Late Friday afternoon Countrywide announced that they were discontinuing their reverse mortgage broker advisor program due to the Housing and Economic Recovery Act of 2008 being signed by the president.
While we haven’t seen the mortgagee letter from HUD regarding the elimination of the program, Countrywide is taking a proactive approach. According to the email from Countrywide, all non-FHA approved brokers using the advisor program had to get their applications in by last Friday at 8:00 PM… at least they gave everyone a few hours notice.
While I’m not sure how much of Countrywide’s reverse mortgage production came from the advisor program, I know they were heavily marketing it to their “forward” wholesale clients. I would expect formal announcements from other lenders in the next couple weeks.