Senior Lending Network Suspends Proprietary Reverse Mortgage Products

October 28th, 2008 | by John Yedinak Published in Jumbo Products, LLS, News, Products, Reverse Mortgage | 29 Comments

Last night the Senior Lending Network announced that it would be temporarily suspending all new applications for its Equity Plus Advantage and Simple 60 for the next 60 days. All remaining applications need to be submitted by October, 29 and must close by November 26, 2008.

According to the email, the SLN saw its volume of new submissions increase much more than expected and has exceeded the mandated allowable threshold on KBC’s balance sheet. Since they were the last remaining wholesale lender to offer any proprietary products this isn’t a huge surprise. As far as I know, Countrywide is the only remaining lender offering a jumbo product right now (retail only).

With just a few more days until the “target date” from HUD to implement the new loan limits, we have yet to see the Mortgagee Letters. I honestly thought we would’ve seen something by now since HUD’s website already reflects the new loan limits, but with HUD you never know.

Technorati Tags: Reverse Mortgage,News,HECM,FHA,HUD,Jumbo Reverse Mortgage,Senior Lending Network

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David

Cynic, I agree with you its too bad about all the jumbo product going away. There is a large market for them and HUD should have raised the limits greater than 417K in select areas.

I disagree with you if you have any hope at all that a “new” Obama administration will do anything.
Todd

Regarding the posted comments about Jumbo products going away. I believe what you’re seeing is a transition taking place. I do not see the market (wall street) allowing for the wholesale segment of this industry to have access to the Jumbo product based on all of the new regulatory requirements. Too much risk for the bank who provides the program. You will see the jumbo product return to the market but it will only be available via the retail channel. You will also see the L.T.V.’s for the jumbo product increase once all of the big guy’s truly know what kind of risk they have on their books and how to value it. Great news if you’re on the retail side; bad news if you’re a broker.
Robert

Todd – if the bank underwrites the loan file, rediscloses to the borrower and revalidates the value, can you explain to me wholesale risk you are discribing?
Eric

Bank of America in addition to Countrywide still offers a proprietary Jumbo Reverse Mortgage titled Platinum (retail only).
Frankie

I have a large Jumbo Mtg and as a Widow who now has no income, the Reverse for me cannot apply. Why??? I need help as much as the middle to lower income group. Once green pastures are now dried up weeds.
http://seniorLendingNework Frankie Leather

It seems that the government gives out money to the Banks and we, the struggling homeowner cannot get a Reverse, or a line of credit to help cash flow…where is the justice?
http://seniorLendingNework Frankie Leather

Let me restate the No Doc loans that are no longer available. i have many assets to use as collacteral but as good as they are they limit what I can borrow against it. Why should I risk a Million dollar property for $200,000. Do they think i am stupid. My problem is short term 6-8 months of decreased cash. No one is stepping to plate to help…Banks, Brokers, Hedgefund wanna be’s…is there no realistice program out there to help me?
Eric

Frankie,

If you don’t mind me asking what is your age and what city/state do you live in?
http://seniorLendingNework Frankie Leather

I am a very young 65, neaver had financial difficulties before so I find this stressful. Citi Mortgage is black mailing me by threatening to go to the IRS, and start foreclosure,even after i told them i was in loan modification, and had already done a Hardship letter, and sent my finacial statements to them. I am just one month behind….I have plenty of assets but cannot leverage them…a lot of answer to a small question
http://seniorLendingNework Frankie Leather

I live in Ft. Myers, Florida
Eric

Frankie,

Not to get into a great deal of detail realizing your options are very limited but a Reverse Mortgage, although not a great short term solution due to the fees, would allow you to borrow approximately $250k after fees. It appears you have exhausted all of your other options and this would be the only recommendation I could make. I guess it all depends on your level of need.

I hope this helps…
http://seniorLendingNework Frankie Leather

Thanks for the help, but it has been determined that because of the $712,000 mtg, I do not qualify for a reverse… My lender would rather lose $500,000 in a short sale ather than help me with a forebearance or other help..again thanks
Eric

Oh, I am so sorry. I was not aware of the first mtg for $712k. I do apologize and will hope for the best for you.
Robert

Frankie – what state do you live in? Have you contacted hard money lenders (equity lenders) since this is apparently a short term bridge loan?
http://seniorLendingNework Frankie Leather

No, I haven’t for I been going the conventional route. I live in Ft. Myers Florida…the highest rate of foreclosurs in the country. I would prefer to stay in my home, My business should recover in 6-8 months. But with all my assets getting a cash flow is a problem. Next step is to try for a SBL…thanks for stepping in.
Robert

Frankie- I’m in Naples, FL and President of the Reverse Mortgage Group. Feel free to call me at 239-325-5555. Ask for Robert.
http://seniorLendingNework Frankie Leather

Thanks Robert, will give you a call. Maybe you are a miracle worker.
http://seniorLendingNework Frankie Leather

Government Scams. If they truly want to help a homeowner, a Senior Homeowner who is in need of a Reverse Mtg. but because of a Jumbo..no help. Trying to work with lender to Reduce Principle so that i can qualify. What is better, lose $500,00 in a short sale or $250,000 of a reduction and allow me to stay in my home? A no brainer. If I abandoned this home it would never be able to recover…soooo, what is next? Obama may raise taxes…How about a 2009 BOSTON TEA PARTY. It worked then and it could again as they are asking us to bail out the very Lender that will not bail me out.
Robert

Frankie – you never called me, 239-325-5555
http://seniorLendingNework Frankie Leather

this morning I read, finally that they are considerig raising the Reverse Rate to $626,250..emagine that! I have been telling everyone of that possiblility. if my mtg lender “CITIMORTGAGE” could forgive $87,000 I could get a Reverse, stay in my home, and they would not lose $712,000 sounds reasonable, doesn’t it? Now to find someone to fight my cause…Robert where are you?
http://seniorLendingNework Frankie Leather

After conferring with a very Knowledgeable person, my Zest to agquire a Reverse Mtg may not be my answer. will still be hopeful as i know many homeowners are also. I thank all that have commented on my remarks.
http://seniorLendingNework Frankie Leather

Can a Reverse Mortgage be obtained for an Equity Line of credit? Is it the same as a regular Mtg for in essence I owe the Bank $250,000?
http://seniorLendingNework Frankie Leather

I should be in Government…seems I had it pegged a long time ago. My lender is thinkng of reducing my principle, imagine that, so I can get a Reverse Mortgage…Guess they did not want my Inventory!!!!
Robert

Frankie we spoke a while back. Please call me and give me the details. I find this very interesting.

Robert in Naples 239.325.5555
Harry

Frankie…

did it ever occurr to you that the bailout funds paid for by the working taxpayers of this country should not be used to fund your excessive life style?….did you ever think about getting a job? Perhaps you might sell some of your assets to cover your expenses….you sound like someone that needs a reality check…or a job like the rest of us..people like you are what is wrong with this country…..can’t pay your mortgage payments on your $720,000 mortgage ….oooh too bad….was it your late hussband that was productive? If it was you get back out there and do it again…if you can, or else….stop whining…people who have actually paid their dues deserve help….not someone that does not contribute
http://seniorLendingNework Frankie Leather

You are the disgusting one. I have paid my dues many times over. Who are you to say my need isn’t as great as the next one. My late husband took out this mortgage, we paid taxes all our life, provided jobs for thousands and their families. I am 65 and who do you think you are, that does not know my situation and what I have endured?…I did not choose to have this burden. How dare you use this wonderful site to air your foul misunderstanding of me…You are a diservice not only to yourself but others. Most of my life has been spent serving others that were less fortunate, Sir, I have paid my dues, YOU GET A REALITY CHECK ON YOUR DEMENTED WAY OF THINKING. I am proud of my accomplishments to my community and others. If you have read anything you would see I have exhausted all avenues of help. I am able to get a reverse. So there you sick irresponsible nar do well.
http://seniorLendingNework Frankie Leather

One final response. It is people like you that sickens society with your attitude. I am grateful to still be a viable citizen, giving to my community. Yet you would deny me a place to live? Now, done you do not deserve any more on my time.
http://seniorLendingNework Frankie Leather

I just read your further comments…You are a cruel human being. To tell me that I am a parasite and a waste of a human being. I lost my husband had a horrific auto accident and have no ability to work. I take care of my grandchildren whose parents have been laid off, I am able to volunteer at the hospitals, make my rounds at the Va. You have tapped into a darkside of your personalility without knowing who I am. It is regretful people like you are are filled with such HATE. Take your dark and hurtful messages elsewhere for this site is for good people, asking for help and information. May you never suffer the trauma that have befallen me. I none the less would hope that anyone in distress would be able to seek help. Go spew you vile comments elsewhere.
http://seniorLendingNework Frankie Leather

To all the wonderful people that have offered their help in addressing my situation. I will no longer go to this site, as I do not deserve the comments made my a Harry, who does not know me.I have been a vital part of my country as was my late Husband, we gave more taxes in our life time than Harry ever has and for his comments to be so directed at a person he has no clue as to their situation, is regretful. To think he walks among us is frightening. Again thank you all for your gracious comments.

Senior Lending Network Suspends Proprietary Reverse Mortgage Products

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