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A Biden Presidency? Here’s what we may expect
The Hill reports than long-time reverse mortgage critic, U.S. senator, and former co-sponsor of the legislation that created the CFPB is making her interest known in serving as Treasury Secretary in Biden administration should the Democrats prevail in the general election.
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1 Comment
Over the years I have spoken with consumer advocates who were acquainted with Senator Warren before she went to work for the Obama Administration to establish the CFPB. Their perception of her views on reverse mortgages was that she did not like reverse mortgages but was not so much against them that she felt the need to speak out against them. They gave the impression that she held the position that if she could not say anything good or really bad about reverse mortgages, it is best not to say anything at all. They said whenever the topic of reverse mortgages came up in small group discussions, she just looked uncomfortable and rolled her eyes.
Jim Warns made the topic of post closing counseling quite interesting by suggesting that counseling should keep doing what it is doing but that servicers should provide this service. That seems very appropriate since the servicer can provide SPECIFIC information and answers SPECIFIC questions about how their servicing works. Yet it would seem with the problem of dementia and Alzheimer’s, it is best if servicing provides this service once each four years following closing. The service should be provided by a dedicated group of experienced servicers. The cost should not be paid out-of-pocket by borrowers but should be one of the costs of servicing, Since the servicer would not have to cover everything covered in initial counseling, the time needed to provide this service should be much shorter than initial counseling and should not increase the cost of servicing by more than $4 per month currently.
I also agree with Shannon that part of the service we provide seniors is that we speak with them post closing. Yet it also seems appropriate that the originator be notified by the servicer after each post closing session to see what questions or comments they have about the servicing update they received.