'FHA / HUD News' Category Archives

Tax & Insurance Defaults Will Change Reverse Mortgages

October 19, 2012     12 comments

We just returned from the National Reverse Mortgage Lenders Association (NRMLA) annual meeting at which we were able to listen to several speakers from HUD who spoke about the reverse mortgage and some of the challenges they are having with the program.  Seems that they are very concerned with the high number of tax and insurance defaults from many borrowers.  The...
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Which Presidential Candidate is Better for Reverse Mortgages?

October 5, 2012     2 comments

The clock is ticking down to the 2012 presidential election as Republicans and Democrats battle for control of the White House. Looking at senior-related issues, both candidates’ plans for Medicare are getting a lot of coverage, but another topic that’s also garnering attention is the ability for seniors to age in place. While reverse mortgagesaren'tspecifically on either candidate’s platform, they...
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2012 Reverse Mortgage Update

July 27, 2012     no comments

OFFICIAL: FHA Announces Fixed Rate Standard Reverse Mortgage Elimination Date.. It's been a while since we did our last State of the Union message for Reverse Mortgages and we feel that it's time to update everyone on the program. There have been some changes in the market and the players, and everyone is still waiting for the other shoe to...
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CFPB’s Releases Reverse Mortgage Consumer Guide

July 20, 2012     no comments

In conjunction with an in-depth study about the reverse mortgage business and its products, the new Consumer Financial Protection Bureau recently released a consumer guide on reverse mortgages, which is now available on its website. The guide, which accompanies other such consumer resources on reverse mortgages, allows you to ask yourself some simple questions about whether this type of loan...
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A Look Into the CFPB Reverse Mortgage Study

July 20, 2012     no comments

The Consumer Financial Protection Bureau (CFPB) released a report on reverse mortgages in June that found consumers need better information in order to make the right decision about whether to take out the loan. “Reverse mortgages are complex and have the potential to become a much more pervasive product in the coming years as the baby boomer generation enters retirement,”...
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Consumer Financial Protection Bureau’s Role in Reverse Mortgages

June 11, 2012     3 comments

The new Consumer Financial Protection Bureau (CFPB) was created under the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act with one main goal: make financial products as safe and straightforward as possible for consumers. The agency, created last year, now lists the reverse mortgage industry as one of its areas of oversight and enforcement as it oversees banks and...
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A New Landscape for Reverse Mortgages in 2012

November 7, 2011     no comments

The vast majority of reverse mortgages fall under the Home Equity Conversion Mortgage Program and are insured by the Federal Housing Administration. Under that program, the U.S. Department of Housing and Urban Development can make changes that have the potential to impact lenders and borrowers. Market shifts and other factors can also lead to program and loan changes. Here’s what...
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Unintended Consequences of Dodd-Frank Mortgage Reform

March 29, 2011     1 comment

I just do not get it. Our Congress keeps writing regulations that do not make sense in so many different ways, all under the guise of "helping" borrowers of the mortgage banking industry but they just keep making things worse. Let's talk about just 3 things that have gone into effect in the past 24 months that have hurt borrowers...
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Reverse Mortgage Costs to Rise with Dodd-Frank Financial Reform

March 9, 2011     no comments

Everyone affiliated with the Mortgage industry should be aware of the upcoming changes regarding Loan Officer Compensation that are set to take effect on April 1, 2011 and the negative impact they will have on the consumer. Simply, the law restricts Loan Originators from earning an Origination Fee and YSP (Yield Spread Premium) on a transaction simultaneously. What this does...
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