Reverse Mortgage Provision Included In Final Text of Stimulus Bill

I received a handful of emails over the weekend asking for the actual text of The American Recovery and Reinvestment Act of 2009.  It sounds like there was rumors floating around that the reverse mortgage provision was removed but according to the text posted on the White House website it’s still included.  See below: SEC. […]

Stimulus Bill Compromise Includes Higher Reverse Mortgage Loan Limit

When the Senate passed its version of the economic stimulus bill earlier this week, people in the industry were concerned because it didn’t include a provision to raise the HECM loan limit.  Yesterday, members of the U.S. House and Senate participated in a conference committee to work out the compromise for the stimulus package. According […]

Fannie Mae Changes Pricing Policy For Reverse Mortgage Refis

Generation Mortgage recently published an alert stating that Fannie Mae announced a modification to their pricing policy for HECMs.  Effective immediately, all HECM to HECM refinances are eligible to earn a premium, but lenders are still obligated to comply with all HUD regulations for HECM refinances.   Prior to this change, most lenders weren’t paying premiums […]

House Passes Stimulus Bill, Reverse Mortgage Provision Included

Yesterday the House of Representatives approved President Obama’s economic recovery plan with vote of 244-188.  The text of the bill does include the reverse mortgage provision which was added in response to a request that came jointly from NRMLA and AARP.  The provision would  set the single national loan limit for HECMs at a higher […]

Senate Confirms Donovan as HUD Secretary

Last week the Senate confirmed Shaun Donovan to be the nation’s new housing secretary in the Obama Administration.  Donovan starts his job as originations of Federal Housing Administration-backed single-family loans have tripled over the past year. At the hearing, Donovan said that FHA has "capacity issues that require immediate attention." Donovan has been a big […]

HUD Inspector General Warns Congress of Concerns About HECM Program

The Department of Housing and Urban Development’s assistant inspector general warned a Congressional committee on Jan. 9 of concerns regarding FHA’s ability to handle the increase in volume it has seen over the past year. James A. Heist, assistant inspector general for audit, testified that FHA needs to increase personnel, increase training for personnel and […]

Reverse Mortgage Volume Grows As Retirees Investment Income Declines

The reverse mortgage industry continues to be one of the only bright spots in the housing market, but advocates for aging Americans say they should only be used in specific instances.  While still small in number compared to traditional mortgages, a weak economy and declining investment income has spurred many elderly people to use reverse […]

HUD Publishes HECM For Purchase Counselor Training Presentation

HUD recently published a HECM for Purchase Training presentation for HECM counselors on its website.  The powerpoint includes slides that covers the monetary investment requirement, allowable funding sources, role of the real estate agent, and other topics regarding the HECM for purchase. Along with the powerpoint, HUD posted a recorded conference call it conducted for […]

HUD Updates Eligibility Requirements For FHA Appraiser Roster

Last week the HUD published Mortgage Letter 2008-39 which imposes new requirements on appraisers who want to remain on FHA’s Appraiser roster, as required under the Housing and Economic Recovery Act (HERA). Starting October 1, 2009, FHA will require all appraisers on its roster to be certified by the state in which the property to […]

FDIC Publishes Report On What To Know About Reverse Mortgages

The Federal Deposit Insurance Corporation recently published Reverse Mortgages: What Consumers and Lenders Should Know. The report goes over the the history of reverse mortgages and why the aging population presents such an opportunity to banks. While there is big opportunity in catering to the aging demographic, the report notes that financial institutions have been […]