In case you missed it…here’s what happened in reverse mortgage news this week:
MetLife Inc. announced its intentions to sell its bank company. The decision comes from increasing regulation and bank scrutiny under Dodd-Frank, the company said. MetLife said it plans to continue offering residential mortgages through its MetLife Home Loans business, although a non-bank structure would mean the company’s loan originators are subject to state licensing requirements.
AARP’s reverse mortgage lawsuit against HUD was dismissed. The lawsuit filed by AARP against the Department of Housing and Urban Development concerning three reverse mortgage borrowers facing foreclosure has been dismissed by the Court, without prejudice, meaning that AARP can seek further action in the case. The case may be dismissed, but the Court has yet to rule as to whether HUD’s interpretation of the HECM statute was permissible or correct.
Subsequently…HUD issued new HECM servicing FAQs. The FAQs include new guidelines regarding the sale of a HECM property after the borrower has left the home or passed away. The borrower’s heirs may now satisfy the HECM debt by paying the lesser of the mortgage balance or 95% of the current appraised value of the property, as stated in the FAQ.
A new FTC rule banned deceptive mortgage ad practices. The new rule bans deceptive claims about consumer mortgages, both “forward” and reverse, in advertising and other commercial communications. (View the rule here.)
HECM applications rose in June, and the Saver saw a rebound. HECM applications saw a 17% increase in June and Saver endorsements rebounded during the month, nearing 9% of all endorsements. Saver market share has increased steadily since the beginning of 2011.
President Obama (finally) nominated a CFPB chief. After much anticipation and speculation, Richard Cordray, the bureau’s chief of enforcement, got the nod on Monday, and the CFPB opened its doors four days later on July 21.
And finally…RMD launched its first-ever industry awards contest! We are accepting nominations through Monday, July 25. Voting begins Wednesday, July 27. Visit the RMD Awards site to nominate your company for the “best of” its kind…before time runs out!
Written by Elizabeth Ecker