In case you missed it…here’s a recap of reverse mortgage news this week:
HUD lost its housing counseling funding. In a move to avoid a government shutdown, a budget deal cut funding for Housing and Urban Development reverse mortgage counseling programs. The cuts will have a big impact on seniors interested in reverse mortgages, since HUD guidelines require borrowers go through HECM counseling before moving forward with the loan.
Two House Democrats sought HECM changes. In a March 24 letter (obtained by RMD this week) addressed to Department of Housing and Urban Development Secretary Shaun Donovan, Rep. Barney Frank and Rep. Luis Guitierrez urged the agency to change its policies regarding reverse mortgage loans. The letter doesn’t specifically name the AARP lawsuit against HUD, but it addresses the same issues.
Wholesale reverse mortgage lending outperformed retail lending in February. According to data complied by Reverse Market Insight, wholesale endorsement growth posted a 16.2% gain in February, in contrast to a 0.6% gain for retail endorsements. The trend continues, following wholesale growth in January.
A member of the Senate urged the delay of Dodd-Frank implementation. In a letter sent to Treasury Secretary Tim Geithner, Sen. Orrin Hatch (R-Utah), ranking member of the Senate Finance Committee, urged the Treasury to delay Dodd-Frank implementation, citing reasons of international concern and consistency.
…and CFPB leader Elizabeth Warren announced the agency would partner with state officials. Warren, who is currently heading up the new bureau in preparation of its July 21 launch, spoke of a new “joint statement of principles” on Monday, outlining the cooperation between the CFPB and state officials.
Written by Elizabeth Ecker