JB Nutter Halts Forward Loans, No Effect on Reverse Mortgages

image Late last week, JB Nutter announced that it was halting all forward wholesale originations, due to its funding “bottleneck”.  ML Implode posted a copy of the email which was sent to brokers that said:

“From this point forward, James B. Nutter & Company will not be accepting registrations or files for “forward” mortgages any longer. We are withdrawing from the wholesale “forward” mortgage market. This would include all conventional, FHA, HUD 184 and VA loans.”

According to the email, JB Nutter will “continue working diligently to provide the best service available for our current “reverse” brokers and correspondents,” said Matthew L. Moore, Vice President.

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The company implemented a two week moratorium for new reverse mortgage submissions on January 9th, due to delays in obtaining reimbursements from its investors.  The moratorium was lifted and things seem to be back to normal for now.

Update, JB Nutter isn’t accepting new wholesale reverse mortgage submissions as of today, January 26th.

New Update here.

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  • I just got word that JB Nutter is eliminating 1160 out of 1200 of their wholesale correspondents with regards to reverse mortgage submissions. Why would they do this? The AE, who is a great guy, says their warehouse lines are being drastically reduced. What are we to do?

  • Nutter is NOT standing behind their word. It is common knowledge that Nutter requires, as all reverse mortgage lenders do…an FHA appraisal. You pay for and get your appraisal. Knowing that your property’s value is lower due to our economy…right? Oh…it is much worse than that. Nutter is not honoring the FHA appraisal that you pay for…nope…they cut them in half. That’s right folks…they do their own little estimate…forget what your appraisal says…they are rip off artist. Guess the corporate jet was paid for by YOU, the consumer…and the thirty five thousand dollar toilets…and their bonuses. Stealing homes is not what reverse mortgages was about. Most seniors got savvy in this computer age…and know that lenders of these loans have negotiable terms. Fixed rates too. Not anymore. The big banks can still close your reverse mortgage and honor your appraisal…but, guess what? Now…they want you to qualify. Was that in your video that you had to watch? Was that told to you by your counselor? Did they tell you that your appraisal would be honored…??? Some are asking for two appraisals…nice aren’t they? Pay for two? Oh…and one other small thing…You have to increase your insurance. Suprise suprise…I figured that there were some rotten tomatoes found in these types of loans…with sharks out there to take advantage of those that are confused enough about this type of loan. If you are going to get a reverse mortgage in today’s economy and can find one that stands behind the appraisal, the terms that you have negotiated, has the funds to close, won’t continue to ask for more data, dilly dally around for months when you need the money…etc etc etc…then get it in writing…signed. Don’t hold your breath. Better to sell your home…get your doe and buy a smaller home and pay cash and stick the proceeds in a fireproof, waterproof box and bury it in a location of your choice in the middle of the night. Banks are history…lenders are history…snakes are alive and well.

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