Friday Round-Up: BofA Sells Reverse Mortgage Servicing, Google Mortgage Leads Shut Down

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

Bank of American sold off the very last of its reverse mortgage businesses. The former No. 2 reverse mortgage lender agreed to sell roughly $18 billion in servicing rights for reverse mortgages to Nationstar Mortgage for approximately $25 million. The deal which is subject to purchase price adjustments and is expected to close on December 22, 2011, according to a Securities Exchange Commission filing.

First National Bank of Layton launched a new production center. The bank has launched a new reverse mortgage production center in Kennesaw, Georgia, with the help of Joe Morris, Generation Mortgage founder and longtime reverse mortgage executive. The company is hiring for the new production center.

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Carol Galante inched closer to a permanent post as FHA commissioner. A Senate committee voted in favor of Galante’s nomination, 13-9. Senate Republicans, however, have said they will block her nomination when it comes to a full senate vote, citing uncertainty with the health of FHA and the potential need for a taxpayer bailout.

Google was forced to shut down the vast majority of its mortgage comparison ads. Google has been allowing users to search for mortgage products through its Google Advisor search platform, and now has cut all but five states from its mortgage search capabilities after coming under examination from state regulators who found Google lacks the proper licensing.

…and check out the Lender Blender short YouTube film from Mortgage Cadence, featuring a new “Hoarders” edition, for a glimpse at what could happen if you let documentation storage get the best of you.

Written by Elizabeth Ecker

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  • The video from Lender Blenders is interesting.  However, as a lawyer, I would be concerned about getting rid of paper copies.  They should be stored and accessible.  (Not in someone’s office, of course, but still appropriately kept.)

    Sure, I know all of the arguments as to why paperless is so much better, but if you are going to court, you need paper.  Judges, lawyers, and juries want to see real paper.  I can tell you that if a bank came in with paperless copies and said, “Your Honor, this is the best evidence left because we destroyed the originals to save room,” that I would be coming in saying “Your Honor, since they destroyed the evidence of the indebtedness, and we do not have the originals due to their deliberate negligence, it stands to reason that in destroying the evidence of indebtedness that they also gave up their rights in collecting the loan, the most they can go for is unjust enrichment, not the enforcement of the terms of a loan that they can no longer prove existed except through copies.”  I might not win, but then again I might.  Would you really want to explain my win to your share holders?

    Now don’t get me wrong, imaged documents are very useful for the normal transaction of business and of document flow within a lending institution, but they are no substitute for having the originals safely stored and cared for in case you have to go to court.

    Frank J. Kautz, II
    Staff Attorney

    Community Service Network, Inc.
    52 Broadway
    Stoneham, MA 02180
    (781) 438-1977
    (781) 438-6037 fax
    FrankKautz@csninc.org –work
    Frank@Kautzlaw.com –private

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