This week brought major news out of some of the largest publicly traded reverse mortgage servicing companies, as well as a new effort in Congress to regulate the Home Equity Conversion Mortgage marketplace. Here are the top headlines you need to catch up:
Nationstar Reportedly Exploring Sale Prospects — Nationstar Mortgage Holdings, Inc. (NYSE: NSM), parent company of reverse mortgage servicer Champion, was the subject of sale rumors as its majority owner itself goes through a transition — though CEO Jay Bray squashed any attempts to discuss the chatter during the company’s quarterly earnings call.
Waters Introduces Bill Aimed at Reducing Reverse Mortgage Foreclosures — Rep. Maxine Waters, a California Democrat, unveiled a new bill intended to help prevent reverse mortgage foreclosures, which she described as “a problem.” Read our story to see exactly how the industry would be affected if the law passes.
Despite Changes, Reverse Mortgage Newcomer Sees Promise in Program — HomeBridge Financial, a New Jersey-based firm, doesn’t regret its decision to make a major push into reverse mortgages just a few months before new principal limit factors took effect — in fact, its head of reverse lending says the product is even better than before in some ways.
Reverse Mortgage Brokers See Slow October With New Rules in Play — Despite HomeBridge’s optimism, some brokers have seen demand dry up in October after a breakneck September. Chief among their concerns: the potential for lower broker revenue due to increased margin competition, and a sea change in the way companies market HECMs going forward.
Celink to Subservice $900M Financial Freedom Reverse Mortgage Portfolio — RMD broke the story of how Celink will take over subservicing for the Financial Freedom portfolio of reverse mortgage loans, which owner CIT Group (NYSE: CIT) recently sold for an undisclosed amount to an unspecified buyer. Financial Freedom employees will be transferred to Celink, sources told RMD.
Written by Alex Spanko
Former staffers from HUD, FHA and the GSEs weigh in on how to press ahead in this volatile reverse mortgage climate.