HUD Meeting With Servicers, HECM Taxes and Insurance Default Guidance Coming

The Department of Housing and Urban Development (HUD) is scheduled to meet with reverse mortgage servicers in Washington on Tuesday to discuss taxes and insurance defaults according to several people briefed on the meeting.

The gathering comes less than two weeks after an audit by the HUD Office of Inspector General found nearly 13,000 HECM loans were in default from failure to pay taxes and insurance.

The agency is expected to issue formal and clear guidance for handling the defaults within the next 30 days according to Vicki Bott, HUD deputy assistant secretary.  ”We certainly have to evaluate the delinquencies and capabilities of seniors to get on valid prepayment plans,” she said in an interview with National Mortgage News (NMN) last week.

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According to the HUD OIG report, the agency routinely granted foreclosure deferrals because it was unwilling to foreclose on senior citizen borrowers.  HUD claimed it was developing policy on how to handle the loans, but had not given servicers procedures for curing the defaults.  As a result, servicers held the loans and paid borrower’s taxes and insurance premiums totaling more than $35 million.

When HUD publishes the guidance, servicers and counselors are expected to seek the support of local government officials and family members to help seniors get back on track.

Additionally, NMN says that FHA wants to adopt policies to prevent seniors from getting into HECM loans if they do not have the long term resources to make T&I payments.  These policies would be issued as part of a proposed rule for public comment.

HUD has hinted for some time that a credit underwrite for reverse mortgage borrowers is a possibility, so it wouldn’t come as a shock to the industry.  Lenders would be required to conduct a financial assessment of borrowers to ensure they have the ability to meet the financial obligations of the HECM.  If necessary, the lender may require borrowers to set up an additional set aside to meet those obligations.

During a time of shrinking principal limits, an additional set aside would decrease the amount of funds available to borrowers, but it could be necessary to limit the number of HECM t&i defaults.

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  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

  • So that industry leaders can sleep well at night, this comment is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rn
    It seems the new HUD regime has a much better approach to HECMs.rn
    1.tHUD wants seniors to start with counseling.rn
    2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn
    3.tBecause the information borrowers supply to counselors is not required to be truthful, originators will be required to gather the same exact information all over again under penalties for perjury.rn
    4.tUnderwriting will want verification of some information.rn
    So why not save time and concern. Letu2019s require seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before receiving counseling. Besides eliminating all the duplicative information gathering, it will have the additional effect of employing more auditors (full disclosure — some friends need work). The audit requirement will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rn
    In achieving this objective, the industry will only need 159 lenders (viable choice of lenders and all of that) and they will only need to share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rn
    I know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, that is why there are 94 full-time underwriters. The underwriters will come to the rescue by requiring so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case). The true beauty of this new way of doing business is that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary and pesky new product.rn
    Finally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rn
    With my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

  • So that industry leaders can sleep well at night, this comment is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rn
    It seems the new HUD regime has a much better approach to HECMs.rn
    1.tHUD wants seniors to start with counseling.rn
    2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn
    3.tBecause the information borrowers supply to counselors is not required to be truthful, originators will be required to gather the same exact information all over again under penalties for perjury.rn
    4.tUnderwriting will want verification of some information.rn
    So why not save time and concern. Letu2019s require seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before receiving counseling. Besides eliminating all the duplicative information gathering, it will have the additional effect of employing more auditors (full disclosure — some friends need work). The audit requirement will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rn
    In achieving this objective, the industry will only need 159 lenders (viable choice of lenders and all of that) and they will only need to share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rn
    I know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, that is why there are 94 full-time underwriters. The underwriters will come to the rescue by requiring so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case). The true beauty of this new way of doing business is that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary and pesky new product.rn
    Finally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rn
    With my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

  • So that industry leaders can sleep well at night, this comment is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rn
    It seems the new HUD regime has a much better approach to HECMs.rn
    1.tHUD wants seniors to start with counseling.rn
    2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn
    3.tBecause the information borrowers supply to counselors is not required to be truthful, originators will be required to gather the same exact information all over again under penalties for perjury.rn
    4.tUnderwriting will want verification of some information.rn
    So why not save time and concern. Letu2019s require seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before receiving counseling. Besides eliminating all the duplicative information gathering, it will have the additional effect of employing more auditors (full disclosure — some friends need work). The audit requirement will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rn
    In achieving this objective, the industry will only need 159 lenders (viable choice of lenders and all of that) and they will only need to share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rn
    I know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, that is why there are 94 full-time underwriters. The underwriters will come to the rescue by requiring so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case). The true beauty of this new way of doing business is that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary and pesky new product.rn
    Finally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rn
    With my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

  • So that industry leaders can sleep well at night, this comment is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rn
    It seems the new HUD regime has a much better approach to HECMs.rn
    1.tHUD wants seniors to start with counseling.rn
    2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn
    3.tBecause the information borrowers supply to counselors is not required to be truthful, originators will be required to gather the same exact information all over again under penalties for perjury.rn
    4.tUnderwriting will want verification of some information.rn
    So why not save time and concern. Letu2019s require seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before receiving counseling. Besides eliminating all the duplicative information gathering, it will have the additional effect of employing more auditors (full disclosure — some friends need work). The audit requirement will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rn
    In achieving this objective, the industry will only need 159 lenders (viable choice of lenders and all of that) and they will only need to share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rn
    I know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, that is why there are 94 full-time underwriters. The underwriters will come to the rescue by requiring so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case). The true beauty of this new way of doing business is that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary and pesky new product.rn
    Finally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rn
    With my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

  • So that industry leaders can sleep well at night, this comment is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rn
    It seems the new HUD regime has a much better approach to HECMs.rn
    1.tHUD wants seniors to start with counseling.rn
    2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn
    3.tBecause the information borrowers supply to counselors is not required to be truthful, originators will be required to gather the same exact information all over again under penalties for perjury.rn
    4.tUnderwriting will want verification of some information.rn
    So why not save time and concern. Letu2019s require seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before receiving counseling. Besides eliminating all the duplicative information gathering, it will have the additional effect of employing more auditors (full disclosure — some friends need work). The audit requirement will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rn
    In achieving this objective, the industry will only need 159 lenders (viable choice of lenders and all of that) and they will only need to share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rn
    I know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, that is why there are 94 full-time underwriters. The underwriters will come to the rescue by requiring so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case). The true beauty of this new way of doing business is that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary and pesky new product.rn
    Finally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rn
    With my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

  • So that industry leaders can sleep well at night, this comment is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rn
    It seems the new HUD regime has a much better approach to HECMs.rn
    1.tHUD wants seniors to start with counseling.rn
    2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn
    3.tBecause the information borrowers supply to counselors is not required to be truthful, originators will be required to gather the same exact information all over again under penalties for perjury.rn
    4.tUnderwriting will want verification of some information.rn
    So why not save time and concern. Letu2019s require seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before receiving counseling. Besides eliminating all the duplicative information gathering, it will have the additional effect of employing more auditors (full disclosure — some friends need work). The audit requirement will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rn
    In achieving this objective, the industry will only need 159 lenders (viable choice of lenders and all of that) and they will only need to share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rn
    I know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, that is why there are 94 full-time underwriters. The underwriters will come to the rescue by requiring so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case). The true beauty of this new way of doing business is that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary and pesky new product.rn
    Finally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rn
    With my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

  • So that industry leaders can sleep well at night, this comment is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rn
    It seems the new HUD regime has a much better approach to HECMs.rn
    1.tHUD wants seniors to start with counseling.rn
    2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn
    3.tBecause the information borrowers supply to counselors is not required to be truthful, originators will be required to gather the same exact information all over again under penalties for perjury.rn
    4.tUnderwriting will want verification of some information.rn
    So why not save time and concern. Letu2019s require seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before receiving counseling. Besides eliminating all the duplicative information gathering, it will have the additional effect of employing more auditors (full disclosure — some friends need work). The audit requirement will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rn
    In achieving this objective, the industry will only need 159 lenders (viable choice of lenders and all of that) and they will only need to share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rn
    I know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, that is why there are 94 full-time underwriters. The underwriters will come to the rescue by requiring so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case). The true beauty of this new way of doing business is that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary and pesky new product.rn
    Finally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rn
    With my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • When is HUD going to start helping seniors who live in co-ops avoid foreclosure or forced sales, through no fault of their own, to get help by implementing the HECM for co-ops that was promised 2+ years ago? When do we get our relief?

  • So that industry leaders can sleep at night, this is all tongue in cheek. Maybe I have just seen Jackie Mason, Don Rickles, Jon Stewart, Bill Maher, and yes, Kathleen Mary (Kathy to her friends) Griffin a few too many times, or just need some Catskill therapy. Well, here goes nothing.rnrnIt seems HUD has new regime with a much better approach to HECMs.rnrn1.tHUD wants seniors to start with counseling.rn2.tSeniors are now required to take FIT and most, BCU as part of counseling.rn3.tBecause the information counselors receive is not required to be truthful, originators will be required to gather the same information all over again.rn4.tUnderwriting will want verification of some information.rnrnWhy not save time and concern. Letu2019s require the seniors to get audited personal financial statements from independent NYC or Studio City/Encino CPAs before meeting with anyone. This will have the additional effect of employing more auditors (full disclosure — some friends need work). This will eliminate all those pesky seniors who just think they need the loan since no reputable CPA can perform an audit if their fee is dependent upon receiving a loan. To help really, really needy seniors, the IRS can be asked to review the data before the CPAs start their work; having the IRS involved will reduce the perception of the intrusive nature of the BCU. rnrnNow the industry only needs 159 lenders and they can now share two part-time originators, one processor, and ninety-four full-time underwriters. Of course, we will need 6,000 overworked counselors to screen out potential borrowers. HUD will save money because they can reduce man hours to monitor the HECM program down to just 100,000 to 500,000 man hours per year (i.e., 50 to 250 full-time employees to finish the coop mortgagee letter, coordinate activities with the IRS, review ads, track u201ctechnicalu201d foreclosures, etc.).rnrnI know some may be concerned that more seniors will get through the system than planned or desired. Not to worry, underwriters will require so much in set asides for Taxes, Insurance, and, yes, they will figure how to add Maintenance to set aside requirements (thus the need for so many underwriters — you know just in case), that all HECM Savers will have negative Net Principal Limits before any mortgage or lien payoffs, thus ridding us of that unnecessary headache.rnrnFinally, seniors will be getting the finances they REALLY need. Truly a new and better day has dawned. It is reassuring to learn that THE GOAL of helping seniors meet their true financial needs in retirement will now finally be fully realized. rnrnWith my anxiety and concern now evaporated, I guess I will not need the healing powers of the Catskills after all, just my psychiatrist, four psychologists, and three therapists.rn

  • Perhaps a credit underwrite should not come as a shock to the industry, but (and it is a big but) where will seniors who are in foreclosure, don’t have the money to move out, don’t have the money to find a place to stay, have maxed all their credit cards trying to make ends meet because SS payments and Medicare benefits are not keeping up with the rising costs of food, gas, utilities, and medical care, where will they find help? I am sickened that only those seniors who aren’t in trouble may be able to keep out of trouble, and then only if underwriters who look at the black and white of the situations say they can. nnI always thought Congress got involved in the HECM loan product because they saw reverse mortgages as a fairly painless way to supplement the decreases in SS and Medicare benefits. The article on the Taiwan government speaks about commercializing reverse mortgages. I think the reason is there multi-generational households are not so rare. Here, of course, they are becoming more common, and seniors who should be resting from their labors now shoulder a heavy burden for the sake of their families. It seems our government has decided to give up on the generation that is holding together the fabric of our country.nnBeware of the government bean counters. They are killing off Social Security, Medicare and even reverse mortgages.nn

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