Nationstar Ends Reverse Mortgage Originations, CFPB Spend Sparks Criticism

ReverseFocusReverse Focus Weekly Podcast Episode #317

In this week’s Reverse Focus podcast, Shannon Hicks discusses home prices nationally are still undervalued by as much as 3%, but not for long, according to a recent analysis from Trulia’s “Bubble Watch” report.

New View Mortgage Corp., a New York-based reverse mortgage lender, is facing substantial settlement costs for a misleading direct mail marketing campaign sent to 10,000 area seniors. The direct mail solicitations were designed to replicate official government notices from the Federal Housing Administration, stated New York’s Attorney General.

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Also discussed, reverse mortgage volume is showing a new trend, according to a recent report from Reverse Market Insight (RMI). While sand states are leading the way in overall reverse mortgage endorsements, it’s a Pennsylvania surprise as Philadelphia ranks the supreme city for endorsement growth.

In other reverse mortgage news, Nationstar Mortgage Holdings, Inc. (NYSE:NSM) is leaving the reverse business. Last week, the company announced that it will no longer originate reverse mortgages through its Greenlight Financial platform, however, it will continue to service its Home Equity Conversion Mortgage portfolio, which is presently valued at nearly $30 billon.

Lastly, Hicks discusses the spending “boondoggle” of the Consumer Financial Protection Bureau (CFPB), which has come under fire for having already spent more than $215 million toward the renovation of its Washington, D.C. headquarters. A federal report indicates that the CFPB is spending significantly more per square foot than what it cost to build the Trump World Tower and the Bellagio Hotel and Casino in Las Vegas.

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Talking Points:

  • Home prices still undervalued, but not for long.
  • New York reverse lender faces settlement for misleading ads.
  • Pennsylvania surprise signals new reverse mortgage volume trend.
  • Nationstar exits reverse mortgage industry.
  • CFPB renovation boondoggle sparks criticism.

Listen now. “Reverse Focus is the ultimate resource for reverse mortgage professionals providing the technology, training and marketing to grow your business. We are your one-stop resource for those committed to taking their business to the next level.”

Editor’s Note: These posts are sponsored by Reverse Focus.

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