In light of recent Department of Housing and Urban Development budget cuts to HUD’s housing counseling programs, a Mortgage Bankers Association study shows that potential borrowers who take part in counseling programs and prepurchase education may be more likely to pay their mortgages on time. However, the study evidence is not consistent and compelling, according [...]

A Department of Housing and Urban Development-issued Frequently Asked Questions document addresses the recent budget cuts that will effectively put an end to HUD housing counseling funding, which has previously assisted counseling agencies that provide reverse mortgage counseling services. The FAQ is the first public statement from HUD relating to the counseling cuts, which have [...]

While housing counseling agencies have spoken out against recent Department of Housing and Urban Development budget cuts that will eliminate funding for HUD’s housing counseling programs, reverse mortgage lenders acknowledge that there must be a solution for the financially destitute, but that the situation is not as dire overall. With HECM counseling comprising a small [...]

The New York Daily News is reporting that while the number of reverse mortgages originated nationwide fell 35% to 72,683 in 2010, demand is expected to rise with the release of the HECM Saver. John Lunde, president of Reverse Market Insight, told the NY Daily News he expects reverse mortgage closings this year to climb to [...]

A widely covered Ponzi scheme arrest in Staten Island, N.Y. involved reverse mortgages as one of its several alleged illegal operations. The alleged scheme, estimated to be valued at $12 million, lasted from 2007 to 2010 and its operator has been charged with securities fraud, wire fraud and money laundering in a federal indictment. The [...]

The Department of Housing and Urban Development announced that 18 lenders will participate in a new two-year pilot program that will offer qualified borrowers living in certain parts of the country low-cost loans to make energy-saving improvements to their homes. Called the PowerSaver Program, the loans are backed by the Federal Housing Administration and offer [...]