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  There was confusion on the product which lead to most lenders requiring 100% of funds to be withdrawn at closing.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 […]

How Grandchildren Can Impact a Reverse Mortgage

Inman News had an interesting article that mentioned some of the financial obstacles that are preventing seniors (subscription required) from acquiring reverse mortgages. According to Ralph Rosynek, President of 1st Reverse Financial Services, it’s delinquent student loans. Rosynek said, “the elderly often co-sign for student loans on behalf of their grandchildren”. Not only student loans […]

HUD Approves LIBOR Index for HECMs

Last Friday U.S. Department of Housing and Urban Development approved the use of LIBOR Indexes for all FHA Arms and HECM products. HUD felt the change was necessary because LIBOR is both an international index determined on the basis of the world economy and an index that has become very popular in the secondary market. […]