Reverse Mortgage Subsidy or Principal Limit Factor Reduction?

On a daily basis, we hear about the economic crisis and the hardships plaguing our country, from the loss of jobs, to high unemployment rates, crashing property values and companies closing up shop. It’s disconcerting to say the least. What I find to be more disturbing is that our lawmakers would reject a $789 million […]

House Appropriations Bill Could Extend Higher Reverse Mortgage Limit

The House Appropriations Committee’s bill could lower the amount of money available to seniors using the FHA insured reverse mortgage product but the 162 page bill looks like it will extend the increased lending limit of $625,500 through FY 2010. SEC. 235. FHA Reverse Mortgage Loan Limits for fiscal year 2010. For mortgages for which […]

Banking Lobbyists Fight Reverse Mortgage Legislation

Banks continue to lobby for support in California, spending $4.4 million lobbying state lawmakers in the first quarter of this year, just $500,000 less than the $4.9 million they spent in the first quarter of 2007 according to the Sacramento Bee. Bank of America has increased its lobbying expenditures in California from about $24,000 in […]

Senator McCaskill Fighting Reverse Mortgage Fraud Through Twitter?

Senator Claire McCaskill continued to express her concern over reverse mortgages at Senate Commerce Committee hearing earlier this week.  The hearing included testimony from the Federal Trade Commission, National Consumers League and a few others to discuss “Protecting Consumers During Downward Economic Times”. During the hearing a range of topics are discussed but towards the […]

Lobbyists Are Frantic Over California Reverse Mortgage Legislation

The California Progress Report writes that two bills designed to protect senior citizens from unscrupulous reverse mortgage lenders are being pushed by senior citizen advocates, but lobbyists representing reverse mortgages lenders are seeking to block or water the bills down. “The banking lobbyists are frantic,” said Prescott Cole of California Advocates for Nursing Home Reform, […]

State Bans Yield Spread Premiums For Reverse Mortgages

New Hampshire’s State Legislature passed HB 610 on June 24 which bans yield spread premiums (YSP) for reverse mortgages.  The bill is in the enrollment process and will be delivered to Governor John Lynch’s office soon. HB 610 also includes a provision related to companies cross selling reverse mortgages with other financial products.  The provision […]

MBA Proposes Model Legislation For Proprietary Reverse Mortgage Products

While the majority of reverse mortgages originated continue to be FHA insured HECMs, regulators and legislators are voicing concerns about the need for consumer safeguards for proprietary reverse mortgage products. During a speech earlier this month, John Dugan of the Office of the Comptroller of the Currency said, “lenders are likely to develop more attractive […]