In case you missed it… here’s what happened in reverse mortgage news this week.
Reverse mortgages took heat for a potential bailout of FHA. As detailed in President Obama’s budget released Wednesday, the Federal Housing Administration could require $943 million in taxpayer dollars as a result of losses associated with its reverse mortgage portfolio. Housing Secretary Shaun Donovan expressed a plea to Congress in speaking about the bailout for more authority to closely manage its reverse mortgage program.
…housing experts echoed the concerns. The problems can be solved through current policy decisions as well as upcoming policy changes pending the approval of Congress, they said before member of Congress, stressing the need for FHA to garner more authority from lawmaker to make the program changes it needs in order to be sustainable.
The budget also included funding for housing counseling….After past years of uncertainty with respect to housing counseling funding and a recent sequester impacting the program, the president’s budget this week outlined $55 million in funds for Department of Housing and Urban Development programs including reverse mortgage counseling.
RMS acquired $12B in reverse mortgage servicing rights from Wells Fargo. Walter Investment Management Corp. (NYSE: WAC), parent company of Reverse Mortgage Solutions, announced Tuesday it has acquired $12.2 billion in reverse mortgage servicing rights from Wells Fargo (NYSE: WFC). The acquisition doubles the size of RMS’s servicing portfolio and includes more than 76,000 loans.
Also… April is National Financial Literacy Month. Reverse mortgage counseling agency Cambridge Credit Counseling is holding a contest this month offering winners personal financial analysis with Jordan Goodman, “America’s Money Answers Man.” Find out more.