Here & Gone: Top lender MetLife drops financial assessment

by Shannon Hicks
| 3 Comments
| January 30, 2012

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[vimeo id=”35773279″ width=”625″ height=”352″]

MetLife Suspends Financial Assessment

Watch the video to learn why the first out of the gate with the FA is now stepping away altogether from using Financial Assessment.

Editor in Chief: HECMWorld.com

As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.

Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.

Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

3 Comments

Larry Hanover
January 30, 2012 at 8:01 am
I believe that some form of a Tax Escrow System should be designed specifically for the HECM market. I understand that this would be complicated but should only be mandatory for the borrowers that fall into the lowest of incomes.
Although not a good time for this suggestion due to current economic conditions and completely against my personnal beliefs HUD in combination with State and Local taxing bodies might figure out a system of tax credits to make up the difference in the short fall of a Seniors ability to pay for Tax and Insurance.
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James E. Veale, CPA, MBT
January 30, 2012 at 2:24 pm
Without a specific change to HUD Handbook 4330.1 Section 13-12 A.1. escrow accounts are more fantasy than potential answer. We have heard much anecdotal evidence about how escrow accounts will work to cure the problem. Yet if one looks into the default situation in the forward industry where is the evidence that escrow accounts stop defaults for failure to pay.

The NRMLA approach as presented in the letter to Ms. Hill on June 24, 2011 is an excellent starting point. It cannot possibly prevent all defaults but will be useful in preventing a large percentage of them. With several tweaks, the concepts presented in that letter on mandatory set asides have a lot of possibility for success.
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Bill Danner
February 1, 2012 at 1:07 pm
The likelyhood of defaulting on taxes and insurance should be appreciable less with a HECM in place than left to their own devices. I think that it is mostly a function of how one closes on the loan.
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