In case you missed it… here’s what happened in reverse mortgage news this week.
FHA Clarifies Reverse Mortgage Foreclosure Timelines for Non-Borrowing Spouses—Following a change outlined in its foreclosure rules for non-borrowing spouses, the Federal Housing Administration this week clarified its policy, specifying that non-borrowing spouses facing foreclosure have two extension opportunities; one prior to the foreclosure and another during the process.
AAG Goes to Washington in Latest Reverse Mortgage Commercial Launch—AAG launched a new commercial this week, featuring spokesman and former Senator Fred Thompson. Pictured walking through the halls of Congress and throughout the Capitol buildings in Washington, D.C., Sen. Thompson points to recent legislative changes to the federal reverse mortgage program.
BNY Mellon Launches New Reverse Mortgage Business—BNY Mellon detailed a re-entry into reverse mortgages, which will include its role as a correspondent lender and securitized of reverse mortgages. It’s not the first foray into reverse mortgages for the largest custodial bank, but it says it will focus on growth through its existing channels over the coming months as the business gets under way.
HUD Halts Insurance of Fixed-Rate Future Draw Reverse Mortgages—Through a mortgagee letter issued this week, the Department of Housing and Urban Development said it will begin to limit its insurance of any fixed rate reverse mortgages that also include future draws against the principal of the loan. The change echoes a new rule implemented by Ginnie Mae specifying that GNMA would no longer securitize such loans.
FHA Issues Warning on Deceptive and Misleading Reverse Mortgage Advertising—HUD also issued a reminder to lenders this week on how they can avoid deceptive and misleading reverse mortgage marketing practices; an issue that has come to light on the heels of program changes implemented in late 2013.
Written by Elizabeth Ecker