Friday Round-Up: Reverse Mortgage Lenders Head to New Orleans

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

Kiplinger ran an article about the new features—and hurdles—of reverse mortgages. Kiplinger explains the distinction between the old reverse mortgage product and the new one, as of October 1, that offers less of an upfront draw and two different mortgage insurance premiums 

The CFPB filed suit against a law firm, alleging mortgage kickbacks. The Bureau filed suit against a Kentucky law firm that it believes paid illegal kickbacks for mortgage referrals. The lawsuit seeks disgorgement of all “ill-gotten” proceeds from the arrangement, as well as an injunction to stop the defendants from further violating RESPA.

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FHA chief Galante went before Congress to talk FHA “bailout.” Despite losses, the agency is on the road to recovery, Galante noted, though reverse mortgages are accounting for the majority of those losses.

CFPB released a new guide to working with seniors on financial matters. A series of guides, “Managing Other People’s Money,” speaks to caregivers and fiduciaries who manage money for their older parents, friends or relatives.

… and lenders are heading to New Orleans for the Annual NRMLA convention next week. RMD will be there, keeping readers up to date on reverse mortgage matters. Don’t miss the Wish of a Lifetime Foundation benefit on Monday evening for those who are in town. 

Written by Elizabeth Ecker

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  • It was interesting to read the written testimony of the Commissioner. In it she shows why $1.685 billion was taken from Treasury at the end of September rather than the original estimated $943 million. First, the profit from forward mortgages is now estimated at $840 million less than anticipated six months before and HECM losses look about $98 million low than expected.

    Despite the updated lower estimated loss for HECMs last fiscal year, the higher transfer amount than expected means more attention has once again been drawn to the problematic loss problems connected to HECMs.

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