With the recently released final rules for loan officer compensation and the expected suspension of the standard fixed rate HECM product government agencies have drastically changed the motivations and interaction between mortgage lenders and borrowers. First loan officer compensation…
Continue readingA New Approach Required: Selling the Adjustable HECM
With the expected suspension of the fixed rate standard product comes the need to adjust our approach with prospective borrowers. Here are five tips to help with the transition…
Continue readingChopped? Standard Fixed Rate Days Are Numbered
It appears the super sweet fine grain sugar of the standard fixed rate is flying off the shelves and it’s return is uncertain. Brokers, lenders and loan officers are now faced with selling a new product mix and perhaps focusing on a new breed of borrowers.
Continue readingAn Unlikely Ally?
The prospect of not continuing to offer reverse mortgages has created unlikely ally for the program, AARP according to Sterne Ageel. Wall Street sees the continued profitability of the program and TWO: AARP is seen as a defender of the HECM. While AARP has long educated consumers…
Continue readingWhat just happened? A look behind the scenes.
Even though HUD telegraphed their intentions to make substantial changes to the reverse mortgage program many today are in a state of shock. Here’s brief look behind the scenes courtesy of NRMLA’s special bulletin. First, our industry has been very active in working with those shaping policies for the HECM program. NRMLA and others have been working tirelessly
Continue readingSaving the Reverse Mortgage. What If?
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What if? That is pretty much all we can say as an industry about the certain and yet unknown changes to the federally insured HECM or reverse mortgage program. With an estimated future negative balance of 2.8 billion FHA finds itself in an awkward postion. One of defending the existence of the program before the Senate. Yes, some members of the Senate Committee on Banking Housing and Urban Affairs pushed the idea of suspending, yes stopping the program as a solution
What if they move my cheese?
With expected yet unknown changes to the HECM program, FHA may ‘move the cheese’. In today’s risk-adverse environment FHA is focusing on the fixed rate product. Publically they are concerned if it serves the HECM program’s original intent and purpose. But privately one could speculate that the full lump sum withdrawals of the fixed rate are seen as increasingly risky loans to an already underfunded MMI fund.
Continue readingOvercoming 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…
Continue readingShaping our future: Financial Assessment
Some claim it has created confusion in the marketplace. Others fear it will exclude up to 30% of borrowers. As the debate continues, the Financial Assessment is the biggest game-changer our industry faces, and our future borrowers
Continue readingRobbing Peter to Pay Paul: Friday’s Food for Thought
It’s a consequence of the payroll tax cut extension: increased FHA premiums. Reverse mortgage borrowers may see increases of ongoing insurance premiums. Should borrowers bear the burden for a tax cut for working Americans?
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