Current And Up-To-Date Reverse Mortgage News...02-02-10

This is our monthly summary of Reverse Mortgage articles, updated news, and happenings, all in one place. We hope you're involved in the greatest mortgage niche ever created...Reverse Mortgages.

FHA Raises Bar for Forward and Reverse Mortgage Brokers
Jan 28, 2010 04:12 pm | Neil

A proposal by FHA to eliminate correspondents and raise the bar on mortgage brokers – both forward and reverse – may have a silver lining for several industry players. Possible increases in net worth requirements, strengthened lender approval criteria and greater lender liability for the practices of wholesale clients, appear on the surface to spell...

Reverse Mortgage Legislation Update: January 28, 2010
Jan 28, 2010 02:38 pm | Reva

President Barack Obama gave his first State of the Union address last night where he announced plans to freeze government spending starting in 2011 for three years. While the President announced that spending related to national security, Medicare, Medicaid, and social security would not be affected by the freeze, it remains unclear how the freeze...

Got Reverse? Industry Needs to Deliver Effective PR Campaign Now
Jan 27, 2010 11:58 am | Reza

It is clear to all reverse mortgage participants that something has to be done to improve our image. It was the reoccurring theme at the recent NRMLA conference. But talk can be cheap and without a coordinated, concerted effort to take control of our public perception, we may struggle to convince lawmakers, regulators, seniors and...

Reverse Mortgage Industry Reaches 2% Market Penetration
Jan 27, 2010 11:53 am | admin

The reverse mortgage industry has crossed the 2% overall penetration level according to Reverse Market Insight. The penetration level is the total active reverse mortgages in servicing today as a percentage of all senior homeowner households. Through November, states with the highest level of penetration are DC with 7.3% followed by NV and CA at...

FHA Takes Action Against Reverse Mortgage Lender for Advertising Practices
Jan 26, 2010 03:52 pm | admin

The Federal Housing Administration’s Mortgagee Review Board (MRB) announced yesterday that it was taking action against Cooper and Shein, LLC (dba Great Oak Lending Partners) for misleading advertising practices. The Timonium, MD based lender was placed on probation for a period of six months and the MRB imposed a monetary penalty in the amount of $11,000...

FHA Takes Action Against 4 Lenders
Jan 26, 2010 01:01 pm | admin

The Federal Housing Administration’s Mortgagee Review Board (MRB) announced it’s permanently withdrawing the FHA approval of three mortgage lenders and is suspending a fourth. The MRB withdrew the FHA approval of Strategic Mortgage Corporation (Strategic), ProMortgage Inc., and Americare Investment Group Inc. (doing business as Premier Capital Lending. Additionally, the MRB has suspended the FHA approval...

FHA and Ginnie Mae Withdraw Topdot Approval
Jan 26, 2010 12:25 pm | admin

The Federal Housing Administration’s Mortgagee Review Board (MRB) permanently withdrew the FHA approval of Premium Capital Funding, LLC, a Jericho, New York based lender doing business as TopDot Mortgage. The action prevents TopDot from participating in FHA programs and seeks a monetary penalty of $674,000. In addition, the Government National Mortgage Association (Ginnie Mae) is...

Eliminate Fannie Mae? The Impact on the Reverse Mortgage Industry
Jan 25, 2010 02:22 pm | admin

Housing Financial Services Committee Chairman Barney Frank said that the committee will examine ways to replace the two housing government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac "The remedy here is…as I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system...

HUD Publishes Suspension Policy for Lenders
Jan 25, 2010 02:12 pm | admin

The Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2010-03 to announce it will be using its regulatory authority to terminate a mortgagee’s authorization to underwrite single family loans in geographic areas where the lender has a high rate of early defaults and claims. Currently, HUD exercises its authority to terminate only the loan...

To the reverse mortgage survivors go the spoils
Jan 24, 2010 04:25 pm | Neil

If we could really see into the future, we’d all be filthy rich – not to mention happier and healthier – the result of always having winning lottery tickets and avoiding every failing that might come our way. But unable to truly know what lies ahead, we do the next best thing: guess. Reverse mortgage practitioners...

WAPO: Reverse Mortgage Market Has No Resemblance to Subprime Marketplace
Jan 22, 2010 12:35 pm | admin

Washington Post contributor Jack Guttentag writes in his latest column that Reverse mortgages are not the next subprime. He adds that: For reasons not clear to me, reverse mortgages are being bad-mouthed by an unlikely source: consumer groups that are supposed to represent the interest of consumers in general, and seniors in particular. Pointing out that...

Decline in Home Prices Has Significant Impact on Value of HECM Portfolio
Jan 22, 2010 12:06 pm | Reva

The current economic crisis and burst of the housing bubble has had a significant impact on the reverse mortgage guarantee provided by HUD on HECM loans according to an article by Jonathan Glowacki and Mike Jacobson of Milliman on Friday at Mortgage News Daily. The extremely technical article on the economic basis for the future of...

NMLS Website Hopes to Bring Greater Transparency to Mortgage Industry
Jan 21, 2010 12:40 pm | admin

Reverse mortgage loan originator licensing information will be made publicly available through the Nationwide Mortgage Licensing System Consumer Access on January 25, 2010. According to the NMLS Resource Center, the website is being launched to bring greater transparency to the mortgage industry and to comply with provisions of the SAFE Act. Developed for consumers, the searchable...

FHA Announces Significant Policy Changes
Jan 20, 2010 11:51 am | Reva

Federal Housing Authority (FHA) Commissioner David Stevens announced a sweeping series of policy changes this morning to address concerns about FHA’s capital reserves and strengthen the agency against further risk. The policy changes include an increase in the MIP, updating the combination of FICO scores and down payments required for new borrowers, reducing the percentage...

Reverse Mortgages Help the “Greatest Generation”
Jan 15, 2010 02:41 pm | Neil

Some reverse mortgage originators are on a mission. Theirs is a business endeavor first, but close behind the motivation for getting into this niche market can be personal, as it is for Michael Banner of Loan Well America in Clearwater, Fla. “I decided to go into reverse mortgages because it helps the ‘greatest generation’,” Banner...

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Tom Domin is the author of "101 Ways to Originate Mortgages" and publisher of "Tom's Mortgage Tips" a twice monthly Mortgage Newsletter geared for Mortgage Professionals. Put your mortgage career on the fast track and sign-up for FREE at http://www.MortgageMarketingToolKit.com/