In case you missed it…here’s what happened in reverse mortgage news this week:
AARP filed another lawsuit regarding reverse mortgage foreclosures. The new lawsuit, a class action suit filed Wednesday against Wells Fargo and Fannie Mae, alleges that Wells Fargo has illegally foreclosed upon reverse mortgage borrowers who were not notified and were not given the opportunity to purchase the property for 95% of its appraised value after the loan becomes due and payable.
NRMLA moved forward on implementation of a HECM financial assessment for borrowers. NRMLA executives and industry participants came to a consensus that the association will spearhead the effort in advance of official guidance from the Department of Housing and Urban Development.
HECM endorsements fell in July. The decline indicated a weak second half of the year, according to Reverse Market Insight. July’s numbers, totaling 5,511 endorsements, were down 5.9% over June and fell 6.6% from their July 2010 total.
Additionally, Reuters reported that lender exits will bring volume down further. In the wake of the housing crash and exits from three of the largest reverse mortgage lenders, the industry is headed toward its third straight year of loan volume decline Reuters reported, with input from Reverse Market Insight.
The CFPB released another set of revamped mortgage disclosure drafts. The forms, which combine the Truth in Lending and Good Faith Estimate into a single document, are open for consumer and industry comment.
Written by Elizabeth Ecker