According to the press release, actions were taken against First Call Mortgage Company, Inc., Sun West Mortgage Company, Inc., and Gold Reverse, Inc. who were making reverse mortgage loans to Massachusetts seniors without an approved plan from the state.  All three companies have been prohibited from accepting any new mortgage applications and have been ordered to place all pending applications with a qualified lender at no cost to the consumer.

The Division also issued a cease and desist order against American Advisors Group, for engaging in unfair and deceptive advertising practices involving reverse mortgage products. American Advisors Group engaged in a direct mail campaign in which reverse mortgage loans were marketed as government benefits.  You can see a copy of the mailing here.

The Division’s order forbids American Advisors Group from initiating any new mortgage loan transactions and requires pending applications to be placed with a qualified lender or broker at no cost to the consumer.  In addition, the company has been ordered to cease its advertising in Massachusetts and provide the Division with a complete list of all individuals that its direct mail advertisements were sent to.

State Division of Banks Takes Action Against Illegal Reverse Mortgage Programs Targeting Seniors

Technorati Tags: Reverse Mortgage,News,Fraud,HECM,FHA,HUD,Massachusetts

Gold Reverse’s Jumbo was a fixed product available in California, Florida, and Nevada.  I’ve heard from several RMD readers that it was one of the most competitive jumbos available.

As the credit markets continue to get worse, we will need to rely on the new FHA loan limits which should help offset some of the need for a jumbo product.  I’ve spoken with several originators who have been offering the REX and EquityKey product as an alternative because jumbo products have become less competitive than before.

Below is a list of lenders that are still offering jumbo products through their wholesale channels:

• LLS Equity Plus Advantage – Available in AL, AZ, CA, CO, CT, DC, FL, IL, LA, ME, MD, MI, MS, MO, NJ, NM, NC, NY, NV, OH, OR, PA, SC, TC, and VA.
• EverBank Reverse Select – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.
• 1st Reverse Fixed 4 Life – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.

If I forgot anyone let me know.

• Gold Reverse Jumbo – Available in CA, FL, and NV.
• LLS Equity Plus Advantage – Available in AL, AZ, CA, CO, CT, DC, FL, IL, LA, ME, MD, MI, MS, MO, NJ, NM, NC, NY, NV, OH, OR, PA, SC, TC, and VA.
• EverBank Reverse Select – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.
• 1st Reverse Fixed 4 Life – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.

If I forgot anyone please let me know.  Remember, this list doesn’t include retail lenders offering jumbo reverse mortgages.

Technorati Tags: Reverse Mortgage,Jumbo Reverse Mortgage,HECM,News,Financial Freedom

Many loan originators have begun having to originate two reverse mortgages at the time of application never knowing if one lender will keep their product in the market place versus the other. With a number of wholesalers reselling the same proprietary product on Wall Street, originators and borrowers are limited in their choices for these products. It doesn’t seem reassuring to a senior to hear that since you don’t know if a product will be around thirty days later they better sign two sets of documents just in case….kind of scary. Being prudent in this case may make a senior more nervous about their reverse mortgage, the housing market, and Wall Street lenders. Hopefully, we won’t be ordering a triple.

Here are the jumbos that I know of which are still available (these are wholesale states only):

• Gold Reverse Jumbo – Available in CA, FL, WA, NV 
• LLS Equity Plus Advantage – Available in AL, AZ, CA, CO, CT, DC, FL, IL, LA, ME, MD, MI, MS, MO, NJ, NM, NC, NV, OH, OR, PA, SC, TC, VA, and WA.
• EverBank Reverse Select – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.
• 1st Reverse Fixed 4 Life – Available in AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IL, IN, MD, NV, NH, NJ, NY, OH, OR, PA, RI, SC, TX, UT, VA, and WA.

What about the Cash Account?  Not sure, I’m hearing it’s being pulled but all of my former contacts at Financial Freedom no longer work there and the other contacts I have wont respond to me… including their PR company and Executives… so I’m thinking it might be true.

Countrywide Simple Equity is apparently dead too… no one from CW wants to talk to me when they are pulling products

I did get confirmation from Bank of America that the Independence plan is suspended but there other proprietary products are still active… once I get more information on them I will be sure to post about it.

Unlike your typical HECM loan, the Gold Reverse program doesn’t charge the borrower any mortgage insurance premiums and there are no servicing set aside fees.  The product also allows for a conventional appraisal from any licensed appraiser rather than an FHA appraisal.  Below are some more details on the product:

Gold Reverse Product Details

• Product Type – Fixed Rate
• Minimum Age – 60
• Index – 60 day FNMA Mandatory
• Margin – 250bp
• Rate as of 1/7/08 = 8.5%
• No mortgage insurance premium
• No servicing set aside
• Loan amounts- Min = $150,000 Max = $2,000,000
• Purchase or Refinance
• Property Type – Single Family, Condos, 2-4 Unit, modular homes
• Draw Options – 100% must be withdrawn at closing
• Broker Fee – 2% of principal limit
• Gold Reverse Admin Fee – $575 paid by borrower
• Currently only available in California, more states coming soon.

If you are looking to run some numbers you can login with the information below at https://www.ibisrmo.com

Private Label:  PCM
Login:  GOLD
Password:  REVERSE08 (yes, these are all caps)

In the end the product is designed to give the borrower the maximum amount of money with the comfort of a fixed rate.  For more information about the company check out the link below.

Gold Reverse Mortgage

Technorati tags: Reverse Mortgage, Reverse Mortgage News, Jumbo Reverse Mortgage, Gold Reverse