In case you missed it… here’s what happened in reverse mortgage news this week.
In a historic move, MetLife revealed its plans for a financial assessment for borrowers. In the moment we’ve all been waiting for, MetLife said the new financial assessment will go into effect on November 14. It’s largely based on three things: residual cash flow, credit history and principal limit usage (PLU), which is not to exceed 75% for standard borrowers.
…and other lenders said their financial assessments are not far behind. Generation, Security One and Genworth all told RMD that their financial assessments are forthcoming, although they have been mum on exactly what those assessments will look like.
…and counselors said the assessment could really shake things up. While “straightforward” for now, “In the future we will have to decide how counselors should advise seniors who appear not to meet the assessment standards,” MMI’s Daniel Fenton told RMD.
Then, Ginnie Mae posted its “best year ever” for earnings. Gaining 84% over last year’s earnings, GNMA reported a whopping $1.2 billion in profit for fiscal year 2011, this year passing Freddie Mac in the volume of mortgage backed securities that it has guaranteed, its executives said.
HUD announced that a reverse mortgage counseling exam will go live this month. Study up, counselors, The new exam administered under HUD will roll out on Monday, November 28. The current exam will be offered through November 27.
… and the CFPB’s chief official called reverse mortgages “ingenious.” Raj Date, CFPB’s acting chief said the agency is looking into reverse mortgages. “It’s one of these products that on its face is actually an ingenious thing,” he said. “The demographics look quite positive. There might be a real productive use for the product and its growth over time.”
Written by Elizabeth Ecker