Friday Round-Up: Applications Fall, Coalition Brings HECM Support to Washington

In case you missed it, here’s what happened in reverse mortgage news this week.

HECM applications fell 12.7% in July, but the Saver remained stable. Total applications fell to 7,639 in July, posting a year-over-year loss of 14.8%. HECM Saver volume showed its first monthly loss, but as a percentage of total HECMs, the Saver is still on the upswing, capturing 9% of volume in July.

California took further steps against cross-selling. On August 18, the California legislative branch passed a law in an attempt to further harness cross-selling. It is now awaiting the expected approval signing by the governor. The bill attempts to prohibit specified activities and prevent insurance producers from receiving compensation in specified sales situations.

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A reverse mortgage coalition told RMD about its recent visit to policymakers in Washington. The Coalition for Independent Seniors had 17 meetings at the Capitol before the summer recess, where the group stressed the importance of reverse mortgages in the coming years as well a the need to restore funds for HECM counseling.

An Ibis report showed 10% of future HECMs could lose out if loan limits fall at year-end. Announced last week, the higher HECM loan limits determined by the Federal Housing Administration have been extended through calendar year 2011. If they come down, Ibis said, 10% of HECMs could be impacted.

The deadline for an appraisal industry overhaul was extended. The deadline for HUD’s implementation of new Uniform Appraisal Dataset (UAD) requirements has been pushed back to January 1, according to Mortgagee Letter 2011-30, released on Monday. Fannie Mae’s implementation date stands.

Generation Mortgage announced new leadership and retail organization. Generation will operate two retail hubs located in New York and California, and has appointed new leadership to oversee them.

Written by Elizabeth Ecker

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  • NRMLA just came out with notice from the author of the California law.  While it is helpful, one must realize that it is the opinion of the author of the bill and not all those voting on the related bill.  Its timing makes its far less valuable than if it had gone on the record just before the bill was passed by the Assembly in May.

    Like interpretation of the HERA cross-selling provisions is now in the hands of FHA, the ultimate interpretation of California Civil Code Section 785.1 will be in the hands of the California Department of Insurance once the Governor signs it.  Hopefully they will use the letter from Assemblyperson Eng when implementing the new law.

  • NRMLA just came out with notice from the author of the California law.  While it is helpful, one must realize that it is the opinion of the author of the bill and not all those voting on the related bill.  Its timing makes its far less valuable than if it had gone on the record just before the bill was passed by the Assembly in May.

    Like interpretation of the HERA cross-selling provisions is now in the hands of FHA, the ultimate interpretation of California Civil Code Section 785.1 will be in the hands of the California Department of Insurance once the Governor signs it.  Hopefully they will use the letter from Assemblyperson Eng when implementing the new law.

  • NRMLA just came out with notice from the author of the California law.  While it is helpful, one must realize that it is the opinion of the author of the bill and not all those voting on the related bill.  Its timing makes its far less valuable than if it had gone on the record just before the bill was passed by the Assembly in May.

    Like interpretation of the HERA cross-selling provisions is now in the hands of FHA, the ultimate interpretation of California Civil Code Section 785.1 will be in the hands of the California Department of Insurance once the Governor signs it.  Hopefully they will use the letter from Assemblyperson Eng when implementing the new law.

  • NRMLA just came out with notice from the author of the California law.  While it is helpful, one must realize that it is the opinion of the author of the bill and not all those voting on the related bill.  Its timing makes its far less valuable than if it had gone on the record just before the bill was passed by the Assembly in May.

    Like interpretation of the HERA cross-selling provisions is now in the hands of FHA, the ultimate interpretation of California Civil Code Section 785.1 will be in the hands of the California Department of Insurance once the Governor signs it.  Hopefully they will use the letter from Assemblyperson Eng when implementing the new law.

  • No doubt the worst news of the week was low HECM application numbers.  Responsible endorsement projections for this calendar year and next fiscal year look as if they will be further eroding.

    All of this was anticipated with the dropping out of the Wells, B of A, and Financial Freedom.  If things go as expected, the lower numbers should have no impact on originators or lenders, other than those originators who were dependent on the branch systems in effect particularly at the Big Two.

    Most of the Top Forty lenders should be gearing up for a better fiscal 2012 than 2011 and originators should be busy finding the 42% that was vacated by the Big Two.  This is not the time to be looking at the housing mess but rather looking for the opportunities vacated by others.

    I maybe an unabashed cynic but I am no pessimist.

  • Have you heard that Fannie Mae pushed back the UAD deadline?  NOT TRUE. UAD is still a go for next Thursday.   That Mortgagee Letter is ONLY for HUD’s  delay in implementation.This is what Bob Murphy (who heads Fannie’s UAD program) had to say to Valuation Review,

    “…Jan 1, 2012, effective date is the adoption date for FHA. Fannie Mae is still going forward with its Sept. 1 date, as of today.”

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