Indeed with the numerous delays and false launch of the financial assessment one could be left with a sense of uncertainty while trying to originate reverse mortgages. You’re not alone. Here are three tips to manage uncertainty today.
Continue reading3 Weeks: Are You Prepared?
When it comes to how reverse mortgage loans are originated a line has been drawn in the sand: March 2nd, 2015. In two short weeks the long-awaited or dreaded Financial Assessment goes into effect forever changing the way HECM loans are qualified. This is a game-changer.
Continue readingAssessing the Impact
The two biggest words in our industry today…Financial Assessment. The question is what fallout can we anticipate once the assessment goes into effect in March? A recent article in Reverse Mortgage Daily looks at the potential impact finding both optimistic and pessimistic predictions.
Continue reading5 Things You May Not Know about the Financial Assessment
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Five Take-Aways from the Financial Assessment
Two weeks ago today we hosted a national webinar on the Financial Assessment with over 800 participants. Since that time the proverbial dust has begun to settle allowing us to absorb more details for the new way of doing business. That said there are five key facets of the Financial Assessment that may be overlooked or misunderstood.
1- Credit Scores. One could reasonably conclude that anytime a lender is checking a credit report the applicant’ts credit score is a key factor in determining their eligibility. Fortunately unlike traditional mortgages where the applicant’s credit score not only determines eligibility but the interest rate the HECM program has no such consideration. The credit report is soley for examining a borrowers history of paying obligations in a timely manner thus indicating their willingness to meet the financial obligations of a reverse mortgage.
2- Non-HECM liens. Recently uncovered is the requirement that non-HECM liens where the borrower
Download a transcript of this episode here.
Looking for more reverse mortgage news, commentary and technology? Visit ReverseFocus.com today.
A Plan for Change
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Preparing Yourself for the Financial Assessment
“The reed which bends in the wind is stronger than the mighty oak which breaks in a storm”.
Though centuries old this familiar quote could have been written for the reverse mortgage professional. The last two years have given us both numerous and monumental changes to the federally-insured Home Equity Conversion Mortgage Program. That change is here to stay regardless of our misgivings, approval or apprehension which leads us to the question, ‘how can we prepare for change?’.
Here are five points to ponder in your planning for 2015 and the brave new world of reverse mortgage lending.
1- Adjust your mindset. This is perhaps our most challenging task to date. Even if we strongly disagree with distribution limits, the financial assessment or seasoning requirements for non-HECM liens we must first get ourselves into a mindset of acceptance and implementation. The good news is we have a few months to settle our misgivings and concerns before we reach out to new potential borrowers once the Financial Assessment is enacted. If we skip this step our prospects will sense our hesitation or lack of belief in the program and respond in kind.
2- Prepare your approach. Rather than a script write down the…
Download the video transcript for this episode here.
Looking for more reverse mortgage tools, training & technology? Visit ReverseFocus.com today.
The Financial Assessment Released
The long anticipated, or dreaded depending on your viewpoint, Financial Assessment was announced last week by HUD at the annual National Reverse Mortgage Lenders Association conference in Florida. The new guidelines will go into effect March 2nd, 2015…
Continue readingThe Summer of Change
The remaining months of summer are certain to accelerate further changes to the federally insured reverse mortgage program. First is the long anticpated and often delayed Financial Assessment…
Continue readingInterview with AAG CEO Reza Jahangiri (Part 2)
AAG CEO Reza Jahangiri discusses the future impact of the financial assessment, strategies to succeed in a changing marketplace and more.
Continue readingA Case for the Financial Assessment?
The chief concern amongst many is the new financial guidelines will further shrink the pool of eligible borrowers at a time when reverse mortgage production is low. However there is another facet of the financial assessment that can be easily overlooked; reducing headline risk.
Continue readingFinancial Assessment: Industry Asks for Changes
NRMLA has asked for both changes & clarification of the upcoming financial assessment
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