Ginnie Mae Sets Record With Reverse Mortgage MBS

The Government National Mortgage Association announced that it posted $38.98 billion in total mortgage-backed securities issuance in May. For the first five months of calendar year 2009, Ginnie Mae provided approximately $163 billion of liquidity to the secondary market, compared to nearly $80 billion for the first five months of 2008. "Our MBS program is […]

GAO Studies Reverse Mortgage Industry at Request of Congress

When participants convened in private last week at the annual policy conference of the National Reverse Mortgage Lenders Association in Washington, D.C., government officials, academicians, attorneys and business executives could “let down their collective hair,” unencumbered by the news media, which were not permitted to attend. One speaker, from the Government Accounting Office, spoke to […]

Industry Veteran Calls Out HUD On HECM Recourse Policy (Part 2)

Ding Ding!  Here comes “Round 2” from Atare Agbamu in his second installment of An Assault on Fairness: Quash Mortgagee Letter 2008-38 (Part 2).  In Round 2, he discusses how the arms-length rule in the ML has the potential to arouse anger and alienate seniors’ heirs and relatives, which he calls the “core centers of […]

Inspector General Concerned About Reverse Mortgage Fraud

Several trade groups and the Office of the Inspector General appeared Thursday before a House Financial Services Subcommittee on Oversight and Investigations where they called for more resources to ensure HUD program’s presence in the mortgage market remains. According to a testimony from HUD, the Federal Housing Administration has seen dramatic changes in its business.  […]

HUD Offers $8 Million For Reverse Mortgage Counseling

The US Department of Housing and Urban Development announced that more than $58 million is available for a broad range of housing counseling programs to help families and preserve housing.  The funding is an increase of $11 million, up 23% from last year according to a statement from HUD. “Now, more than ever, it is […]

Calculating Reverse Mortgage Risk, Are There Other Options?

Not unlike an insurance policy, wherein key educated guesses underpin much of the pricing and risk (payout) calculations, a reverse mortgage “calculator” is used by lenders to determine how much money to make available to a senior from the equity in their home, based on several factors including a borrower’s age and the property value. […]

HUD Updates Condo Approval Process For Reverse Mortgages

The Department of Housing and Urban Development published Mortgagee Letter 2009-19 which implements a new approval process for condominium projects to qualify for FHA insured mortgages in accordance with the Housing and Economic Recovery Act.  FHA will now allow lenders to determine project eligibility, review project  documentation, and certify to compliance of Section 203(b) of […]

FTC Alert: Identifying False and Misleading Claims Related to Reverse Mortgages

The Federal Trade Commission published Housing Counselors: How to Help People Avoid Reverse Mortgage Missteps to provide guidance for counselors in indentifying false and misleading claims related to reverse mortgage offers.  As an example, the FTC said that some unscrupulous lenders may try to mislead seniors about the key features of a reverse mortgage or […]

HUD Secretary Open to Raising HECM Premiums or Adjusting Loan to Values

Housing and Urban Development Secretary Shaun Donovan said he was open to raising premiums or restricting eligibility for Federal Housing Administration reverse mortgages to avoid a $798 million taxpayer subsidy for the program. "We do have options for changing the HECM program," Donovan told a Senate appropriations committee Thursday, referring to the FHA’s Home Equity […]

Loss of Equity Drives Reverse Mortgage Budget Shortfall

A feature story in the upcoming June issue of Mortgage Banking Magazine will report a 31 percent drop in nationwide housing prices since values peaked in the second quarter of 2006. The hardest hit neighborhoods are found in the interior of California, where prices have plummeted as much as 70 percent. The story reports that […]