Housing Bill Hopes To Prevent Reverse Mortgage Abuses Tied To Annuities

Investment News journalist Sara Hansard recently wrote about an Arizona woman who took out a reverse mortgage and used the proceeds to purchase other financial products recommended to her that didn’t need meet her income needs.  While a situation like this isn’t common, using a reverse mortgage to fund risky financial products continues to be […]

Reverse Mortgage Calculator With New FHA Loan Limits

As we wait for HUD’s attorneys to resolve whether or not the housing Bill creates a single nation loan limit at $417,000 or $625,500, wouldn’t it be nice to see what the new loan limits might offer borrowers?Ibis created a reverse mortgage calculator for RMD readers to see what borrowers might qualify for with both […]

Reverse Mortgage Appraisal Compliance Issues

Appraisal Scoop recently posted about the Most Common FHA Appraisal Report Compliance Issues and since I keep hearing about how HUD has plans to crack down on FHA lending compliance I thought I’d pass it along.  I also thought it was important because Anthony Blackburn of Apple Appraisal, Inc. was the one that compiled the […]

HUD Issues Guidance on HECM Fixed Counseling

As the fixed rate HECM has become more popular, HUD recently decided to issue guidance on the product that will require HECM counselors to highlight the risks related to fixed rate HECMs to borrowers during a counseling session.  They want to make sure clients understand the following risks and considerations when opting for a fixed […]

FHA Issues Clarification For Reverse Mortgage Advisor Program

On May 16, 2008, the U.S. Department of Housing and Urban Development published Mortgagee Letter 2008-14, which provides guidance on the role of “advisors” in the HECM program.  The only lender I’ve seen make any drastic changes to their advisor programs after ML-14 was released is Countrywide.  As of May 16th, Countrywide Reverse Mortgage Advisor […]

Borrower Paid Counseling Best Practices For Reverse Mortgages

In May HUD approved borrower paid counseling for reverse mortgages as long as the borrowers are not considered hardship cases.  Recently NRMLA issued a “Best Practice” for members to consider adopting as a way to increase uniformity and efficiency in the administration of the borrower paid billing process for the benefit of all industry stakeholders […]

HUD Issues Guidance on HECM Advisor Program

NRMLA recently announced that the U.S. Department of Housing and Urban Development published Mortgagee Letter 2008-14, Home Equity Conversion Mortgage Program – Non FHA Approved Mortgage Brokers, which provides long-awaited guidance on the role of “advisors” in the HECM program. ML 2008-14 clarifies that “advisors” (referred to as non-approved entities or third parties) cannot be […]

FHA Modernization Bill & Reverse Mortgage Update

The major news that came out of the NRMLA event in Philadelphia was regarding the FHA Modernization bill and how it would apply to reverse mortgages.  Below is an overview of what Peter Bell told us:  Agreed on a compromise that would replace the 1.5% fee cap in the pending bills with an alternative position.  […]

New Mortgagee Letter Provides Guidance On Fixed Rate HECMs

At the end of March HUD issued Mortgagee Letter 2008-8 to provide guidance to lenders who are offering the HECM fixed product.  There was confusion on the product which lead to most lenders requiring 100% of funds to be withdrawn at closing.  Some lenders would allow a line of credit but the rate was around […]

Reverse Mortgage Counseling Problems

It’s no secret that government funding for reverse mortgage counseling is a real issue impacting our industry.  HUD has set aside $3 million specifically for HECM counseling which goes to support the national intermediaries such as NFCC, MMI and AARP that support HECM counseling and counselor training.  The lack of adequate funding to meet the […]