Financial Assessment Welcomed by Some

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Some Lenders Welcome Financial Assessment

reverse mortgage newsThree months following the enactment of the Financial Assessment some smaller reverse mortgage lenders are finding the new guidelines a breath of fresh air.

A welcome change? Surprising since reverse mortgage endorsement numbers have fallen after the assessment became baked into the origination of Home Equity Conversion Mortgages. Where is the sweet spot for the assessment? It would appear to be with smaller lenders.

Robert Wyatt, president of Reverse Mortgage Advisors, LLC said “As a small independent shop I’m seeing that the FA has created a need to really sit down face-to-face or kneecap-to-kneecap, with potential borrowers to explain the process. This has really been a benefit to us.” While many may not share the same sentiment due to numerous guidelines and documentation requirements, some have found a silver lining despite the overall pushback by many loan originators. That silver lining is…

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Don’t Get Suckered: Consumer Reports

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Consumer Reports Article Cautions Readers

reverse mortgage newsThe magazine and self-described consumer educator and advocacy group Consumer Reports recently published an article entitled “Don’t Be Suckered Into Buying a Reverse Mortgage”.

In it’s paternalistic zeal Consumer Reports does dispense some practical advice but unfortunately makes use of pejorative terms such as vulnerable, at risk, ambiguous, and suckered. Today we will take a short editorial and factual review to prepare you to work with potential borrowers who may have read this piece.

Consumer Reports begins with the claim that the loans are often advertised as a risk-free way to fill the financial gaps in retirement. Not surprising since several media outlets have jumped on the CFPB’s recent report of reverse mortgage complaints, many which are related to advertising.

The article states that…

 
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Where Do We Go from Here?

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RMD Interviews NRMLA president Peter Bell on Industry Outlook and change 

If you want an example of rapid industry change look no further than the Home Equity Conversion Mortgage program.

where-we-go

Recently Reverse Mortgage Daily interviewed Peter Bell, president of the National Reverse Mortgage Lenders Association or NRMLA seeking insight on the recent spate of changes to the HECM program and our industry’sfuture.

First RMD asked- given the Financial Assessment is underway and the non-borrowing spouse issue seems to be getting resolved, how would you classify the footing of the Reverse Mortgage program right now relative to other points in history?

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.

Where Have the Jumbos Gone?

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Where Are the Jumbo Reverse Mortgages

The time is ripe for jumbo reverse mortgages but where are they?

reverse mortgage newsThe Home Equity Conversion Mortgage market has weathered the storms of the housing crash and numerous product changes yet the emergence of a strong jumbo loan market has yet to appear.

A recent article in Reverse Mortgage Daily by columnist Jason Oliva says despite the talk of jumbo products returning they are nearly absent despite a substantial need. First let’s define what a jumbo loan is. A jumbo loan is a mortage with a loan amount which exceeds the loan limits established by federal lending agencies which are privately guaranteed. Today there is only one jumbo reverse mortgage loan product in the marketplace, the…

Download a transcript of this episode here.

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‘Unwinding’ a Reverse Mortgage: Heirs Need Assistance

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Bankrate Article Highlights Challenges of Heirs Settling Reverse Mortgages

helping-adult-childrenIt’s no secret. Many of our past borrowers will pass away during our tenure as reverse mortgage professionals. Knowing this shouldn’t we prepare our borrowers and heirs on how to unwind the reverse mortgage?

A recent article in BankRate entitle “Here’s what happens to their reverse mortgage after your parents die” spells out the challenges and process. Columnist Marcie Gaffer writes “As more seniors turn to reverse mortgages, their adult children might well be puzzled or concerned about what will happen to that debt when one or both of their parents eventually dies. At that time, question about how to pay off the loan will need to be resolved–and relatively quickly.”

Download a transcript of this episode here.

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Transparency Needed for Improvement

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CFPB Not Releasing Ad Data at Core of Recently Released Study


reverse mortgage newsAfter releasing a consumer advisory and the results of focus group findings of reverse mortgage ads that were deemed misleading, ambiguous or difficult to understand to consumers and the media alike, the Bureau is less than forthright in releasing the data. After the release of the report numerous media outlets jumped on yet another negative reverse mortgage study. After all shouldn’t one trust a federal agency such as the Consumer Financial Protection Bureau? Yes, if that agency is fair and transparent in its findings.

Unfortunately that does not appear to be the case. In a press call last week industry representatives asked if the Bureau would make the ads used in the study available. The terse reply: they will not. Strange since the Bureau says they are committed to getting input from all parties to make markets more accessible and efficient for consumers. If that is the case then release the ads shown to the focus groups…

Download a transcript of this episode here.

Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.