The Reverse Mortgage “Family Secret”, Defaults

Like the family secret no one wants to divulge for fear of embarrassment or worse, participants in the reverse mortgage sector reportedly are playing down the growing problem of seniors who forget, don’t know, or are unable to pay taxes and insurance on their properties. Unlike a forward mortgage, where “T&I” routinely is escrowed – […]

New Requirements For Reverse Mortgage Counseling

The U.S. Department of Housing and Urban Development (HUD) published Mortgagee Letter 2009-10 to clarify several issues regarding HECM counseling for prospective borrowers.  According to ML 09-10, FHA wants to ensure that prospective borrowers initiate the request for HECM counseling.  Lenders may not contact a counselor or counseling agency to refer a client, discuss a […]

HUD Publishes Additional Guidance Regarding HECM For Purchase

Today, the U.S. Department of Housing and Urban Development (HUD) published Mortgagee Letter 2009-11 to provide a compilation of guidance issued under ML 2008-33 and to address other aspects of the HECM for Purchase program.  According to HUD’s statement, ML 09-11 supersedes ML 2008-33. There have been loads of questions regarding the HECM for purchase […]

Should HUD Change Its Recourse Policy For Reverse Mortgages?

Over at Broker Universe, Atare Agbamu wrote an interesting article about why he thinks HUD should revoke Mortgagee Letter 2008-38.  The ML was a surprise and caused a bit of stir because of the way it defines a HECM as a non-recourse loan.  Prior to ML 08-38, HUD’s policy for non-recourse was: The HECM is […]

Governing Reverse Mortgages

Government’s role in reverse mortgages has always been prominent and now looks like it will become even more important, as private financing remains drier than the Mojave. Yet, some are expressing concern about Uncle Sam’s and Aunt Sarah’s exposure in the sector when it comes to longer life expectancy and continuing equity erosion. “A lot […]

Obama Appoints Mortgage Executive To Run Federal Housing Administration

The U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced yesterday that President Barack Obama nominated David Stevens as Assistant Secretary for Housing and Federal Housing Administration (FHA) Commissioner. He currently serves as the president and chief operating officer of the Long & Foster Companies, which includes Long & Foster Real Estate […]

Builders Turning Down Borrowers Using The HECM For Purchase?

With financing harder to qualify for these days, wouldn’t you think builders and developers would be jumping at the opportunity to learn more about the HECM for purchase program?  Michael Branson from All Reverse Mortgage Company details that two of their customers have been told they couldn’t use a HECM for purchase because they weren’t […]

State Lawmakers Itching to Control Reverse Mortgages

Is it more talk than action as many state lawmakers consider enacting new or additional legislation affecting reverse mortgages? According to James Milano, an attorney with the Washington, D.C. firm, Weiner Brodsky Sidman Kider, the urge to regulate may be reactionary. “State regulators may feel responsible for the subprime mortgage meltdown and don’t want to […]

Reverse Mortgages for Purchases May Be Difficult to Manage

A highly anticipated nod from HUD allowing use of reverse mortgage funds to buy homes (a.k.a. “HECM for purchase”) and co-op apartments would mean more business for players in the sector. “It will really open up opportunities for lenders, specifically in areas such as New York and Chicago where there are so many co-ops,” says […]