Since the reverse mortgage product is primarily aimed at seniors that are at least at the age of 62, reverse mortgage originators that serve as a primary point of contact to guide their clients through the loan process often understand that their jobs come with special senior-specific sensitivities that often need to be catered to.

While the holiday season is traditionally a time for people to reconnect with friends and family, some firms also use the season to express positive sentiment toward their clients in an effort to further build goodwill among them. Reverse mortgage originators, though, appear mixed on whether or not to conduct specific client outreach during the holidays, unsure whether or not it impacts their relationships with clients.

Continue reading →

Because of losses that the Federal Housing Administration (FHA) estimates for the Home Equity Conversion Mortgage (HECM) program in 2019, FHA should release more loan-level data on the reverse program, as well as separate the HECM program from the forward mortgage program in the calculation of statutory minimum ratios. This is according to a blog post released by the Urban Institute on Tuesday written by Laurie Goodman and Edward Golding.

The blog post predicts four trends for FHA in 2019. The final trend addresses the reverse mortgage program, and offers two initial signs of positivity in it overall: type 1 claims that represent losses from disposing properties backing mortgages declined from $677 million to $612 million, and recoveries are increasing.

Continue reading →

Senior homeowners saw an increase in their housing wealth of 1.4 percent between Q2 and Q3 2018. This, according to the National Reverse Mortgage Lenders Association’s quarterly release of the NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI) on Tuesday.

The 1.4 percent increase results in a gain of $97 billion to senior home wealth over the second quarter, with the RMMI rising to 251.57. This represents another all-time high for the index since it began publication in 2000. The release of the RMMI attributes the gain to, “an estimated 1.3 percent or $115 billion increase in senior home values and offset by a 1.1 percent or $17.4 billion increase of senior-held mortgage debt,” said the accompanying statement.

Continue reading →

National appraisal management company Class Valuation has acquired Landmark Network as of Friday, the companies have announced. Landmark, based in Van Nuys, California, has long been a leader in the reverse mortgage space through its real estate appraisal offerings, and Class identified the opportunity in Landmark based on its presence in the growing baby boomer market.

“As we continue to execute our innovation strategy, we will take great interest in those firms that excel in service and reputation in markets we believe in,” said Scot Rose, chief innovation officer for Detroit-based Class Valuation, in a press release. “Landmark is a leader in a market that we expect to grow as Baby Boomers look for options to carry them through retirement. In addition, the company has a strong leadership team and the proven ability to support niche products. That’s the kind of specialization and expertise we’re seeking as we continue to expand our footprint.”

Continue reading →

Late last week, the U.S. Department of Housing and Urban Development (HUD) announced changes in the lending limit for federally-backed reverse mortgages, with the new maximum claim amount for 2019 set at $726,525. This represents both an increase for a third consecutive year, and a welcome development for many reverse mortgage originators who have contended with changes to principal limit factors handed down to the Home Equity Conversion Mortgage (HECM) program in October, 2017.

“This increase can only help folks who have higher home values and a large mortgage. Now there will be more people who will qualify for a HECM since there will be enough Net Principal Limit to pay off their mortgages,” said industry expert Shelley Giordano of the Funding Longevity Task Force at the American College of Financial Services.

Continue reading →

Pamela H. Patenaude, the deputy secretary of the U.S. Department of Housing and Urban Development (HUD) under Secretary Ben Carson, resigned from her position on Monday, which will go into effect sometime in early 2019.

“Serving at HUD as Deputy Secretary has been the highlight of my 35-year career in housing,” Patenaude said in a statement announcing her resignation via Twitter. “[My husband] Chuck and I look forward to returning to our home state of New Hampshire where I will continue to promote the president’s agenda to make this nation stronger and more prosperous for every American.”

Continue reading →

Mick Mulvaney, former acting director the Consumer Financial Protection Bureau (CFPB), will be named acting White House Chief of Staff according to a Friday tweet by President Donald J. Trump.

“I am pleased to announce that Mick Mulvaney, Director of the Office of Management & Budget, will be named Acting White House Chief of Staff, replacing General John Kelly, who has served our Country with distinction,” the president wrote. “Mick has done an outstanding job while in the Administration. I look forward to working with him in this new capacity as we continue to MAKE AMERICA GREAT AGAIN!”

Continue reading →