The life of a reverse after closing

Often out of sight and mind after a reverse mortgage closes, servicing is the backbone of the ongoing relationship with the borrower. From monthly draws, tenure payments and loan questions reverse mortgage servicers are on the front lines of long-term customer support and care. The average loan officer is with the borrower for 3-9 months while the servicer….

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Overcoming Worry with Focus

“Worry never robs tomorrow of its sorrow, it only saps today of its joy.” said Leo Buscaglia. So why the quote? FHA Deputy Assistant Secretary Charles Coulter said in a session that they are considering substantial changes in quote- short oder-. The financial assessment is one, the other and more disturbing for some attendees was the fixed rate HECM. HUD is concerned about the vast majority of borrowers taking a full draw for the fixed rate…

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Are we already ‘assessing’ borrowers?

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Are we already assessing borrowers? Many have mixed emotions about the soon to be released financial assessment from HUD even though we know it is necessary to help reduce defaults due to taxes and insurance. The question is have lenders quietly begun their own financial assessment, albeit informal with tightening underwriting standards?

The “Exit Effect”

The exits of large banks and lenders such as MetLife, Bank of America and Wells Fargo have done more than consolidate the market or create opportunities for remaining mid-size lenders. These ripples in our industry have gone largely unnoticed. It boils down to liquidity. That is the supply of approved Ginnie Mae issuers of HECM Mortgage Backed Securities or HMBSs. Today we are only supported by …

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Setting workplace boundaries

Boundaries. Seems like a negative word for some because it means saying no to someone at times. Perhaps, but each of us as reverse mortgage professionals have a full plate and little time to waste. I chuckled walking through an office last week where the administrator had…

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Walking away? Loan Fall Out

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Are potential reverse mortgage borrowers and applicants walking away from the loan or is it that they just don’t qualify? The question stems from a recent report from IBIS software which is tracking the number of HECM borrowers who receive counseling that actually end up with a closed loan. A first HECM counseling protocols were suspected by some as to why so many never closed a loan. But is that really what is happening? Other factors must be examined such as appraisal values, property conditions or just cold feet. Our video segment examines the numbers and possible causes and also reason to be optimistic in the future.