Friday Round Up: MetLife Quits Reverse Mortgages

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

MetLife exited the reverse mortgage business. In an announcement Thursday, MetLife stated its decision to leave the reverse mortgage origination business and sell its servicing portfolio to Nationstar mortgage. Read our coverage of the exit.

CFPB continued its mortgage industry audits, shedding some light on the process. Sources shared with RMD their experience in assisting companies through the audits, which by and large include an enforcement attorney present, they’ve found. Lessons learned? Be prepared, they say.

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A California reverse mortgage bill was amended to remove a face-to-face counseling requirement. A California assembly bill that previously made a push for mandatory face-to-face reverse mortgage counseling throughout the state has been amended to make the face-to-face stipulation optional for all people attending the counseling.

We looked at data on pull through rates. Here’s what recent HUD data shows: not all lenders are equal in their rate of pull through, or the percentage of loans that receive a case number ultimately close. There may be some good reasons for the discrepancies.

RMD asked the question: When will the industry see 100,000 units again? Well, the answer might have changed based on the news developments this week, but we took a crack at the question through an editorial by John Yedinak.

Written by Elizabeth Ecker

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  • When will our industry see 100,000 endorsements?

    It seems the NRMLA conference was caught up in this being the year of the lender and forgot this is also a fiscal year of further erosion in total endorsement numbers.

    Someone the other day declared that fiscal year 2013 will not be a year for lenders.  It seems that person might have spoken too early.  Fiscal 2013 could easily shape up to be a good year for lenders and yet we could experience even further erosion in total endorsements.  One thing seems definite the gains in market share obtained by most lenders during fiscal 2012 will be lower in fiscal 2013.  

    Even though fiscal 2013 will most likely produce less than half the endorsements produced during fiscal 2009, the total should be above 40% of endorsement production during fiscal 2009.  Case numbers assigned in June, July, August, and September of this year will tell us a whole lot about endorsements numbers for fiscal 2013.  The extent of the overall pull through rate following counseling will tell us even more.  If HUD is right that rate will drop further after the loss of MetLife.

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