Another busy week for reverse mortgage news. A lot happened, so let’s just jump right in…
This week, President-elect Donald J. Trump confirmed his nomination of Dr. Ben Carson to serve as Secretary for the Department of Housing and Urban Development.
The nomination, which drew both applause and criticism from mortgage industry trade groups and other industry stakeholders, could bring significant implications for the future of mortgage lending over the next four years under the Trump Administration, including reverse mortgages.
In other high profile news, the Consumer Financial Protection Bureau (CFPB) took action this week against several reverse mortgage lenders, claiming the companies used language that was misleading in their advertising and marketing materials. The story has since gone viral across various mainstream media publications, including USA Today, CBS News, The Los Angeles Times, Consumer Reports, and more.
But in case you missed anything that went down, here are the most popular reverse mortgage news stories that grabbed the attention of RMD readers this past week:
What a Trump Administration Means for Reverse Mortgages and FHA Lending—President-elect Donald Trump remains vague on housing policy, but his most recent cabinet nomination offers a glimpse of what a Trump Administration could mean for reverse mortgage lenders and the broader mortgage lending industry.
Five People Charged in $33 Million Reverse Mortgage Fraud Scheme—Federal investigators with the FBI and HUD this week charged five people for their alleged involvement with a $33 million scheme to defraud homeowners and banks in New York State and Connecticut. The scheme included the illegal acquisition of reverse mortgages by way of fraudulent documentation.
CFPB Takes Issue with Reverse Mortgage Advertising—After a four-year investigation of reverse mortgage marketing practices, the CFPB identified several issues with the wording used in advertisements of some of the reverse mortgage industry’s largest lenders. On Wednesday, the CFPB took action against three lenders, including American Advisors Group, Reverse Mortgage Solutions and Aegean Financial, claiming the companies used misleading language about the possibility of borrowers losing their homes.
[Updated] Ben Carson Accepts Trump Nomination to Serve as HUD Secretary—Weeks of speculation finally came to an end this week when President-elect Trump officially announced his intent to nominate retired neurosurgeon and former GOP presidential candidate Dr. Ben Carson to serve as HUD Secretary. Carson, who for weeks was on the fence about serving in the Trump Administration, accepted the nomination of HUD chief.
Top Regions, Lenders Dodge Declining Reverse Mortgage Volume in November—Reverse mortgage volume continued to skirt under the rate of 4,000 loans per month in November, though not by much. On a monthly basis, Home Equity Conversion Mortgage endorsements declined 0.7% in November to 3,891 loans, but some top-10 regions and lenders saw some growth during the month, according to the latest industry data tracked by Reverse Market Insight.
Written by Jason Oliva