In the interest of best serving the needs of the borrower and protecting ourselves against future legal claims, each of us should reexamine the questions should be asking each potential borrower…
Continue readingA Kosher Reverse Mortgage
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The Mortgage Professor Launches New Approach to HECM origination
In my recent discussions with Jack Guttentag or The Mortgage Professor he mentioned a new product he is developing; the kosher reverse mortgage. For those unfamiliar with the term kosher can mean a product or food is certified as acceptable meeting particular requirements, often religious. Last week Mr. Guttentag outlined the particulars of the program. First he begins with the need for specific HECM certification of reverse mortgage professionals. I couldn’t agree more. Today those seeking to enter the reverse mortgage space are required to pass the national NMLS and state-specific tests mostly centered on traditional mortgage lending. Typically nationally exams have zero or one or two HECM specific questions. As the HECM is a complex financial product being offered to a protected class who can ill afford a financial misstep, a HECM specific certification would go a long way in protecting the consumer and our industry’s reputation.
Here are a few highlights of the Mortgage Professor’s Kosher Reverse.
1- Loan officers would make efforts to counter the bias toward excess cash withdrawals…
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
Against the Grain?
For years we have heard both the promise and potential the retiring baby boomers hold for the reverse mortgage industry. While this potential and rapidly expanding market is somewhat tempered by increasingly high mortgage debt held by those 62 and older there is an overlooked niche within this group: the ‘mass affluent’.
Continue readingPart 2: Exclusive Interview with Jack Guttentag
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Part 2 of our interview with Jack Guttentag:Â Rising Mortgage Rates and HECM Impact
In part two of our interview The Mortgage Professor discusses rising mortgage rates, proposed interest rate disclosure to borrowers, longer interest rate lock periods, industry preparedness for a rising interest rate market and more.
Visit the Mortgage Professor at www.MTGProfessor.com.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
Exclusive Interview with The Mortgage Professor
In part one of our interview The Mortgage Professor discusses the possibility of double-digit mortgage interest rates which have not been seen since the HECM program’s inception. We explore the industry impact, consumer awareness, disclosures and more.
Continue readingCFPB Releases New Consumer Reverse Mortgage Guide
It was only two short years ago that the CFPB or the Consumer Financial Protection Bureau issued it’s first report to congress on the Home Equity Conversion Mortgage or reverse mortgage program. In this week’s segment we will examine what questions this guide addresses as well as the questions it raises…
Continue readingWhat Retirees Really Worry About Most
Retirees looking to retire monthly mortgage payments, increase cash flow or travel during their golden years while their health is good. The question is are we missing out on touching on a more important motivation for potential reverse mortgage borrowers?
Continue readingThe Cost of Change
With August HECM endorsements hitting a nine year low of 3,200 plus loans many are beginning to ponder the long term effects of HUD’s recent spate of changes to the federally-insured reverse mortgage program. August’s numbers show the lowest monthly volume of endorsements and three trailing months since June 2005 when only 3,139 HECMs were endorsed…
Continue readingNew HECM: Old Issues Remain
The ‘New’ Reverse Mortgage. It’s a timely title considering the slate of recent changes to the HECM program and NRMLA’s Extreme Summit television ads which tout a new reverse mortgage. While one could accurately surmise we have a ‘new’ product we still face some of the same old challenges of years past.
Continue readingDo Rising Interest Rates Trigger Slower Home Appreciation?
As loan interest rates rise banks & lender’s refinance business will dwindle forcing them to loosen lending standards to compete for potential borrowers. While this mostly applies to traditional mortgage lending relaxed lending standards result in more qualified buyers increasing housing demand and prices alike.
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