Our monthly summary of Reverse Mortgage articles, updated news, and happenings, all in one place. We hope you're involved in the greatest mortgage niche ever created...Reverse Mortgages.

HUD Publishes FAQ Regarding Proposed Rules for FHA Net Worth Requirements
Dec 03, 2009 01:23 pm | admin

Only a few days after publishing proposed rules to help reduce risks to the Federal Housing Administration’s single family insurance fund, HUD has published a Frequently Asked Question document addressing the possible changes. The proposed rule would increase net worth requirements of approved reverse mortgage lenders from $250,000 to $2.5 million within three years of...

Reverse Mortgage for Co-Ops Coming Soon?
Dec 03, 2009 11:15 am | admin

Homeowners who are looking to get a reverse mortgage on their co-op will be able to soon according to an article from the New York Times. The question was posted in its Real Estate Q&A over the weekend. Eric D. Sherman, a Manhattan real estate lawyer, said that a HECM for co-ops should be available...

HUD Will Ask Congress to Raise Cap on Insurance Premiums for FHA Loans
Dec 02, 2009 10:51 am | admin

The Wall Street Journal is reporting that the Federal Housing Administration plans to announce measures it is considering to protect its dwindling reserves. According to the WSJ: Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, plans to ask Congress on Wednesday to raise the cap on the annual insurance premium that the FHA...

Technical Defaults Challenge Reverse Mortgage Servicers
Dec 01, 2009 01:59 pm | Neil

To some, the term “technical default” is akin to being “somewhat pregnant” – i.e. inherently contradictory, since one either is or isn’t. However, with so much sensitivity surrounding seniors and reverse mortgages, their failure to properly make tax and insurance (T&I) payments produces a “you go first” reaction when it comes to penalizing such action...

FHA and Ginnie Mae Suspend Lender
Dec 01, 2009 12:48 pm | admin

The Federal Housing Administration withdrew the approval of Ideal Mortgage Bankers, doing business as Lend America and Lending Key. The action becomes effective immediately and prevents Ideal from originating and underwriting new HFA mortgages. While the majority of Ideal’s mortgage business was compromised of “forward” loans, the company was active in the reverse mortgage industry. According...

HUD Extends Higher Loan Limit for FHA Reverse Mortgage Program
Nov 30, 2009 02:19 pm | admin

The US Department of Housing and Urban Development officially extended the loan limits for its FHA insured reverse mortgage program with Mortgagee Letter 2009-50. ML 09-50 provides notice of the 2010 comprehensive update to the Federal Housing Administration’s (FHA) single-family loan limits, under the authority of the recent passage of the Continuing Resolution, 2010 (CR)...

New York Reverse Mortgage Legislation Becomes Law
Nov 30, 2009 02:13 pm | admin

We do our best to stay up to date on reverse mortgage legislation but every once and a while something slips by and the Reverse Mortgage Fairness Act of 2009 is a perfect example.  New York’s Govenor signed A08305 in July and the bill became effective Oct. 26, 2009.  The bill amended Banking Law and ...

Reverse Mortgage Lender Completes SAFE Act Course
Nov 30, 2009 02:12 pm | admin

AllRegs announced that reverse mortgage lender James B. Nutter & Company has successfully completed its 20 Hour Mortgage Loan Originator SAFE Comprehensive Course. The course was approved by the Nationwide Mortgage Licensing System & Registry in August and fulfills the entire 20-hour pre-licensing requirement for originators. Like many other mortgage lending companies, James B...

HECM Fraud Investigations Under Way, Says HUD OIG
Nov 29, 2009 05:48 pm | Reva

One of the most interesting parts of the NRMLA Annual Conference last week was “Keeping HECMs Honest – The Inspector General’s Point of View,” a session led by Assistant Special Agent in Charge, Office of the Inspector General (OIG), U.S. Department of Housing and Urban Development (HUD), Michael Stolworthy. Stolworthy began the session by making it...

CHIP Reduces Reverse Mortgage Interest Rates
Nov 25, 2009 12:30 pm | admin

Canada’s largest reverse mortgage lender, HomEquity Bank announced that it has significantly reduced its variable rate on CHIP Home Income Plans to 3.75%, signaling a transformative change in the acceptance of reverse mortgages as a viable tool within the financial solutions landscape said a company statement. The significantly lower cost of borrowing gives today’s cost-conscious seniors...

Advertising Compliance: Big Issue Facing Industry
Nov 24, 2009 12:34 pm | Reva

During the Acceptable Advertising – and the Language You Must Avoid session at the National Reverse Mortgage Lenders Association Annual Conference in San Diego, panelists called advertising the biggest issue we have to deal with because it is the most visible and offered some insight into an extremely significant and sensitive issue within the reverse...

HUD Issues Guidance for Subordinate Lien Financing Under the HECM
Nov 24, 2009 10:52 am | admin

The US Department of Housing and Urban Development issued Mortgagee Letter 2009-49 to provide guidance for addressing FHA requirements for secured subordinate financing under the Federal Housing Administration’s reverse mortgage program.  According to the ML, Home Equity Conversion Mortgage (HECM) regulations require that there shall be no outstanding or unpaid obligations, either unsecured or...

HUD Notice Asks Serious Questions About Use of Reverse Mortgage Proceeds
Nov 19, 2009 03:08 pm | admin

The US Department of Housing and Urban Development will publish an advance notice of rule making concerning reverse mortgages and will “ask some serious questions that a lot of people may find disconcerting,” said Meg Burns, Director, Single-Family Program Development at HUD. Burns spoke at the National Reverse Mortgage Lenders Association’s annual conference earlier this...

Financial Freedom Takes Top Wholesale Lender Title for FY 2009
Nov 19, 2009 12:29 pm | admin

Wholesale reverse mortgage volume for the month of September totaled 5,567 units, up 6.1% from August and marking the 6th highest wholesale volume month on record according to data from Reverse Market Insight. For fiscal year 2009, wholesale endorsements totaled 60,798, dropping just under 1% from FY 2008. Financial Freedom took home the #1 reverse...

Fannie Mae Pricing Brings More Diverse Investor Base
Nov 19, 2009 01:46 am | Neil

The secondary market for reverse mortgages is welcoming the expansion of adjustable rate securitizations through Ginnie Mae’s HMBS (HECM MBS) program. Leading the way for its sheer size is Bank of America, which is producing $200 million to $300 million a month in fixed and adjustable HMBS, according to Alan Cates, pricing strategy and secondary...

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Tom Domin is the author of "101 Ways to Originate Mortgages" and publisher of "Tom's Mortgage Tips" a twice monthly Mortgage Newsletter geared for Mortgage Professionals. Put your mortgage career on the fast track and sign-up for FREE at http://www.MortgageMarketingToolKit.com/

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