Friday Round-Up: AARP Spells Six Reverse Mortgage Changes

In case you missed it… here’s what happened in reverse mortgage news this week. 

AARP outlined six reverse mortgage fixes. Upon testifying before a Senate subcommittee in June, AARP Public Policy Institute Senior Strategic Policy Advisor Lori Trawinski noted several considerations and concerns regarding the Federal Housing Administration’s reverse mortgage program. Read the list. 

Mortgage rates continued on an upward climb. Rates, which “spiked” last week following a Federal Reserve Bank announcement indicating the Fed will taper its bond purchase schedule as the economy begins to recover, have continued their upward trajectory, hitting 4.46% this week as tracked by Freddie Mac. 

…reverse mortgage investors stalled in response. The demand and pricing for reverse mortgage securities among investors has fallen sharply, leading to a downward shift in broker pricing for individual loans in the market.

NRMLA weighed in on AARP’s reverse mortgage lawsuit. The association was granted amicus status by the U.S. District Court in the District of Columbia, allowing NRMLA to participate as a “friend of the court,” in offering input on the case. 

Written by Elizabeth Ecker