In case you missed it, here’s what happened in reverse mortgage news this week.
HUD Rescinds Recent Rule on Reverse Mortgage Non-Borrowing Spouses — The Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2015-12, effectively revoking the guidelines laid out in ML 2015-03 detailing the Mortgagee Optional Election (MOE) Assignment of Home Equity Conversion Mortgages (HECMs) assigned prior to August 4, 2014. Effectively immediatly, lenders will also have a new option to extend foreclosure proceedings for up to 60 days in certain cases.
Lender Launches ‘Caregiver Loan’ as New Reverse Mortgage Alternative — Boston-based National Family Mortgage has traditionally structured loans that enable parents to help their adult children purchase their first homes, but as a result of growing demand from existing clients, the company is now providing the inverse of that via the Caregiver Mortgage.
RMS, Security 1 Roll Out Rebranding Effort and New Reverse Mortgage TV Ad — The rebranding efforts include new, redesigned logos and tagline that will roll out under a multimedia introduction that launches with a new website, new sales materials, direct marketing and a brand new TV spot. The ad will run nationally on more than a dozen cable channels upon its launch.
Select Lenders Buck Declining Reverse Mortgage Volume Trends — Home equity conversion mortgage (HECM) endorsements declined in April, but several lenders stood out with strong results that month, according to Reverse Market Insight data. Among those lenders is Reverse Mortgage Funding, which jumped 82.4% “to their highest total in their history and continuing to close the gap in run rates with the top five lenders,” RMI reports.
HuffPost: The Pros and Cons of Reverse Mortgages — For borrowers, reverse mortgages offer a number of benefits — but they also come with their fair share of drawbacks. A recent article points out some of these advantages and disadvantages.
Written by Emily Study