In case you missed it, here’s what happened in reverse mortgage news this week:
Mortgage industry members met (again) with the CFBP on LO comp. Instead of getting answers, though, they were faced with more questions. RMD attended a National Association of Mortgage Brokers webinar following the meetings, during which NAMB reported the CFPB is “a ticking time bomb” with respect to LO comp changes, which must be made by January 21, or mortgage originators will lose all ability to charge points and fees. Read more.
Reverse mortgage applications and endorsements fell. Reverse Market Insight reported on the most recent lender ranks.
In other CFPB news… the agency posted new rules on enforcement of consumer financial protection law on its website this week.
Massachusetts delayed its reverse mortgage face-to-face law. An amendment to a Massachusetts Senate bill passed this week and will delay the implementation of a state requirement that all reverse mortgage borrowers must go through face-to-face counseling before obtaining the loan. The implementation of the requirement will be delayed two years from the planned date of effect, originally scheduled for August 2012.
Retirement research: Don’t let reverse mortgages fly under the radar. The Boston College Center for Retirement Research issued a research brief indicating that reverse mortgages are by and large a better option for retirement planning than the traditional asset allocation model. Most households simply don’t have the savings to justify the traditional model. Read our report.
J.G. Wentworth showed signs of life. The company, which announced last year it was getting into the reverse mortgage business, has now begun to show signs that it is, in fact, gearing up to start originating reverse loans.
Written by Elizabeth Ecker