Comments on: Reverse Mortgage Origination Fee Capped, AARP Still Not Happy

By: Rob H

Rob H — Sun, 14 Jun 2009 23:27:03 +0000

I wonder what Scott does or did for living–must have been volunteer work!

By: scott

scott — Wed, 17 Dec 2008 06:35:32 +0000

The lender came out 1 time, did not attend closing, and was not available for phone calls most of the time. So he did not do much.

By: mrreverse

mrreverse — Tue, 16 Dec 2008 19:33:01 +0000

Scott good for you negotiated a lower orgination fee of 1400 . which the orginator probly earned 660.00 . Possable made 2 trips to take applacation. Went toclosing ( which I doubt) was available for .your phone calls to help you tomdraw money or change payment schedule. Or probly gave you a the highestoal rate. Also helped negotiate closing cost. Probly not doing any thing to help the borrowers. I guess you do the same thing when you go to a resturant or tell your boss to give you less money for your work since you are not earning your commission. The same way a good mloan officer does to earn his fee. FYI Hud has set orginsaton fee at 2% starting at 2500 for minium fee and 130 home 2% and at 200000 1% over that amout up to 6000 max fee. Realtors charge 6% of sale price. Conventional mortgage will pay up to 5% of loan amount.

By: scott

scott — Mon, 15 Dec 2008 09:35:18 +0000

“Scot should learn more about fees before he talks. 70,000= 2500 not 1400″

mr. reverse:
JFYI, I DID learn about the fees before obtaining the reverse mortgage. I did much research on the subject of reverse mortgages. I was told by Fin. Freedom and another lender that it is usually $2,000 or 2%, but lenders usually charge the minimum of $2,000 and don’t go any lower. I took that as true. Is that info false? If so, I was falsely told that the minimum is $2,000 by 2 lenders. Anyhow, I stated correctly that we got the orig fee price of $1400, which is 2% of $70,000, what I previously stated.

…and yes, your bias shows in this area.

It is ludicrous that AARP is training counselors for these high prices. I wish I could make $125 for 35-40 minutes.

By: mrreverse

mrreverse — Sun, 14 Dec 2008 21:34:36 +0000

yes they are allowed to charge up to 125.000. some case like hardship should not be a charge. some states for residents don’t charge. there is a certain amount that FHA will give as grants to credit counslor’s . I think 125.00 for counsling is ludicrous for average time is 40 minutes to 1 hour. Thanks AARRP who trains counslors and companies who want to earn the big bucks are running to AARP to learn. espacail with the new purchase program. Counslors will be trainned after Jan 1,2009 more money for counslors!!!!!!!!!
Thanks AARP fpr looking out for our seniors.

By: Bob LaFay

Bob LaFay — Sun, 14 Dec 2008 21:14:07 +0000

mrreverse,
Are HUD approved counselors charging Counseling fees
directly to the Senior Reverse Mortgage applicants
anywhere in the country? If you can come up with any
info I sure would appreciate your efforts. Thanks

By: mrreverse

mrreverse — Sun, 14 Dec 2008 05:28:30 +0000

why should aarp ask for lower counsling fees. aarp charges money to train counslors. counslors are making money at $125.00 nor does the 2% mip is a money maker for hud.Scot should learn more about fees before he talks. 70,000= 2500 not 1400

By: John Brodey

John Brodey — Sun, 07 Dec 2008 17:11:49 +0000

Well, the AARP can’t seem to make up it’s mind whether it will put it’s support behind the reverse mortgage program or not, despite their participation at its inception. Perhaps, as some suggest and as was writting up in Bloomberg, they are not making any money off reverse mortgages.
The reforms the Modernization Bill sought to achieve took a left turn somewhere as costs went up despite the capping of the origination fee.
I understand that reducing the MIP will adversely effect lender participation but there must be a solution. Perhaps deferring part of the payment and amortizing it over the course of the loan, effectively reducing the number at closing, would work.