In case you missed it… here’s what happened in reverse mortgage news this week.
FHA reached “high risk” status, according to GAO. The Government Accountability Office, which serves as a “watchdog” for Congress, added the Federal Housing Administration to its “high risk” list as a result of its economic position and changes yet to be made to shore up its insurance fund.
Housing Chief Galante said reverse mortgage change is critical. In answering to House Republicans during a Financial Services Committee hearing this week, FHA Commissioner Carol Galante reviewed changes that have taken place across the HECM program and critical changes that are still yet to be made.
Capital markets unlikely hindered by HECM program changes… Those dealing in the investor market for reverse mortgage loans said investors will stay hungry for reverse mortgages and securitized loans in the market despite the suspension of the fixed rate standard product to go into effect in April.
Generation Mortgage named a new CEO. Formerly an employee of HUD, Colin Cushman, who has served as Generation’s chief risk officer, was named CEO this week.
Mainstream publications covered reverse mortgage change. From the Wall Street Journal to AARP’s blog, consumer outlets talked about the changes planned for reverse mortgages, having different views on the potential borrower impact.
Written by Elizabeth Ecker