In case you missed it, here’s what happened in reverse mortgage news this week.
An FHA audit revealed a negative $2.8 billion value for its reverse mortgage business. An audit showed FHA will have to dig out of a $16 billion hole total, and that a capital infusion from the U.S. Treasury for the first time in history might be in the works. To support finances, FHA plans to raise annual premiums by 10 basis points and sell 10,000 delinquent loans per quarter.
A local TV news station featured NRMLA CEO. In a follow-up segment from a Kansas City TV news segment, NRMLA President and CEO Peter Bell discussed “high” interest rates and other inaccuracies associated with reverse mortgages.
MBA showed support of a universal LO licensing test. MBA President and CEO David Stevens and several reverse mortgage professionals agreed that a uniform state test for loan originators would level the playing field and benefit both consumers and lenders alike.
HECMs proven to be useful resource for divorcing borrowers. Originators find HECM Purchases can provide minimized risk solutions for divorcing couples looking to maintain assets, drawing from home equity to do a HECM Purchase on a new home for the moving spouse.
Reverse mortgages showed a slight uptick in October. The 21% rise from September in reverse mortgage counseling sessions could forecast growth potential despite months of low volumes.
Written by Jason Oliva