From a new Home Mortgage Disclosure Act rule to national non-borrowing spouse coverage, it was a busy week for reverse mortgages. In case you missed them, here are the top stories from across the industry this week.
Answer to LIBOR Question Written in Reverse Mortgage Notes—On the heels of an announcement that the LIBOR index will be phased out by 2021, speculation swirled on a replacement index for adjustable rate reverse mortgages. HUD actually has a back-up plan for an instance just like the one where LIBOR goes away completely.
Senators Still Waiting on Reverse Mortgage NBS Clarification from HUD—The New York Times picked up on the story of two senators who have pressed HUD on the non-borrowing spouse topic as it relates to recent language introduced in the Trump Administration’s annual budget. The senators are still waiting on answers, NY Times reports.
New HMDA Rule Would Apply to Reverse Mortgages, Delay Sought—The National Reverse Mortgage Lenders Association confirmed that a proposed rule regarding the Home Mortgage Disclosure Act would indeed apply to Home Equity Conversion Mortgages — and asked the agency in charge of administering the rule for a delay.
Reverse Mortgages: Part of a Process, Not a Product— Reverse mortgage professionals frequently run into the perception that the products themselves are simply “bad” — either based on a potential borrower’s experience with the loans in real life, or through decades of media coverage. One financial planner writes it’s best to abandon the idea of the Home Equity Conversion Mortgage as a “good” or “bad” product at all, and reshape the question as a matter of process.
Reverse Mortgage Counselors See More Sophistication in Post-FA World—It’s been two years since Financial Assessment rocked the reverse industry, but now that the dust has settled, some say the impact is clear. HECM counselors across the country say they are seeing a distinct shift in their client profile.
Written by Elizabeth Ecker