Urban Institute on HECM Program Health, MMI Fund, Second Appraisals and More

The Home Equity Conversion Mortgage (HECM) program has been experiencing difficulties in securing greater volume over the past year, particularly since changes were made to principal limit factors (PLFs) and insurance structure (MIP) in October of 2017. HECM program observers and proponents have sometimes argued that separation of the forward and reverse mortgage programs under […]

Politico: FHA Official to Join CFPB Mortgage Office

Federal Housing Administration (FHA) official Patricia McClung will head to the Consumer Financial Protection Bureau (CFPB) as assistant director for mortgage markets, two industry sources tell Politico Morning Money in a recent article. McClung will replace Peter Carroll, who played an important role in shaping new mortgage rules that went into effect January. Carroll now serves […]

Reverse Mortgage Applications Increase for Second Straight Month

Reverse mortgage applications came in at 7,398 units for March, up 11.4% from February according to the latest Federal Housing Administration Outlook Report. Despite HECM applications being down 54.1% during FY 2010, March is the second straight month over month increase in applications and is encouraging considering volume has been trending lower all year. During […]

Principal Limit Reductions Force Reverse Mortgage Lenders to Innovate

As reverse mortgage volume continues to slide and the possibility of another principal limit reduction in October, reverse mortgage lenders have been forced to innovate and bring down costs to ensure seniors have access to the HECM program. The drop in home values across the country has played a big role in the decline in […]

Meg Burns Leaving HUD to Join FHFA, Will Be Missed

Margaret Burns, Director of Single Family Program Development will be leaving the US Department of Housing and Urban Development in two weeks to accept a position at the Federal Housing Finance Agency said the National Reverse Mortgage Lenders Association. Over the years, Burns has played an important role in the development of the HECM program […]

DOJ: Two Plead Guilty to Reverse Mortgage Fraud, Could Face 30 Years in Prison

The Department of Justice announced that Kelsey Torrey Hull, 38, and Jonathan Alfred Kimpson, 27, both of Lithonia, Ga., pleaded guilty in federal district court to a conspiracy to defraud reverse mortgage lenders and the Federal Housing Administration. Hull pleaded guilty to an additional bank fraud charge involving mortgage fraud, and Kimpson pleaded guilty to […]

FHA Leaves Dark Ages, Now Accepting Electronic Signatures for Third Party Docs

The Federal Housing Administration (FHA) announced it will begin accepting electronic signatures on third party documents originated and signed outside of the lender’s control, such as real estate contracts. A Mortgagee Letter detailing FHA’s new streamlined process is posted on the HUD website. It becomes effective immediately for FHA forward and reverse mortgage products (HECM) […]

FHA Raises Net Worth Requirements, Eliminates Correspondent Approval

The Federal Housing Administration (FHA) announced it will issue a final rule in the next few days to reduce and manage counterparty risks to its insurance funds as it continues to play a critical role in today’s housing market. The new regulations will increase net worth requirements of FHA-approved lenders (including reverse mortgage lenders), strengthen […]

FHA Bans Two More Lenders, Reaches Settlement With Others

The Federal Housing Administration (FHA) is permanently withdrawing its approval of Atlanta-based RSA Financial, Inc. and 1st Alliance Mortgage LLC of Houston, Texas. The actions prevent the lenders from originating and underwriting new FHA-insured mortgages or from participating in the FHA single family insurance program said a statement from FHA. In addition, the U.S. Department […]

Financial Assessment for Reverse Mortgage Borrowers?

“It’s coming,” said Joe Demarkey, Assistant Vice President of Strategic Business Development for MetLife in response to a question about whether the US Department of Housing and Urban Development (HUD) would start requiring lenders perform a credit underwrite for reverse mortgage borrowers. The first step towards a type of underwrite will be through new HECM […]