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Comment on Before & After: The Financial Interview Tool & HUD Counseling by The_Critic

The_Critic — Tue, 07 Sep 2010 19:51:48 +0000

If Ronni Bennett is having a hard time with the idea of providing financial information (see part 7 at Time Goes By) and so many of her readers agree, will FIT and BCU become barriers to seniors getting HECMs? I wonder how many of those “subjected to” BCU have any idea what the difference is between a revocable and irrevocable burial account; the ones who just know the difference should automatically be awarded a counseling certificate.

To date, it is Dr. Stucki who is answering all of the questions about FIT and BCU. Yet counseling is run by HUD not NCOA. While it is OK for Dr. Stucki to address aspects of FIT and BCU, it is odd she is the one telling us how it relates to the issuance of a counseling certificate.

Was it actually a Freudian slip that it starts on 9/11? I would like to hear what HUD’s specific expectations are for FIT and BCU? As to counseling, some will be claiming that the HUD flag is flying upside down after 9/10?

Comment on Can HECM Regulators Act Unethically Toward the Reverse Mortgage Program? by The_Critic

The_Critic — Mon, 06 Sep 2010 02:49:06 +0000

While I support your opinion there is another side to the issue.

When the principal customer of reverse mortgages is those in need, there is concern that perhaps seniors are desperately reaching out for a product that will not serve their needs. On one hand, federal authorities are correctly treating originators as persons who have a vested interest in the outcome of the originations, while on the other hand state authorities want originators to act as if they were fiduciaries. How can the same person be both on the same transaction?

While I think FIT is a poorly designed tool, the concept is well warranted; however, this tool is neither fish nor fowl, or for that matter beef or pork. Its defenders avoid the specifics to focus on their stated (some may say self-righteous) goals. They generally have a vested interest in its defense.

NRMLA is the voice of lenders. Originators need their voices heard as well. I strongly believe that HUD felt as if it needed to do something and could not get their act together in time thus compromising in selecting the NCOA product. Unfortunately not only is the strategy and product poor but worse so is its date of implementation.

HUD can and must do better. Maybe it is time HUD directly sought out the opinions and advice of those of us who are on the front lines dealing directly with the seniors both before and after counseling — originators.

Comment on Careless Advice by James E. Veale, CPA, MBT

James E. Veale, CPA, MBT — Mon, 06 Sep 2010 02:16:56 +0000

I wish I could agree with your assessment. However, the problem is your assessment assumes a strategy that is lacking in their statements. Even if that is their advice, the problem is when an investment or portfolio is falling in value merely buying time only makes the current problem worse, especially when the strategy involves a product that only produces costs. What is not needed is more time with the current bad strategy but rather a “conversion” to another strategy which could easily include a reverse mortgage.

Comment on 9/11 brings New HUD counseling tool: Why it’s a “game-changer” by admin

admin — Fri, 03 Sep 2010 22:12:37 +0000

Terry, You are most welcome. You can find what you're looking for here.

Comment on 9/11 brings New HUD counseling tool: Why it’s a “game-changer” by Terry McCarthy

Terry McCarthy — Fri, 03 Sep 2010 21:07:32 +0000

On the call you mentioned the HUD booklet “Preparing for you counseling session”. Can you tell us where to get this booklet? I serched the HUD website and could not come up with it. I requested a copy from one of the local counselors and they do not have it either. Thansk for the call…….It was very good!!!

Comment on Can HECM Regulators Act Unethically Toward the Reverse Mortgage Program? by Terry McCarthy

Terry McCarthy — Fri, 03 Sep 2010 21:01:52 +0000

I wish the talking heads would change places with us in the field for about 6 months, and then see what they think of all the new regulations they have enacted.
I would not be against the FIT or the BCU as long as both are optional and not a requirement. With the questions being asked it is beginning to sound more and more like they DO need to credit and income qualify. For the most part, my borrowers are fully capable of understanding the program and making a thoughtful decision. If they need help they call upon their family or finacial advisors.
If after 6 months the talking heads still think they made the right decisions I’d like them to come back for another 6 months starting April 1,2011 and see if they can make a living working at this job/mission.
It is time they truly did put the senior first.

Comment on Careless Advice by Greg

Greg — Wed, 01 Sep 2010 17:32:19 +0000

Jim,

I think that your article is partially on target and for the most part sound. Here is my issue with your article- I think that many of the advisors are giving their clients good advice by informing them of their OPTION to use a reverse mortgage for income purposes while their investment(s) recover. The point here is they are buying the senior TIME for their investment(s) to recover.

You are 100% right in saying that a bad investment may never recover and bad advice is just that- bad.

However, who said they were telling the client to stay with the bad investment(s)? All they are saying is if you want to try to recoup any loss from the investment(s) here is a way to buy TIME to do so.

These clients should be working with not only a reverse mortgage professional, but a good Financial Planner or a CPA to ensure what they are doing is right for their specific case.

Please don’t throw the baby out with the bath water!

Comment on 9/11 brings New HUD counseling tool: Why it’s a “game-changer” by The_Critic

The_Critic — Sat, 28 Aug 2010 23:23:17 +0000

Is that a flak jacket the pictured senior is wearing? If the picture is intended to be a senior taking counseling after 9/10/2010, — it should be!

Comment on Can HECM Regulators Act Unethically Toward the Reverse Mortgage Program? by Morrie Shoob

Morrie Shoob — Mon, 16 Aug 2010 14:41:47 +0000

Its about time that someone finally speaks up about Washington’s role in RMs. I believe that what is going on in this administration will lead to the ultimate failure of the program if left unchallenged. As housing prices, the real crux of the program, continues to spiral downward, and the principal limit is once again cut, fewer and fewer seniors will qualify. Washington needs to rethink what an RM is, and how an RM actually helps to fulfill FHA’s original mandate to stabilize neighborhoods. Instead of discouraging seniors from seeking RMs, Washington needs to assist seniors in every way possible. Counseling should be confined to RM issues and not be intrusive, complicated or overly daunting for the senior. It should give the senior the facts and answer the senior’s questions. The assumption that age brings on financial stupidity or financial senility is simply not a fact (as Washington seems to think). If anything, the only place this seems to be true is in Washington itself and is not a consequence of age, only arrogance.

Comment on Fox Business: Fair & balanced on reverse mortgages? by Randy Garrett

Randy Garrett — Fri, 06 Aug 2010 13:33:37 +0000

I’ve originated reverese mortgages. This is a very accurate article and pretty thorough.
THe introduction of the fixed rate programs is a perfect example of using YSP on a mortgage to lower/pay closing costs for the borrower to make it affordable / more economically feasible. Congress aught to take note of this when they were messing with ysp in forward mortgages in their Finance Reform.