Former GNMA CEO Says Enough With All the Negative Press Related to Reverse Mortgages

February 3rd, 2010 | by John Yedinak Published in GNMA, News, Reverse Mortgage | 22 Comments

We are all frustrated with the amount of negative press reverse mortgages receive and former Ginnie Mae CEO Joe Murin has joined the club. In his Voice of Housing column for Mortgage News Daily, Murin writes, “I have had about all I can stand with the negative press related to Reverse Lending.”

Speaking for Baby Boomers in general Murin adds “For those of us with limited income, yet still independent and don’t want to ask our children for help, the reverse mortgage is a perfect solution.”

He goes on to explain his own parents situation:

I have parents in their mid-eighties who, fortunately are in good health and very independent. But when they were facing escalating property taxes, repairs to their home, and annual increases to their supplemental health care coverage, I began to see a change in them that concerned me. Too proud to ask for help, I approached them with the thought of applying for a reverse mortgage. As one could expect it took some time to educate them but they forged ahead. Now, some six months after they closed they are so much more independent and free of the worries that were having a serious impact on their quality of life.

Reverse Mortgages: Friend or Foe? Definitely Friend

Thanks to Shannon for the tip.

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James_E_Veale_CPA_MBT

Admin,

Great link.

Mr. Murin does a great job. It is balanced and with little fluff or the typical inaccurate puff. The anecdote is not the proof but enhances the reason why he has concluded that reverse mortgages is a useful and needed financial product.

Bravo!!!
Former RM Executive

Fantastic. About time someone stood up and told the others to back off. For good originating shops I commend you..for those that are after a quick buck and could care less about the senior – move on!
rmccsa

Bravo!! Many of us need to stand up (especially the gov't) and say “no more”!!
reversemaniac

I wonder if Joe, or Brian Montgomery, would be willing to be spokespersons to support the HECM program, on behalf of NRMLA?

Now that is something I could rally around instead of some undefined PR campaign projected to cost in excess of $1,000,000/yr!
cincinnatireverse

Agreed. It's nice to see some positive press discussing the benefits of this product. Too many don't understand and only “assume” it's not good for the senior.
lancejackson

These stories are why many of us are in the business. What a great feeling it is to make a significant positive impact on a life. It's unfortunate that so many seem to see it the other way.
REVGUYJIM

GREAT article, but he's preaching to the choir! We need for NRMLA or the marketing depts of some of the major players in our industry to get some objective pieces in the professional trade pubs of those who are currently advising seniors against RMs – elder law attorneys, accountants, financial planners, insurance agents, etc. Then we'd be making some real progress.
DaveGrady

I'm curious to see if Joe, while CEO of Fannie, ever directed his folks to push mortgagees to drive down property values to make the loans more palatable to Fannie. What other reason would an underwriter have for changing appraised property homestead values. BTW, what limited income is he talking about? “For those of us with limited income, yet still independent and don’t want to ask our children for help, the reverse mortgage is a perfect solution.” The guy was a CEO of Fannie Mae for Pete's sake.
Don't misunderstand, the reverse as it was written is a great program for seniors, but with HUD deductions of 10% and more coming, mortgagee devaluations and the fact that after 2/15, senior homeowners will be forced to walk away from reverses in droves because they cannot pay for appraisals at the door, one kinda has to question it now and I believe the March numbers will bear out the fatc that the process is now broken..
michaelpinter

Dave,
stop crying in your beer and let's just see how it all pans out. I agree that 2/15 is yet another setback for all of us, but this piece by Joe Murin was great and we can all hope that more positive press will be coming soon.
reversemaniac

Joe was not the CEO of Fannie Mae and FNMA had nothing to do with “driving down home values”, that's the marketplace.

Joe was the CEO of Ginnie Mae.
comeondude

Michael – let him cry in his beer! The crap is circling the bowl – enjoy enjoy! Darwin said it, weak eat the strong. F-L-U-S-H!

Oh yeah! Byebye Dave Grady. Byebye!
DaveGrady

Sorry about that Flag. They all look alike in the dark areas they operate in.
DaveGrady

The only positive press will be when HUD announces a reversal of current policy or Congress changes the law to make HVCC disappear. In the meantime what all of us say here in this venue is lip service to make ourselves feel better but with no real meaning in the overall scheme of things, kinda like cartoons in the Sunday paper. Leverage your Congressmen not each other and certainly not a growing majority of folks joining me here in the commode..
http://www.cincinnatifederal.com Jerry Heard

I agree that it’s nice to see some poitive press for a change. Too many just don’t understand that this product can truly benefit our struggling seniors.

Great article!
The_Critic

REVGUYJIM,

Much agreed.
The_Critic

You did such a great job yesterday in your rebuke to Lance. Now today well, it's the same old nonsense.

You can do better than this….
REVGUYJIM

Dave –
I've seen several references to “2/15″ and requirement for seniors to 'pay at the door' — can you tell me what that's all about? I've heard nothing on an industry level to that effect…
DaveGrady

Jim,

According to HUD, HVCC goes into effect that day and the Appraisal Management Companies (AMCs) have stated that they will require payment for the appraisal at the door when the appraiser shows up to do the appraisal. Prices are ranging from $450 – $600 and a vast majority of seniors will be unable to pay that and walk away. The loss of that much business could cripple the industry and damage thousands of senior.

Dave

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REVGUYJIM

Sounds like a broker issue – I've not heard of the AMC's requiring payment 'at the door' when the appraisal order is coming from a direct lender. I may be wrong…and 2/15 is right around the corner.
Anonymous

Sounds like a broker issue – I’ve not heard of the AMC’s requiring payment ‘at the door’ when the appraisal order is coming from a direct lender. I may be wrong…and 2/15 is right around the corner.
DaveGrady

Jim,
Wish you were right, but while the DE may order the appraisal, it will be thru the AMC who will be managing the appraisal process that the DEs did not want to handle and that is why they brought the AMCs on board. AMCs are covering their bets by saying they must be paid by the client up front in case the deal goes bad. While it is an understandable business decision, it really has a horrible impact on seniors. BTW, with DEs ordering appraisals and at the same time telling their UWs to devalue those same appraisalsit is like putting wolves in with the sheep.
Anonymous

Jim,rn Wish you were right, but while the DE may order the appraisal, it will be thru the AMC who will be managing the appraisal process that the DEs did not want to handle and that is why they brought the AMCs on board. AMCs are covering their bets by saying they must be paid by the client up front in case the deal goes bad. While it is an understandable business decision, it really has a horrible impact on seniors. BTW, with DEs ordering appraisals and at the same time telling their UWs to devalue those same appraisalsit is like putting wolves in with the sheep.