In case you missed it…here’s a recap of reverse mortgage news this week:
It looks like reverse mortgage lender competition has hit rock bottom: The number of FHA-approved lenders has dipped below 300, after declining from about 600 just one year ago. The question is, will the lack of competition turn out to be bad or good for the industry?
Loan officers may be in for still more complications when it comes to compensation: Lenders already experienced a shake-up when a new loan officer compensation rule went into effect, and the system might change again, now that the Consumer Financial Protection Bureau has gained authority. Companies are now subject to the CFPB’s determination of anything that falls under “unfair or deceptive” in terms of lending practices—including compensation.
Fox News might want to consider brushing up on its reverse mortgage “facts”: In a recent article seeking to answer the question “Who should do a reverse mortgage?”, the news outlet lists some incorrect reverse mortgage information, including that borrowers could receive up to the full value of their home.
How will an investor modeling tool affect the reverse mortgage secondary market? CitiGroup is reportedly including HECM mortgage-backed securities in its Yield Book—will this change the way the secondary market views these investments?
The FHA released its final rule for stricter lending insurance requirements: FHA Acting Commissioner Carol Galante announced new regulations (originally issued in 2010) that will require stricter performance standards for HUD-approved lenders through increasing lender indemnification, as an attempt to limit risk and strengthen finances for the MMI Fund.
Written by Alyssa Gerace