Clearly, multitasking is overrated, as the authors of a powerful new book, “The Plateau Effect: Getting from Stuck to Success”.
Continue readingGood Intentions vs Original Intent
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Though Unwelcome Change was Crucial
Watch Last Week’s Video Here | Submit Feedback to HUD on Financial Assessment Here
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The Importance Of Intent In The Reverse Mortgage Industry
The saying goes “the road to hell is paved with good intentions”. The same could be said of the federally-insured reverse mortgage program’s recent predicament and HUD’s swift action to avoid disaster…the closure of the program. Much of the recent reverse mortgage news has focused on the announced overhaul of the Home Equity Conversion Mortgage Program, but few look at or understand it’s original intent. The words original intent are fitting when examine the origins of our program versus its evolution over the last 24 years. The Housing & Community Development Act which laid the groundwork for the reverse mortgage program says the purpose is “to meet the special needs of elderly homeowners by reducing the effect of the economic hardship caused by the increasing costs of meeting health, housing, and subsistence needs at a time of reduced income, through the insurance of home equity conversion mortgages to permit the conversion of a portion of accumulated home equity into liquid assets.”
Now What?!
Now that the old HECM is effectively gone what can we do to protect and grow our business? Here are nine valuable strategies you can begin working today!
Continue readingHECM Changes Demystified
10 Things you must know about changes to the Home Equity Conversion Mortgage Program.
Continue readingAugust Top 100 Retail HECM Lenders Report.
Download your August Top 100 Retail HECM Lenders Report Here.
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The top ten lender positions remain relatively unchanged while Nationstar broke last month’s top 10. In the wake of consolidation and acquisitions it appears that the largest lenders have firmly established their positions. What remains to be seen is the lender specific effects due to the upcoming elimination of the Standard & Saver products and the introduction of a new replacement HECM loan.
FHA to Reexamine MMI Fund Projections
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A Second Look at MMI Fund after Program Changes…
BREAKING:Read Mortgagee Letters 2013-27 & 2013-28 for complete details of changes.
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A second look at the Mutual Mortgage Insurance Fund is exactly what FHA plans do to after setting the wheels in motion for historic changes to the reverse mortgage. Yes, after committing to eliminating both the Standard and Saver product in lieu of a new one FHA wants another look. It all began in November 2012 when an Actuarial review of the MMI fund found that the reverse mortgage portion accounted for a negative 2.8 billion dollar economic value. Economic value is a better description than losses for these are projected losses based on actuarial analysis and data. In other words, with home values that fell this percent and projected loan balances and appreciation the fund would pay X dollars. Early figures showed the HECM portion of the fund accounted for 2.8 billion in projected losses of the 16 billion dollar overall future shortfall. Later that figure was revised to show projected losses from reverse mortgages totaling $5.2 billion. The dire numbers were too unsettling to ignore. So why the second look at the fund at this stage?
Out with the Old, In with the New…
See what FHA’s plans are for the HECM program. From two loans products will come…
Continue readingIt’s About The Money
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Beyond Platitudes, What Retirees Really Want & Need
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Money makes the world go around…well at least for today’s retiree according to a recent study. The National Council on Aging or NCOA’s survey “The United States of Aging” shows 53% are more concerned about outliving their money than their health. Last week we discussed the long term care crisis and the reverse mortgage’s role. Unfortunately money and a retiree’s health and long term care go hand in hand. A popular quote reads..
A Clear Solution Already Exists
When it comes to those seeking to solve the issue of senior’s aging in place perhaps on quote should be mentioned. “Sometimes we stare so long at the wrong things, we miss out on the RIGHT thing standing right in front of us”.
Continue readingOctober Surprise?
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Reverse Mortgage Reform Bill Passes, Awaits President’s Signature
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August or October Surprise? FHA may be able to use a scalpel rather than an axe when it comes to making reforms to the federally insured reverse mortgage or Home Equity Conversion Mortgage program. Late last Tuesday night the Senate granted the Federal Housing Administration the authority to make changes via mortgagee letter rather than the lengthly rule making process in passing House Resolution 2167, better known as the Reverse Mortgage Stabilization Act of 2013. Now the bill awaits the President’s signature. This is a pivotal development because without this authority harsher measures may have been employed to protect the American taxpayer and FHA’s mutual mortgage insurance fund from projected losses. It is expected that FHA will issue a mortgagee letter late this month outlining changes with an implementation date of October first. One HUD official said. We are looking at issuing ML by end of August and, ideally, October 1 for implementation.
