RMD will be observing Independence Day on Friday, July 4, and would like to wish all of its readers a safe and enjoyable holiday weekend. We’ll see you back here on Monday, July 7.
In case you missed it, here’s what happened in reverse mortgage news this week:
FHA Makes More Reverse Mortgage Proceeds Available for Older Borrowers — The Department of Housing and Urban Development (HUD) issued new principal limit factors (PLFs) that include figures for those under 62 to allow for non-borrowing spouses of new reverse mortgage borrowers to remain in their homes following the passing away of the borrower, under certain terms and conditions. The newest change also raises the amount of proceeds for the older spectrum of borrowers in a lower rate environment. The new PLFs go into effect Aug. 4.
NY Reverse Mortgage Lender Faces Settlement for Misleading Advertising — Reverse mortgage lender New View Mortgage Corp. reached a settlement with New York Attorney General Eric Schneiderman for misleading direct mail marketing sent to 10,000 area seniors, according to the settlement. The marketing material was made to look as though it was from government agencies, Schneiderman said.
RMF Launches New HECM Annual Reverse Mortgage — Reverse Mortgage Funding recently rolled out a new, annually adjusting reverse mortgage product. The new loan, the HECM Annual, joins the lender’s recent introduction of the HECM Max5 product, and shares some similar qualities.
U.S. Bank to Pay $200 Million for FHA Mortgage Violations — U.S. Bank agreed to pay $200 million to resolve allegations that it violated Federal Housing Administration (FHA) loan regulations. Alleged misconduct includes violation of the False Claims Act, in which U.S. Bank knowingly originated and underwrote loans that did not meet program requirements.
Second Reverse Mortgage Securitization Pays Off Completely — The complete pay off of a second securitization trust of reverse mortgages this year marked a milestone for reverse mortgage capital markets. Structured Asset Securities Corporation Reverse Mortgage Loan Trust Series 1999-RM1, known as SASCO 1999-RM1, paved the way for all reverse mortgage securitizations, both proprietary and Home Equity Conversion Mortgages (HECMs).
Written by Cassandra Dowell