Friday Round-Up: Senators Support Reverse Mortgage Improvements

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

Reverse mortgages were a hot topic among senators. In a hearing before the Senate Banking Committee, National Reverse Mortgage Lenders Association President and CEO spoke of needed reverse mortgage change and the congressional authority FHA is seeking to make it happen. Two senators expressed their willingness toward that effort

Former MetLife execs will launch a new reverse mortgage business. Led by former MetLife reverse mortgage execs, the new company, Reverse Mortgage Funding is in the startup phase and is gearing up to do business

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The sequester loomed. With the sequester touching down Friday resulting in across the board cuts to government agencies, the impact is expected to hit FHA in the form of staff furloughs and delays for lenders as a result. Housing counseling funding also is expected to suffer a hit for the calendar year ahead. 

Minnesota’s attorney general spoke to the press about “putting brakes” on reverse mortgages. The state’s AG Lori Swanson spoke to a local news outlet expressing her concerns over reverse mortgages. View the segment

Written by Elizabeth Ecker

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  • Most of the comments on the stance of the MN AG were as expected except one. The only comment by a MN originator and one whom another named as a strong advocate in our industry for RMs in MN was unexpected. I was hoping to get insight on how to handle state officials in my own state who oppose RMs.

    The only thing the MN LO and lender exec said she has done is to hand a stack of papers to the AG back in 2009. Perhaps that is the best tact with the MN AG but that was more than a little unexpected. She specifically said the stack was composed of educational pieces and loan docs. What educational pieces were those?

    Then reading the linked websites the MN LO provided was again not what was expected. They have questionable information about federal law requiring counseling on all reverse mortgages (not just HECMs). It seems one of linked webpages applies rules which are only true for HECMs to all reverse mortgages such as the one year vacancy exception for medical or mental care.

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