June 17th, 2013 | by Elizabeth Ecker Published in News, Reverse Mortgage | 12 Comments
Following the April 1 suspension of the fixed rate standard reverse mortgage, the lending community says it is seeing far fewer applications for new loans.
With some of the fallout to be expected following the change, the most recent data available from the Department of Housing and Urban Development indicates applications for April and May are well below their pre-April 1 levels.
June 17th, 2013 | by Jason Oliva Published in News, Reverse Mortgage
A U.S. Senate subcommittee will hold a hearing Tuesday to discuss the sustainability of the reverse mortgage program.
The Senate Subcommittee on Housing, Transportation, and Community Development will meet in an open session for its hearing “Long Term Sustainability for Reverse Mortgages: HECM’s Impact on the Mutual Mortgage Insurance Fund (MMIF).”
Sen. Robert Menendez, chairman of the Subcommittee, will chair the hearing to be held at 10:00 AM (EDT) in Room 538 of the Dirksen Senate Office Building.
June 17th, 2013 | by Alyssa Gerace Published in News, Ocwen, Reverse Mortgage
Mortgage servicer Ocwen Financial Corp. (NYSE:OCN) announced in an 8-K filing last Thursday its plans to buy Pasadena, Calif.-based OneWest Bank’s mortgage servicing rights for $2.5 billion.
Ocwen, based in Atlanta, Ga., plans to buy $78 billion in unpaid principal balances of mortgage servicing rights using a combination of cash and available credit in a deal expected to close during the second half of 2013.
OneWest has assets of about $25 billion and was founded in 2009, the same year it acquired the failed Independent National Mortgage Corporation (IndyMac Bank). IndyMac had acquired Financial Freedom, a reverse mortgage originator and server, in July 2004. When OneWest acquired IndyMac, it also acquired Financial Freedom, which it later shut down in 2011 after OneWest exited the wholesale reverse mortgage origination business.
June 17th, 2013 | by Elizabeth Ecker Published in News, Reverse Mortgage | 5 Comments
Following changes to the language regarding the non-recourse nature of reverse mortgages under the Federal Housing Administration’s Home Equity Conversion Mortgage program, language for counselors and lenders has been updated officially.
In April, 2011, the agency published Mortgagee Letter 2011-16 to rescind guidance issued in 2008 to clarify its non-recourse policy on reverse mortgages insured by the Federal Housing Administration. The change came following a lawsuit filed by AARP against the Department of Housing and Urban Development regarding the policy.
HUD has updated its handbook to reflect that reverse mortgage loans are non-recourse, meaning that a borrower and his or her heirs or estate will only be responsible for repaying 95% of the appraised home value, rather than the loan balance if that balance is greater than the home’s worth at the time of sale.
June 16th, 2013 | by Elizabeth Ecker Published in News, Reverse Mortgage
Cherry Creek Mortgage Co.’s reverse mortgage division announced on Friday the appointment of Patricia L. Kauker as corporate training coordinator as part of the company’s efforts to increase Home Equity Conversion Mortgage (HECM) for Purchase education.
Kauker will be responsible for managing and cultivating the 1st Reverse Mortgage USA Training and Development Program and will also facilitate professional development curricula and training materials.
June 16th, 2013 | by Elizabeth Ecker Published in News, Reverse Mortgage
Florida Congresswoman Ileana Ros-Lehtinen (R-FL) stated her support for reverse mortgage reforms following the passage of the Reverse Mortgage Stabilization Act, approved by the House of Representatives last week.
The bill allows the Department of Housing and Urban Development to make program changes via mortgagee letter including caps to upfront draws and mandatory escrows in an effort to protect borrowers and the Federal Housing Administration’s Mutual Mortgage Insurance Fund.
The House passed the bill last week by unanimous consent after receiving bipartisan support and sponsorship by Reps. Michael Fitzpatrick (R-PA) and Denny Heck (D-WA). A companion bill has been introduced in the Senate by Senator Robert Menendez (D-NJ).
June 14th, 2013 | by Jason Oliva Published in News, Reverse Mortgage
Americans today are nearly as likely to report a great deal of confidence in banks as those who do not, according to a recent Gallup poll.
Americans’ confidence in U.S. banks increased to 26% in June, up from the record low of 21% a year ago.
June 14th, 2013 | by Jason Oliva Published in News, Reverse Mortgage
In case you missed it…here’s what happened in reverse mortgage news this week.
Reverse mortgage stabilization bill passes House. The bill’s passing in the House brings the Department of Housing and Urban Development (HUD) one step closer to making changes to its Home Equity Conversion Mortgage (HECM) program.
ARM product shift could signal the return of origination fees. A shift in adjustable rate products has the industry wondering if origination fees could be making a comeback to boost loan revenues.
