In case you missed it… here’s what happened in reverse mortgage news this week:
The CFPB released its Qualified Mortgage rule proposal. The long awaited rule, announced in conjunction with the CFPB’s ability-to-repay rule, will not impact FHA reverse mortgages. The rule stipulates certain new requirements lenders must follow when making mortgage loans. Find out more.
…and the industry responded. Mortgage lenders commended the CFPB for getting the job done, but said that a final rule that is too narrow could hinder the housing recovery. Statements of caution came from the Mortgage Bankers Association and National Association of Mortgage Brokers, among others.
An AARP lawsuit regarding reverse mortgage loans with non-borrowing spouses was brought back by appeal. The lawsuit concerning the non-borrowing spouses of reverse mortgage borrowers was brought back by the decision of a court of appeals after having been dismissed earlier by a Washington D.C. District Court.
Reverse mortgage originators are gearing up for change. Originators are preparing for product change in the market that promises to turn the product mix selected by borrowers on its head. Read more about what they have to see about getting ready.
Written by Elizabeth Ecker