In case you missed it…here’s a recap of reverse mortgage news this week:
Financial Freedom announced it will close its doors: Parent company OneWest said it would close its reverse mortgage business, shutting down Financial Freedom by the end of the month. The company will continue to service loans, but will close retail and wholesale origination operations.
Reverse applications were up 10% in February: Reverse mortgage applications increased to 8,149 units during February, up 10.2% from the previous month and up 22.7% from the same period last year. HECM Saver volume also increased, reaching 296 units during the month, an increase of 79.4%.
HUD issued guidance to comply with RESPA and Fed’s loan officer compensation rule: The guidance sought to clarify RESPA requirements related to proper disclosure on the GFE and HUD-1 settlement statement, but did not address loan officer compensation directly.
CFPB leader Elizabeth Warren said the agency will consolidate TILA and RESPA documents: Speaking before the Independent Community Bankers Association, Warren said the changes should also help cut down on regulatory costs for small banks and help consumers understand the terms.
...and The Fed responded to loan officer compensation lawsuits from NAMB and NAIHP: The response denied the claim of both associations that the rule would cause imminent, irreparable harm to loan officers and their businesses.
Written by Elizabeth Ecker