On the Docket
You might think the punishing summer heat would slow things down in Washington, but the release of the CFPB report June 28 and planning for our Annual Meeting & Expo in October have evaporated that notion. The report included a request for answers to a series of questions about factors influencing consumer decisions and long-term outcomes for borrowers. At NRMLA, we view this as an opportunity for the industry to have a voice in what is yet to come from the bureau. And so, on a weekly basis, we’ve been assembling a large cross section of board members from companies across the country to answer these questions.
You may have noticed the report was light on data and dependent upon anecdotal evidence. We feel part of our role in the follow-up is to accumulate the rest of the data to make sure the conclusions are evidence-based, rather than merely speculative. A wide swath of our membership—lenders, loan servicers and
industry analysts—is collaborating to compile information with a sense of urgency so we can meet the August 31 deadline.
Over the past few years, product innovation has attracted
Our Risk and Compliance Committee is finalizing its work on a Model Reverse Mortgage Disclosure with some new directional insights gleaned from the CFPB’s proposed rule in regard to Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z). While this proposed rule specifically excludes reverse mortgages, the committee has gathered valuable insight into the bureau’s thinking on APRs and other items. The Risk and Compliance Committee is also completing a review of the Conference of State Bank Supervisors Reverse Mortgage Examination Guidelines.
Our Ethics Committee continues its monthly meetings to review new complaints, act on complaint resolutions and consider new advertising advisories in response to the CFPB report.
The Servicing Committee is researching REO sale timeframes to begin efforts to work on appraisal-based claims issues with the HUD. NRMLA continues its outreach to HUD’s National Servicing Center.
On the Hill
NRMLA and its political team continued to meet and coordinate with key members of the Senate Appropriations subcommittee to secure HUD-requested funding for counseling and an extension of the suspension of the HECM authorization cap. We are not confident this bill will actually make it to the full Senate, and may result in a Continuing Resolution (CR). We will be working to protect this vital funding for counseling, as well as the cap suspension, if there is a CR.
NRMLA executive staff met with key members from both parties of the Senate Banking Committee to discuss reverse mortgages and some of the more technical issues facing the industry.
In the States
Our State and Local Committee continues to work on legislation in California and Massachusetts, which call for various requirements on face-to-face counseling. This committee is also coordinating with the Texas Mortgage Bankers Association on submitting language that would allow for HECM for Purchase in that state.