Lenders join forces to clean up wetlands in New Orleans

Reverse Mortgage Lenders Join Forces To Clean Up New Orleans Wetlands

Community One a public service division of Security One Lending Corp. based in San Diego, CA, in cooperation with Project 195 Wetlands Restoration, Reverse Mortgage Daily, Generation Mortgage and several other lenders joined forces to volunteer and clean up a local wetland area and park. It was incredibly wet, hard work but so worth it to spend time with our fellow reverse mortgage colleagues. Watch the video below.

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New Video: Industry Update #3

Reverse Mortgage Floor Change

Weekly video recap updating professionals on industry changes in the reverse mortgage marketplace. Return here each Friday for new videos.

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HUD Letter

New Change In The Floor
This week was a game changer in the reverse mortgage industry when HUD announced a new change in the floor. Watch the video for more.

Before & After: The Financial Interview Tool & HUD Counseling

HUD Reverse Mortgage Counseling Financial Interview Tool

HUD Reverse Mortgage Counseling Financial Interview Tool Benefits

Part 1 (Your thoughts before…)

This week (September 11th) begins the implementation of the Financial Interview Tool & Benefits Check Up (BCU) as part of HUD counseling for all reverse mortgage applicants.

Please give us your thoughts (positive or negative) on this new protocol and questions to be covered. We want your perceptions before the protocol goes into effect, and after you and your clients have had some experience with the new protocol.Continue reading

Time Magazine: Another ignorant smear piece on reverse mortgages

Time Magazine: Ignorant Smear Piece On Reverse MortgagesI couldn’t read this “journalistic” (too use the term loosely) hit piece (Six Problems the Consumer Financial Protection Bureau Should Tackle First) and not respond. Below is my letter to the editor of Time Magazine requesting a retraction…

Dear Editor,

As a reverse mortgage professional I am writing about your publication’s recent story published July 6th highlighting reverse mortgages as one of the six problem areas that the new Consumer Financial Protection Bureau needs to address. After reading my comments I would ask that your publication publish a retraction or correction in fairness to your readers who deserve the truth. Unfortunately, such retractions are much like trying to pick up feathers scattered in the wind.

Continue reading

Did we just dodge a bullet?

If a mental picture comes to mind for the reverse mortgage industry it is the character “Neo” in the Matrix leaning back impossibly as he dodges bullets in slow motion. The question is, have we as an industry just dodged a bullet with the recent approval of the $150 million…

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Mortgage brokers no longer allowed to order FHA appraisals…

Federal Housing Administration Policy Changes

Federal Housing Administration Policy Changes

The Federal Housing Administration (FHA) today announced several significant policy changes that are intended to improve their exposure to risk.  The changes, effective January 1, include:

  • Modification of Procedures for Streamline Refinance Transactions
  • Adoption of Home Valuation Code of Conduct Guidelines (some not all)
  • Updated Appraisal Validity Period
  • New Appraisal Portability Regs
  • New Requirement of Lenders to Submit of Audited Financial Statements for Review
  • Adjustments to the Approval Process for Participation in FHA Loan Origination
  • Increased Net-Worth Requirements for Lenders

Grabbing the attention of mortgage professionals was FHA’s decision to adopt language from HVCC appraisal guidelines. The HVCC, which has been the subject of heated debate within the industry, was implemented by Fannie Mae and Freddie Mac on May 1, 2009. At that time the FHA decided not to adhere to the policy. This undoubtedly increased demand for FHA loan products as originators quickly learned of the multitude of problems associated with HVCC. The new requirements will prohibit any commissioned based lender staff member from ordering an FHA appraisal.

FHA will not require the use of AMCs or other third party organizations for appraisal ordering, if lenders do use AMCs and/or other third party organizationsFHA-approved lenders must ensure that:

  • FHA Appraisers are not prohibited by the lender, AMC or other third party, from recording the fee the appraiser was paid for the performance of the appraisal in the appraisal report.
  • FHA Roster appraisers are compensated at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised.
  • The fee for the actual completion of an FHA appraisal may not include a fee for management of the appraisal process or any activity other than the performance of the appraisal.
  • Any management fees charged by an AMC or other third party must be foractual services related to ordering, processing or reviewing of appraisalsperformed for FHA financing.
  • AMC and other third party fees must not exceed what is customary and reasonable for such services provided in the market area of the property being appraised.

FHA issued five new mortgage letters explaining the policy changes. Here are links to each mortgagee letter:

Mortgagee Letter 09-28: Appraiser Independence

Mortgagee Letter 09-29: Appraisal Portability

Mortgagee Letter 09-30: Appraisal Validity Periods

Mortgagee Letter 09-31: Strengthening Counter Party Risk Periods

Mortgagee Letter 09-32: Revised Streamline Refinance Transactions

MetLife Releases Study on Reverse Mortgages

MetLife Study On Reverse Mortgages

As more seniors tap into their home equity to deal with the growing uncertainties of retirement, a report released by the MetLife Mature Market Institute calls for a comprehensive approach to educate and protect seniors on how to use home equity for financial planning.

Approximately 14% of seniors are taking cash out of their house through either a home equity loan or reverse mortgage, according to “Tapping Home Equity in Retirement: The MetLife Study on the Changing Role of Home Equity and Reverse Mortgages,” released yesterday. It found 35% viewed their home as collateral for a loan.

The study, jointly conducted with the National Council on Aging, indicates that older homeowners are using home equity to increase income security, to deal with unexpected expenses, and to improve debt management, according to a news statement. It highlights options such as using a reverse mortgage for delaying Social Security collection, consolidating credit card debt, and for paying out-of-pocket home and health care expenses with the credit line option.

“Our research on baby boomers indicates that they are more open than previous generations to tapping home equity and considering reverse mortgages to help fund their retirement,” said Sandra Timmermann, director of the MetLife Mature Market Institute, in the statement. “With the right guidance and policy protection, reverse mortgages can be an important financial option for boomers who do not have adequate savings.”

The report emphasizes that consumer education must be part of any new efforts aimed at increasing the use of reverse mortgages.

“The financial services industry, policymakers, and consumer advocates cannot be complacent about the potential benefits and risks of using home equity to address the challenges facing older Americans,” said Barbara R. Stucki, director of the NCOA’s Reverse Mortgage Initiative, in the statement. “We need to work together to educate consumers, create cost-effective financial products, and promote public policies that strengthen consumer protections for older homeowners.”

To complement the study, MetLife released “The Essentials: Reverse Mortgages,” a free guide to consumers.