In a message to its members Tuesday, the National Reverse Mortgage Lenders Association’s co-chairs reiterated the trade group’s support of the latest changes to the Home Equity Conversion Mortgage appraisal process — a shift designed to stop losses to the Mutual Mortgage Insurance fund. Written by leaders Joseph DeMarkey, the strategic business development leader of […]
Category: FHA
After the changes to the Home Equity Conversion Mortgage’s appraisal process took effect earlier this week, reverse mortgage professionals are anticipating what they might mean to the industry. Last week, the Federal Housing Administration announced that all HECM appraisals will be subject to a proprietary collateral risk assessment. If the results suggest the first appraisal […]
The Federal Housing Administration has been exploring potential options to stem the reverse mortgage program’s negative impact on the Mutual Mortgage Insurance Fund, and its leader on Monday positioned the government’s new appraisal requirements as the best of multiple difficult choices. “We do understand that our policy changes are going to be challenging initially for […]
It’s been an eventful fiscal year for the reverse mortgage industry. Stemming from the Home Equity Conversion Mortgage program changes last October, the last 12 months have brought lower origination volume, proprietary product innovation, originator diversification, and — most recently — changes to the HECM appraisal process. When last year’s HECM changes hit — with […]
The Federal Housing Administration on Friday announced a new appraisal requirement for Home Equity Conversion Mortgage lenders in another attempt to stem losses to the Mutual Mortgage Insurance Fund. Starting with case numbers assigned October 1, the FHA will perform a collateral risk assessment on all reverse mortgage appraisals, then require a second appraisal if […]
As a plethora of new proprietary products have launched this year to fill holes left by changes to the Home Equity Conversion Mortgage program, lenders are refining their target audiences — and the best ways to reach them. On the surface, HECM marketing and proprietary marketing look similar. Both are targeting seniors who want to […]
As reverse mortgage borrower demographics have changed and lenders have expanded their product offerings this past year, new research from the Kroll Bond Ratings Agency foresees rising investor interest in the proprietary market. In anticipation of this interest, KBRA compiled a report — called “Five Things to Know About Reverse Mortgages” — for those new to […]
The Federal Housing Administration approval process for condominiums continues to be a headache for loan originators who have prospective clients interested in Home Equity Conversion Mortgages. Currently, an entire condominium community must be approved by the FHA for a resident to open a HECM. But many originators said they are met with resistance from condo […]
As the industry has positioned the Home Equity Conversion Mortgage as a strategic retirement tool for more affluent borrowers, an industry trade group recently issued an important warning: Do not accidentally terminate your loan by paying down your balance too low. Called a “HECM non-claim termination” in the Federal Housing Administration’s HERMIT system, this type […]
Despite almost two years of public support and amended bylaws, residents in one of Arizona’s 55-and-up communities must continue to wait to open reverse mortgages. Residents of the Sun City West active adult community, about 30 miles northwest of Phoenix, got a glimmer of hope in May when their governing body rewrote a bylaw to […]
