Florida’s Non-Borrowing Spouse Ruling, Illinois Passes Reverse Mortgage Law

ReverseFocusReverse Focus Weekly Podcast Episode #375

Even though the Department of Housing and Urban Development (HUD) has enacted its reverse mortgage non-borrowing spouse policy, there are still some legacy issues that remain, as evidenced by a recent Florida court ruling, discusses Shannon Hicks in this week’s Reverse Focus podcast. The case should have implications for others in the State of Florida independent of the federal rule, says one law firm.

In other HUD news this past week, the agency halted their Federal Housing Administration approval for two lenders who allegedly charged improper fees to consumers. Allegations say the lenders, both located in Texas, conducted a scheme where they charged “bogus” fees to consumers and also inflated mortgages to borrowers buying new construction and manufactured housing. 

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Also discussed, the rush to beat the Financial Assessment led to a spike in reverse mortgage endorsement volume in June, rising 24% compared to the previous month, according to recent industry data from Reverse Market Insight. The increases was led by a 29.6% monthly increase in the wholesale channel to 2,324 loans in June.

Lastly, Illinois Governor Bruce Rauner last week signed a bill that would increase protections for reverse mortgage borrowers in the state. Effective January 1, 2016, the bill known as the Reverse Mortgage Act, also implements a three-day cooling-off period, during which time a potential borrower cannot be required to close or proceed with the loan.

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Talking Points:

  • Florida judge orders that spouse has borrower rights
  • HUD slams two lenders for improper borrower fees
  • Wholesale leads surge in endorsement volumes
  • Illinois has a new reverse mortgage law

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.

Written by Jason Oliva