Celink to Pay $4.25 Million to Settle Federal HECM Lawsuit

Compu-Link Corporation (Celink) has agreed to pay a $4.25 million civil settlement to the United States to resolve allegations made by the U.S. Justice Department relating to a False Claims Act violation related to its servicing of Home Equity Conversion Mortgage (HECM) products. This is according to a press release from the United States Attorney’s […]

HECM Endorsements Halted During Partial Government Shutdown

Home Equity Conversion Mortgage insurance endorsements are being halted as a result of the partial U.S. government shutdown that began on Saturday, according to a notice sent by the Federal Housing Administration (FHA) on Wednesday morning. Due to a lapse in appropriations, the shutdown entered its fifth day on Wednesday. Until further notice, the FHA […]

Forbes: A History of Reverse Mortgages

A professor at the American College of Financial Services has written a new column detailing the history of reverse mortgages, extending further beyond the Housing and Community Development Act of 1987 signed into law by President Ronald Reagan in February of 1988 by over 25 years. Appearing at Forbes, Dr. Wade Pfau – who also […]

HECM Endorsements Hit New Low Following October 2017 Changes

Home Equity Conversion Mortgage (HECM) endorsements dropped in November by 17.4 percent, representing a new low in volume since HECM rule changes were put into effect by the U.S. Department of Housing and Urban Development (HUD) in October, 2017. “New lows, here we are,” said John Lunde, founder and president of Reverse Mortgage Insight (RMI), […]

HECM Second Appraisal Process Becomes Fully Automated

The Federal Housing Administration (FHA) announced today that as of Friday November 30, 2018, the protocols governing new second appraisal requirements for Home Equity Conversion Mortgages (HECMs) will become fully automated. The HECM second appraisal rule was first announced on September 28 in Mortgagee Letter 18-06, which outlined a series of procedures deployed on an […]

Reverse Mortgage Endorsements See September Drop, Narrowly Missing All-Time Low

A new Home Equity Conversion Mortgage (HECM) originators report published by Reverse Market Insight (RMI) describes a drop in September that “narrowly” missed out an all-time monthly low since new rule changes were handed down in October of 2017. According to the report, HECM endorsements dropped -9.9 percent to 2,874 loans in September. The report […]

Servicers Give Updates on Non-borrowing Spouses

As complex servicing issues regarding non-borrowing spouses continue to challenge reverse mortgage originators, servicing experts offered their guidance on updates to Home Equity Conversion Mortgage servicing at the National Reverse Mortgage Lenders Association conference last month. As many loan originators continue to be a main source of loan-related support long after the reverse mortgage is […]

FHA Automates User ID Processes

The Federal Housing Administration is discontinuing paper documentation and moving to email for two parts of the user ID assignment process for application coordinators. Both changes will be effective November 9. Under one change, mortgagees’ chief executive officers will begin being notified via email when an employee has been assigned a new user id. The […]

Reverse Mortgage Changes Prompt Originators to Rethink and Rebrand

For any reverse mortgage professionals repositioning their businesses with new products and different strategies amid recent industry changes, now is the perfect time to rebrand, marketing experts say. October 2017’s Home Equity Conversion Mortgage principal limit factor changes and the waning volume they caused over the last year have many lenders and originators looking to […]

NYSE Delists RMS Parent Company Ditech

Following multiple warnings, Ditech Holding Corporation (NYSE: DHCP), the parent company of Reverse Mortgage Solutions, is being delisted from the New York Stock Exchange. The NYSE is delisting the company after its failing to meet the NYSE’s listing standard requiring companies to maintain at least $15 million in average global market capitalization over a consecutive […]