Friday Round-Up: HUD Moves on Non-Borrowing Spouse Issue

In case you missed it, here’s what happened in reverse mortgage news this week.

HUD Says No Relief for Reverse Mortgage Non-Borrowing Spouses in AARP Case and HUD Outlines New Reverse Mortgage Non-Borrowing Spouse Guidance Three years after two non-borrowing spouses of now-deceased reverse mortgage borrowers first filed their case in 2011 claiming they had been unduly foreclosed upon, the Department of Housing and Urban Development has stated that no further relief should be granted to the plaintiffs. Since that recent decision, the agency has issued two new determinations to lenders and servicers, specifying that the lenders holding these loans have the option of electing to assign them to the HUD if certain parameters are met. 

U.S. News: Reverse Mortgages Not Worth the Costs Taking out a reverse mortgage is beneficial “in a very small set of cases” and comes with high costs that should be considered before making a decision, U.S. News & World Report says.  

Nationstar Exits Reverse Mortgage Originations Business Greenlight Financial Services, acquired by Nationstar Mortgage in 2013, will no longer originate reverse mortgages, citing a lack of substantial volume. But Nationstar will continue to service its Home Equity Conversion Mortgage servicing portfolio, valued at $30 billion.  

Reverse Mortgage Volume Drags as Wholesale-Retail Gap Widens A near 20% drop in wholesale endorsements dragged down reverse mortgage volume in April, compared to a 0.2% endorsement growth on the retail side — a gap that is rarely so wide, Reverse Market Insight notes. 

Reverse Mortgages Only Suggested by 7% of Financial Advisers Despite a continuing effort to educate financial advisers, reverse mortgage lenders are stuck with the reality that very few advisers suggest seniors include a reverse mortgage strategy into their retirement income plan. 

Written by Emily Study

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