Admin,

Great information. Any indication when the CR will be signed?

Please Mr. President?

Our seniors have suffered enough. PLF reductions and housing values are bad enough. This will help many seniors in higher valued homes escape from adjustable rate mortgages where possible.

This is good news.

For the record, let me state that as of late Tuesday afternoon this past week, as the Continuing Resolution conference report was being prepared to go to the House floor, the HECM loan limit was omitted. NRMLA's legislative team swung into action and made sure it was added in.

In fact, when NRMA's leadership met with FHA Commissioner Stevens and his staff the next day, he remarked that somehow extending the HECM limits thru 2010 was inserted into the CR at the last minute.

"How do you think it got there?" I was chuckling to myself as the Commissioner made this comment.

My sincere thanks to our Congressional relations team, Melody Fennel and David Horne, for their quick and effective response on this matter.

Thank you. Some people don't appreciate the behind the scenes action an effective organization provides.

Mr. Bell,

It seems it is always the few that take care of the many. It is hard to believe how many complain about dues and conference costs. We need a voice in DC and NRMLA provides it.

I hate to talk about those who want a free ride but....

Mr. Bell,

Will the extension impact the $798 million positive credit subsidy? Or was it already reflected in the HUD reduction to the principal limit factors?

Thanks.

The need for the $798 million in credit subsidy for HECM was eliminated by HUD's action in reducing the PLFs. With lower PLFs, the program is scored to be revenue neutral.

Mr. Bell,

It is hard to believe, once scored....

That is great news. Although unlikely, here's hoping that Congress will find some way to authorize the subsidy and allow HUD to reverse the 10% reduction. I guess no matter how unlikely, we can always hope.

Again thanks for the explanation..

I do not understand how reducing the PLFs on loans made this year addresses the negative subsidy created by claims for loans terminating exceeding premiums collected this year. What am I missing?

REVGUYJIM,

Where are you coming up with the idea that cash payments for claims on loans terminating during the fiscal year ending September 30, 2010 will exceed premiums collected? The $798 million positive credit subsidy has absolutely nothing to do with expected payouts over premuim collections for any fiscal year, period.

The postive credit subsidy is a projection of the outflow of cash to pay for claims over the premiums collected on the projected HECMs to be endorsed in the current fiscal year. It is only this cohort of HECMs that are involved. The first time this will happen will not be until some time in the future, if ever.

In other words, if 150,000 HECMs will be endorsed this fiscal year, it is only these HECMs that are being looked at. It is these HECMs and only these HECMs that the Administration is estimating will cost US taxpayers $798 million.

By reducing the PLFs on the HECMs to be endorsed in this fiscal year by 10%, HUD is saying that there will be no need for a positive credit subsidy on the HECMs endorsed during the current fiscal year. I hope that explains what is going on.

Mr. Veale - Thank you for taking the time to clarify the process for me; I obviously misunderstood it!

BTW, while I "subscribe" to email replies to my posts, I've never received one. I just happened to find the "Replies" section in my Profile today and found several of your (typically) thoughtful responses - first time I've seen them! Thanks again.

Peter:

Thank you, and the NRMLA legislative team, for getting this critical item added to the CR!

This will certainly make the upcoming annual conference in San Diego a lot more pleasant.

Regards,
John

Much agreed.

Mr. Nelson,

It is good to see you are actively involved once more.

While no one needs to defend Mr. Bell, sometimes people seem to think NRMLA is a senior advocate group but that simply is not the case. NRMLA is our industry trade association. It rigorously promotes the concerns of the reverse mortgage industry and defends our interests. Some promote the idea that along with its industry responsibilities, it also has responsibility for representing seniors in almost every way imaginable.

You bring up a good point. Here is a reverse mortgage lender doing something that appears inconsistent with that mission. Nationally chartered banks are complex entities. I very much doubt if the mortgage was owned by Bank of America; however, it probably is the servicing entity. As the servicing entity, there is little Bank of America can do other than following the stipulations its agreement as the servicer requires of it.

It seems since the loan in question is a forward mortgage the right organization to be handling this issue is the MBA. NRMLA cannot right every wrong in the mortgage industry impacting seniors or even for seniors who want to replace their forward mortgage with a reverse. If it did, no monies would be left to provide the services that only NRMLA does. We are a dinky industry and the trade association has a very limited budget.

Mr. Nelson,

I have no idea why you persist in attacking Mr. Bell and the NRMLA staff. This kind of activity only draws negative attention to a truly hard working and caring individual -- you. NRMLA is what it is. It is a lenders organization and tries to promote the industry as well as it can.

While it is all right to call what I write baloney, please do not apply that same principle to an individual who is a recognized leader in our industry like Mr. Bell. That really reflects badly on you. I am sure many others call what I write baloney and have said it before. Who am I?

You are a senior like me. We are both full grown men. Just understand, what you write has consequences; so please be careful what you write.

jamesnelson: Try some tact and courtesy for a change and maybe your opinions will carry more weight. No more baloney about anonymity and accusing people of lying. Yes, I am a senior (71), and try to act like one, most of the time (not this time though).