In case you missed it, here’s what happened in reverse mortgage news this week….
RMD went to New York… Reverse mortgage professionals gathered in the Big Apple to talk about issues facing the industry today at NRMLA’s eastern regional conference. From speculation on when we’ll next see 100,000 annual loans to what it will take for the secondary market to grow, close to 300 attendees weighed in.
NRMLA hinted a new hybrid reverse mortgage could be on the way. Association execs told conference attendees that it is in conversations with policy makers about the potential for a hybrid reverse mortgage product that would include an initial fixed rate option upfront with a variable rate for future draws on the loan.
Congress debated the limit on the number of reverse mortgages FHA can insure. A House Financial Services Committee markup Tuesday brought the issue to light in discussing an amendment introduced by Rep. Michael Fitzpatrick (D-Pa.) that would eliminate the cap currently held on the number of reverse mortgages insured by the Federal Housing Administration. The amendment was withdrawn on Tuesday, leaving the future of the HECM cap still in question.
Loan officer compensation to see another 180? Both a mortgage markets official and CFPB chief Richard Cordray made comments this week to the effect that the bureau is looking at the LO compensation rule and supports change, which is expected to com “soon.” Cordray indicated a new rule could be in place by 2013.
More free reverse mortgage counseling. After several agencies announced they’d be able to waive reverse mortgage counseling fees, national agency Money Management International said its recent grant funding will allow it to reintroduce reverse mortgage counseling for free.
The CFPB launched an online reverse mortgage consumer information resource. Through its “Ask CFPB” initiative, consumers to ask questions and get answers from the CFPB on financial products. The site currently includes 20 reverse mortgage-specific questions and answers, with the potential to answer more as consumers ask them.
Written by Elizabeth Ecker