Comments on: Stimulus Bill Compromise Includes Higher Reverse Mortgage Loan Limit http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/ Reverse Mortgage News and Information Fri, 25 May 2012 03:24:22 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Dawn Smith http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19309 Dawn Smith Sat, 14 Feb 2009 16:57:04 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19309 Just a note regarding Jim's comment re: the failure to address "revision of the bankruptcy law allowing judges to adjust loan balances to reflect the real value of a seniors home." The bankruptcy attorney groups have all been lobbying strongly for that inclusion and still have hopes of it being included in future legislation. This legislation is essential - not only for seniors - but for all home owners attempting to obtain a loan modification. We have no leverage at all against the companies who created the mortgage crisis unless we can promise that if the mortgage company will not modify the loan - the bankruptcy judge can and shall. It is now a matter of lobbying your federal legislators to promote the importance of the mandatory "cram-down." Thank you, again, RM Daily for having this informative web site and newsletter. I will let you know if I hear of any updates on the bankruptcy issue. Just a note regarding Jim’s comment re: the failure to address “revision of the bankruptcy law allowing judges to adjust loan balances to reflect the real value of a seniors home.”

The bankruptcy attorney groups have all been lobbying strongly for that inclusion and still have hopes of it being included in future legislation. This legislation is essential – not only for seniors – but for all home owners attempting to obtain a loan modification. We have no leverage at all against the companies who created the mortgage crisis unless we can promise that if the mortgage company will not modify the loan – the bankruptcy judge can and shall.

It is now a matter of lobbying your federal legislators to promote the importance of the mandatory “cram-down.”

Thank you, again, RM Daily for having this informative web site and newsletter. I will let you know if I hear of any updates on the bankruptcy issue.

]]> By: Brad http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19239 Brad Fri, 13 Feb 2009 16:16:36 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19239 I’m certain there will be many seniors that will benefit from this temporary increase. I also think many will be offended by the cost to do the loan $12,500 for MIP $6,000 in origination and another $2,500 in third party fees adds up to $21,000 in closing costs. I appreciate that the MIP is directly associated with the value of the home and HUD need’s to collect enough funds to make sure the insurance “kitty” has plenty of dollars in it for potential future payout. But I think it’s time for this formula or the way that these funds get collected to get overhauled. Obviously the longer the loan is in place the higher the risk to HUD, perhaps adding more of this to fee to the rate would spread out cost to borrower and make it more realistic. Does anybody else have some viable solutions to this issue? I’m certain there will be many seniors that will benefit from this temporary increase. I also think many will be offended by the cost to do the loan $12,500 for MIP $6,000 in origination and another $2,500 in third party fees adds up to $21,000 in closing costs.

I appreciate that the MIP is directly associated with the value of the home and HUD need’s to collect enough funds to make sure the insurance “kitty” has plenty of dollars in it for potential future payout.

But I think it’s time for this formula or the way that these funds get collected to get overhauled. Obviously the longer the loan is in place the higher the risk to HUD, perhaps adding more of this to fee to the rate would spread out cost to borrower and make it more realistic.

Does anybody else have some viable solutions to this issue?

]]> By: John A. Smaldone http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19232 John A. Smaldone Fri, 13 Feb 2009 14:12:46 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19232 Joe, I appreciate your feed back. Lets you and I visit this situation again in year 2010. I understand what you are saying, I also admire your confidence in the system. I hope I am wrong and you are right. Time will tell, that is why I say, lets you and I visit again in 2010. Have a great day Joe. Best, John A. Smaldone Joe,

I appreciate your feed back. Lets you and I visit this situation again in year 2010. I understand what you are saying, I also admire your confidence in the system. I hope I am wrong and you are right. Time will tell, that is why I say, lets you and I visit again in 2010. Have a great day Joe.

Best,

John A. Smaldone

]]> By: Joe DeMarkey http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19231 Joe DeMarkey Fri, 13 Feb 2009 14:04:51 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19231 John, The political reality here was simple: we would NEVER have been able to get a permanent increase in the loan limits this year. The only chance we had for 2009 was to have a temporary increase (although I am very confident that we will get an extension if not a permanent change before the sunset provisions kick in), and to link it to the Economic Stimulus legislation. Just wanted to make sure you (and all other RMD readers) are well informed on this issue. John,

The political reality here was simple: we would NEVER have been able to get a permanent increase in the loan limits this year. The only chance we had for 2009 was to have a temporary increase (although I am very confident that we will get an extension if not a permanent change before the sunset provisions kick in), and to link it to the Economic Stimulus legislation.

Just wanted to make sure you (and all other RMD readers) are well informed on this issue.

]]> By: Joe DeMarkey http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19230 Joe DeMarkey Fri, 13 Feb 2009 13:51:46 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19230 I think that comparing the implementation of the HERA provisions that impacted the HECM program (including the $417,000 loan limit) to the HECM provisions in this bill (an increase in the loan limit to $625,500, once passed) is flawed. The delay in implementing the HERA provisions was due to confusion over the language describing the new loan limits - in fact, three different interpretations came from HUD lawyers, and it was that reason alone that the loan limit increase (and the new origination fee formula) was delayed. While we have all learned that "anything is possible" with an over-worked and under-staffed FHA, I am very confident that this change will be implemented much more quickly. Peter, Liz, Darryl, and staff are working day and night (no exaggeration) on your behalf - if industry participants can assist, they will let us all know what we can do to help get these changes implemented. I think that comparing the implementation of the HERA provisions that impacted the HECM program (including the $417,000 loan limit) to the HECM provisions in this bill (an increase in the loan limit to $625,500, once passed) is flawed. The delay in implementing the HERA provisions was due to confusion over the language describing the new loan limits – in fact, three different interpretations came from HUD lawyers, and it was that reason alone that the loan limit increase (and the new origination fee formula) was delayed.

While we have all learned that “anything is possible” with an over-worked and under-staffed FHA, I am very confident that this change will be implemented much more quickly.

Peter, Liz, Darryl, and staff are working day and night (no exaggeration) on your behalf – if industry participants can assist, they will let us all know what we can do to help get these changes implemented.

]]> By: John A. Smaldone http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19229 John A. Smaldone Fri, 13 Feb 2009 13:48:02 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19229 Good morning, I am happy to see the lending limit increase will still be part of the stimulus bill? However, what I don't like is the fact it is tied to Freddie's index and a multiplier is used. The main objection I have to the method they are using, is that it is temporary. Our legislators have a unique way of fleecing the American public. I see this unfolding as one of those we eventually will be fleeced on. If this was a sincere move on the part of our governmental officials to help our seniors, they would have had a permanent, non-formula based increase. Like everything else, our great politicians know all that their is to be known about everything. They think we, the people are naive and do not see through their motives! Thank you, John A. Smaldone Good morning,

I am happy to see the lending limit increase will still be part of the stimulus bill? However, what I don’t like is the fact it is tied to Freddie’s index and a multiplier is used. The main objection I have to the method they are using, is that it is temporary.

Our legislators have a unique way of fleecing the American public. I see this unfolding as one of those we eventually will be fleeced on.

If this was a sincere move on the part of our governmental officials to help our seniors, they would have had a permanent, non-formula based increase. Like everything else, our great politicians know all that their is to be known about everything. They think we, the people are naive and do not see through their motives!

Thank you,

John A. Smaldone

]]> By: Jim http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19227 Jim Fri, 13 Feb 2009 13:32:45 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19227 One thing that was left out of the bill was the revision of the bankruptcy law allowing judges to adjust loan balances to reflect the real value of a seniors home. I have seniors who are facing foreclosure because the reverse mortgage amount will not cover the balance owed and the banks will not take a short payoff. The banks have sucked all the money the seniors had in savings and what they borrowed making payments. I think a lot of these loans were made by predatory lenders. One thing that was left out of the bill was the revision of the bankruptcy law allowing judges to adjust loan balances to reflect the real value of a seniors home.
I have seniors who are facing foreclosure because the reverse mortgage amount will not cover the balance owed
and the banks will not take a short payoff. The banks have sucked all the money the seniors had in savings and what they borrowed making payments. I think a lot of these loans were made by predatory lenders.

]]> By: Peter Bell http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/comment-page-1/#comment-19185 Peter Bell Fri, 13 Feb 2009 01:25:55 +0000 http://reversemortgagedaily.com/2009/02/12/stimulus-bill-compromise-includes-higher-reverse-mortgage-loan-limit/#comment-19185 NRMLA expends more than "political capital" on such items; we spend real capital! Those in the industry should know that we have worked on the single national loan limit for several years. We have expended countless hours of staff time and paid hundreds of thousands of dollars for assistance from our legislative consultants. While some readers of RMD occasionally gripe about dues and event fees at NRMLA, if we didn't have that revenue to carry out our activities, your loan limits would still be $200,000-$362,000 (or less), not $417,000, and soon $625,500! As far as HUD's implementation, they fully understand the importance of doing it quickly. However, they are also dealing with the overall foreclosure crisis, re-starting the multifamily affordable rental housing sector which has ground to a halt, implementing numerous emergency provisions in this new bill, etc., in addition to our HECM provision. So, they have a lot to do -- plus brand new leadership that has to sign-off on everything. NRMLA expends more than “political capital” on such items; we spend real capital! Those in the industry should know that we have worked on the single national loan limit for several years. We have expended countless hours of staff time and paid hundreds of thousands of dollars for assistance from our legislative consultants. While some readers of RMD occasionally gripe about dues and event fees at NRMLA, if we didn’t have that revenue to carry out our activities, your loan limits would still be $200,000-$362,000 (or less), not $417,000, and soon $625,500!

As far as HUD’s implementation, they fully understand the importance of doing it quickly. However, they are also dealing with the overall foreclosure crisis, re-starting the multifamily affordable rental housing sector which has ground to a halt, implementing numerous emergency provisions in this new bill, etc., in addition to our HECM provision. So, they have a lot to do — plus brand new leadership that has to sign-off on everything.

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