From product changes to mergers and new business entrants, the reverse mortgage market has seen a wealth of news in 2013. Here are the top 10 most-read stories on RMD this year, according to traffic data compiled by our editorial team.
1. FHA to Halt Fixed Rate Standard Reverse Mortgage Starting April 1—Jan. 30, 2013—FHA said it would merge the Saver and Standard loan programs, eliminating the popular fixed-rate, standard reverse mortgage.
2. HUD Announces Major Changes to Reverse Mortgage Program—Sept. 3, 2013—HUD spelled changes to the HECM program including new borrower requirements that took effect on October 1, 2013.
3. HUD to Combine Existing Reverse Mortgage Products—Aug. 19, 2013—Prior to making reverse mortgage changes, HUD informed the industry it was considering them, following an actuarial review of FHA’s insurance fund that showed reverse mortgage loans led to an FHA shortfall in fiscal year 2012.
4. HUD Slashes Reverse Mortgage Principal Limit Factors—Sept. 4, 2013—Following the announcement of changes to the HECM program, HUD announced new reverse mortgage principal limit factors that went into effect October 1. New borrowers see about 15% less in proceeds as a result.
5. FHA Reverse Mortgage Changes Coming By Month’s End and FHA: New Reverse Mortgage Changes Coming in August—Jan 15 and July 31, 2013—Lenders tuned in to FHA’s announcements of upcoming changes throughout the year.
6. [Update] Walter Investment Management Buys Security One for Up to $31 Million—Jan. 2, 2013—Walter, which previously acquired RMS, purchased Security One in the first part of 2013, further ramping up its position in the market.
7. Former MetLife Execs Launch New Reverse Mortgage Start-Up—Feb. 24, 2013—Several former MetLife reverse mortgage executives announced a new startup, Reverse Mortgage Funding, that later opened for business in August.
8. Nationstar Acquires Greenlight Financial for Up to $75 Million—May 7, 2013—Mortgage servicing giant Nationstar agreed to acquire Greenlight Financial as well as its reverse mortgage platform, for up to $75 million.
9. President Obama Signs Reverse Mortgage Reform Bill into Law—Aug. 9, 2013—President Obama signed into law the Reverse Mortgage Stabilization Act, authorizing the Secretary of HUD to establish additional requirements to improve the fiscal safety and soundness of the HECM program.
10. Court Rules Against HUD in Reverse Mortgage Non-Borrowing Spouse Suit—Oct. 1, 2013—In a lawsuit that has yet to be resolved, a court ruled against HUD in a suit filed by non-borrowing spouses of reverse mortgage borrowers. HUD has since appealed the ruling.
Written by Elizabeth Ecker