RIP HECM Advisor Program

Wholesale reverse mortgage lenders continue to eliminate their HECM Advisor program due to HUD officially killing it with their recent mortgagee letter.  There are plenty of people who used the program responsibly but many feel the HECM advisor program was to blame for some of the problems our industry has faced with unscrupulous lenders.  Overall […]

Interview With National Reverse Mortgage Lenders Association President

This month’s Reverse Review includes an interview with NRMLA President Peter Bell where he discusses the current state of the industry and gives background on the FHA Modernization Bill.   During the interview, Bell gives insight into how policy makers make decisions and the reasoning behind it.  “There is a challenge in making policy in that […]

HUD Clarifies Originator Requirements, HECM Advisor Program Officially Dead

The U.S. Department of Housing and Urban Development recently published Mortgagee Letter 2008-24 which clarifies who is eligible to originate HECMs and discusses the cross selling provisions contained in the Housing and Economic Recovery Act of 2008 (HERA). Effective October 1, 2008, ML 2008-24 restricts the origination of HECMs to FHA-approved loan correspondents/sponsors FHA-approved mortgagees […]

HUD Audit Reveals Better Internal Controls Needed To Support HECM Growth

A recent audit of the Department of Housing and Urban Development’s Office of Single Family Housing found that Single Family had not fully implemented an internal control structure in accordance with Government Accountability Office (GAO) internal control standards and HUD requirements. The audit was performed due to concerns over the expected increase in Federal Housing […]

HUD Director Concerned About Legislators Overzealous Attention To Reverse Mortgage Industry

I came across a great quote from Meg Burns at the recent Mortgage Bankers Association’s Government Loan and Housing Production Conference in Washington, D.C. “I have grave concerns about the overzealous attention by legislators to the reverse-mortgage sector.  Federal regulators are going to pay attention, but they don’t know the product.  We have yet another […]

California Senator Issues Letter About New Reverse Mortgage Loan Limits

I’ve received dozens of emails from RMD readers asking about the status of the HECM loan limits but I haven’t had any updates.  Yesterday I was forwarded a letter that was mailed out by California Senator Barbara Boxer regarding the HECM loan limits (thanks Heather).  According to Senator Boxer, the HECM loan limit has been […]

HUD’s Neighborhood Watch Tool Helps Analyze Reverse Mortgage Data

Not sure if people were aware of this already, but I  stumbled across a nice tool that HUD provides called Neighborhood Watch.  According to HUD, Neighborhood Watch is intended to aid HUD/FHA staff in monitoring lenders and provide a tool to the public to help everyone in self-policing the mortgage industry. The system is designed […]

Fannie Mae Discontinues Home Keeper Reverse Mortgage Product

Today Fannie Mae announced that they would be discontinuing their Home Keeper reverse mortgage product.  With the Housing and Economic Recovery Act of 2008 being signed into law, there is no real need for the product.  Below is a copy of the announcement from FNMA.