Closing Complex Loans Faster With a Digitized Client Workflow

Join us for a discussion on changes in market demographics, suppliers and how focusing on customer experience and a few simple steps during the mortgage loan process can close deals 3x faster.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

The digital journey starts at acquisition

Download this white paper to learn how to build a tech-enabled acquisition strategy that will directly contribute to a lender’s ability to maximize profitability and remain competitive.

Mortgage

D.C. housing agency launches program to help delinquent reverse mortgage borrowers

Provides financial assistance to seniors facing foreclosure

A D.C.-based housing agency recently launched a program to help reverse mortgage borrowers facing foreclosure because of their failure to pay property taxes and homeowners insurance.

Called ReMIT, which stands of Reverse Mortgage Insurance and Taxes, the program aims to prevent HECM borrowers from losing their homes because they cannot afford the tax and insurance payments required to comply with the terms of the loan.

According to Todd Lee, executive director and CEO of the District of Columbia Finance Housing Agency, the need was first brought to light by D.C.’s Committee on Housing and Neighborhood Revitalization, which found that a number of reverse mortgage borrowers in the nation’s capital were facing default.

The committee allotted funds in its 2019 budget for the cause and tasked the DCHFA with creating a program that would help save these borrowers from foreclosure.

“Property tax rates have risen in the District as a result of the value of its real estate increasing at a rapid pace,” Lee said. “Unfortunately for seniors, their incomes have not increased along with the value of their homes and their higher property tax bills.”

Lee said that data from the National Reverse Mortgage Lenders Association indicates there are currently 2,246 reverse mortgage loans in the District. Of those, just over 11% are in some stage of delinquency or foreclosure due to nonpayment of taxes and insurance.

Lee said 140 – or 6% – of delinquent mortgages are in default but are not yet in a loss mitigation payment plan.

“Mortgage servicers have reported to DCHFA that there are 325 reverse mortgage holders that are currently in default in Washington, D.C.,” Lee said. “DCHFA anticipates assisting at least 50 homeowners with reverse mortgages.”

While this may not seem like a great number of borrowers will receive help through this program, Lee said he thinks the concept could be easily applied in other parts of the nation with a high percentage of loans in default.

“The response from mortgage servicers has been extreme excitement,” Lee said. “We believe that this program is replicable and would certainly be beneficial nationally, particularly in areas where the cost of insurance and property taxes have risen dramatically, creating a financial burden for senior citizens.”

Most Popular Articles

Fannie Mae, and the housing market’s inflation problem

Another month of steadily increasing home prices and insatiable demand led Fannie Mae’s Economic and Strategic Research Group to alter many of its 2021 predictions – in particular, its outlook on the symbiotic relationship between the housing market and inflation measures.

Jun 16, 2021 By

Latest Articles

Doug Duncan and the housing market’s supply conundrum

The housing market has suffered due to high material prices, spend-anything buyers & a lack of supply. A return to normalcy will require big changes. HW+ Premium Content

Jun 18, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please