive interview with Celink’s John LaRose at last month’s NRMLA meeting uncovers some of the steps being taken by reverse mortgage servicers to cure tax and insurance defaults.

Celink & Reverse Mortgages