In case you missed it… here’s what happened in reverse mortgage news this week.
[Update] FHA Gives New Options for Reverse Mortgage Non-Borrowing Spouses — The Federal Housing Administration (FHA) issued new guidance for under the Home Equity Conversion Mortgage (HECM) program, allowing lenders the option to delay foreclosure of non-borrowing spouses, according to Mortgagee Letter 2015-03.
[Updated] Reverse Mortgage Rate Checker Tool Not in the Cards for CFPB — The Consumer Financial Protection Bureau’s (CFPB) newest resource, launched earlier this month, is receiving considerable opposition from forward mortgage industry advocates who argue the tool is misleading. But those in the reverse mortgage space can rest assured, as the CFPB confirmed with RMD that it has no plans to expand the Rate Checker to include reverse mortgages.
Most Top-10 Lenders See Reverse Mortgage Slump Near Year’s End – Nine out of the top-10 reverse mortgage lenders experienced a decline in volume in November, according to the latest Reverse Market Insight (RMI) report — but Live Well Financial bucked the trend.
Reverse Mortgage Counselors Prepare for New Rules With Hurdles Ahead – With implementation of the financial assessment just over a month away, reverse mortgage agencies are bracing for the new rules’ impact, with many ramping up training efforts.
Mortgage Professor: No ‘Deadbeats’ Under New Reverse Mortgage Rules – The new income and credit requirement on reverse mortgage applicants via the financial assessment — to be imposed March 2 — should reduce the default rate on new loans. But, in some ways the new underwriting requirements that lenders will apply to all applicants are tougher than those used with standard mortgages, writes The Mortgage Professor, a.k.a. Jack Guttentag, in a recent article.
Written by Cassandra Dowell