Comments on: Fannie Mae Pricing Change Brings Higher Margins For Reverse Mortgages

By: No Reverse Mortgage Origination Fee Trend, Will it Last? | Mortgage Rates Canada

Thu, 01 Apr 2010 16:48:18 +0000

[...] Lets every wish that pricing relic brawny because the business needs every the support it crapper intend correct now, but if Fannie Mae has taught us anything… it’s that pricing crapper modify overnight. [...]

By: Ginnie Mae HECM MBS Issuance Up Over 600% in 2009 | Mortgage Rates Canada

Ginnie Mae HECM MBS Issuance Up Over 600% in 2009 | Mortgage Rates Canada — Sun, 17 Jan 2010 12:33:00 +0000

[...] mortgage lenders started turned to Ginnie Mae last year after Fannie Mae drastically adjusted its pricing strategy and are showing no signs of turning back as investor demand continues to increase. In fact, [...]

By: Frank Miller

Frank Miller — Mon, 06 Apr 2009 13:15:55 +0000

Tbird:

Maybe the Met Life Fixed?

By: Tbird

Tbird — Mon, 06 Apr 2009 01:42:56 +0000

I’m not looking forward to Monday. I use reverse mortgages to replace old manufactured homes with brand new manufactured homes with no payment. At this time I have four senior families living in temporary housing. Their old homes are in Mexico. The new home has been manufactured, and has to be paid for by the dealer. Live pricing has eliminated three borrowers from getting a reverse mortgage. These seniors have a new home on their land, and can’t pay for it!
I’m looking for ideas.

By: John A. Smaldone

John A. Smaldone — Thu, 02 Apr 2009 13:27:10 +0000

Old Timer,

I agree with you 100%. Sure is a different industry and world we live in. You have a good day and thanks for your reply.

Best regards,

John A. Smaldone

By: Old Timer

Old Timer — Thu, 02 Apr 2009 03:12:49 +0000

John, I am starting to wonder. The more I think about how truly impotent NRMLA has been over the past several years the madder I get.

Prevent reduction of fees – FAILED
Prevent crazy arbitrary margin increases – FAILED
Prevent crazy counseling requirements – FAILED

These are just the latest. When was the last time you heard of a broker getting kicked out of NRMLA for violating its’ code of ethics?

We as lenders are better served contacting our appropriate congressmen directly.

And in reply to the Rev. Dr. Ed Cook, I am sorry. HUD & Fannie Mae have failed you, not the “greedy loan officer”

By: Rev. Dr. Ed Cook

Rev. Dr. Ed Cook — Thu, 02 Apr 2009 00:41:54 +0000

I just sent the following to my 2 senators and my congressman, followed by an email I sent to my mortgage broker. Please excuse any improper use of terms, I’m pretty unfamiliar with the industry.

“Last Friday (3/27/2009) my wife and began discussion with a broker for a reverse mortgage. It seems that Fannie Mae dropped a bomb over the weekend by raising margins almost double immediately, without notice or grace period. This may just take us out of the possibility of staying in our home.

“Here are the particulars: We are both 65 years old. I retired last year. Through Social Security, a very small pension ($355/month), and the two of us working 6 part-time jobs between us, we have managed to piece together 75-80% of of the salary + pastoral housing allowance that I had before I retired – an income stream that hadn’t increased since 2003 and that yielded a higher standard of living than just the raw dollars would suggest since the pastoral housing allowance was non-taxable.

“Our interest-only mortage has a baloon payment due in January 2010. Even at today’s low rates, we cannot afford to refinance and stay in our home. It looked like a reverse mortage would enable us to stay which is desireable since wee currently live within 10 miles of our 4 grandchildren. Now a reverse mortage may be out of reach with higher margins and lower lending limits. Being forced to sell in this depressed housing market is not an exicitng thought.

“As taxpayers, we’re providing billins (trillions?) to save the banking and finance industry. Now we’re being asked to also pay almost double what the market rates were last week to help make the banks and financial institutions interested in HECMs.

“How do you and your senate (or house) colleagues intend to provide help to us beleagered seniors?

-e.”

here’s the note to my broker:

I’ve been trying to do a little web-surfing to understand what’s going on with the reverse mortgage changes. I have no idea what “mandatory delivery,” “margin,” and “principle limit” are. Since we were already at a point of having to add cash to close, will this put us out of having a reverse mortgage as a possibility?”

By: John A. Smaldone

John A. Smaldone — Thu, 02 Apr 2009 00:18:07 +0000

Old timer,

Your response is right on target as well, thank for the compliment by the way. NRMLA should have been in this with both Feet before the announcement even came out. They knew about it long before any of us did, I am very disappointed in NRMLA to say the least.

Old timer, are we a thing of the past or are we what the industry of today needs more than ever? Have a good evening.

Best regards,

John A. Smaldone