Comments on: FHA Puts Broker Due Diligence on Reverse Mortgage Wholesale Lenders Shoulders

By: Anonymous

Anonymous — Thu, 08 Oct 2009 17:05:00 +0000

I think it just shows that lenders will need to modify their approach on how they manage and review the brokers they approve. The quick review and the buddy referals are going to be a thing of the past.

By: Mike_Z

Mike_Z — Thu, 08 Oct 2009 15:05:53 +0000

By: The_Cynic

The_Cynic — Thu, 24 Sep 2009 20:30:13 +0000

Mr. Jackson is right.

HOWEVER, it is not just the one action listed above that will drive correspondents out of this business. It is the cumulative impact of so many changes that have occurred, are occurring and will occur over the next 120 days that will ultimately strike so hard at correspondents.

Many expect to see YSP gone from all HECMs starting in January due to RESPA changes. This could be THE final nail in the coffin for most correspondents.

By: HECM_Dude

HECM_Dude — Thu, 24 Sep 2009 16:52:54 +0000

I'm old, and I don't like change.

By: lancejackson

lancejackson — Thu, 24 Sep 2009 14:09:31 +0000

This is not a nail in the coffin of brokers. It's simply more in line with how the traditional wholesale mortgage business has always worked. There's a reason why brokers exist (at least the good ones) – they bring choice and value to their customers.

By: billpeters

billpeters — Thu, 24 Sep 2009 10:38:00 +0000

Okay, I'll ask the two obvious questions.

So what exactly are we talking about here? Is it penaties for compliance shortcomings or are we talking about a lender having to eat defaults on files where at some point in the future the FHA retroactively denies mortgage insurance coverage?

By: floridareversemortgageguy

floridareversemortgageguy — Wed, 23 Sep 2009 16:53:28 +0000

Another nail in the coffin of correspondents and brokers. It's a good thing. Sherry Apanay's statement about the number of correspondents decreasing is an understatement.