In case you missed it… here’s what happened in reverse mortgage news this week.
The CFPB began clarifying its LO Comp rule. The CFPB, which now holds authority over what was formerly the Fed’s loan originator compensation rule, issued a bulletin this week clarifying the rule’s policy on compensation of employees through profit pools. The rule permits employers to contribute to Qualified Plans out of a profit pool derived from loan originations, the bulletin states. More change is on the way for the rule, the CFPB said.
“Boomer” marketing myths unveiled… Marketing guru Jim Gilmartin sat down with RMD to share his expertise on marketing to an aging population. Rule No. 1? There’s no such thing as “boomer marketing.” Read more about Jim’s tips for reverse mortgage sales and ageless marketing.
Reverse mortgage volume took a nosedive. Seeing a decline of nearly 20% in March endorsements, reverse mortgage volume fell to a level not seen since September, 2005, according to a report from Reverse Market Insight. It is a bumpy ride, RMI says, with nine out of 10 top-10 lenders seeing volume down in March.
Reverse mortgage tax and insurance defaults tapered slightly, FHA said. In the most recent book of business, HECM tax and insurance defaults are about half what they were in past books of business at the same point in time. Compared with a 3%-plus proportion for 2009-2010 books of business after several months’ time, the 2011 book of business is showing a rate of 1.5% so far. Overall, however, defaults are up as a total proportion of all loans outstanding, FHA reported.
NRMLA announced an initiative to develop new reverse mortgage disclosures. At its annual eastern regional conference, NRMLA execs announced they are working to develop new reverse mortgage disclosures they will submit to the CFPB for approval this year.
RMD wil be taking a hiatus on Friday for Easter weekend but we will see you back on Monday with more news and daily emails.
Written by Elizabeth Ecker