Friday Round-Up: HUD Plans to ‘Mystery Shop’ Reverse Mortgage Lenders

Congratulations on making it to another Friday—the weekend is in sight! A lot has happened in the past seven days, but in case you missed it, here’s what went down in reverse mortgage news this week:

HUD Plans to ‘Mystery Shop’ Lenders for Reverse Mortgage Counselor Steering—Reverse mortgage lenders may soon find themselves subject to random “mystery shopping” to ensure they aren’t illegally steering prospective loan applicants to HECM counseling agencies, according to comments made by one official from the Department of Housing and Urban Development during an industry event last week.

Judge Rules One Reverse, Quicken Companies Violated Labor Rules—A judge last week ruled that Quicken Loans and several members of its family of companies, including top-10 reverse mortgage lender One Reverse Mortgage, violated certain provisions of the National Labor Relations Act by way of a company handbook distributed to employees. The ruling is the latest action in the court proceedings, which have been ongoing since early 2015.

Reverse Mortgages Are the Epitome of Retirement Planning Efficiency—Effective retirement planning allows investors to maintain their lifestyles while also preserving a greater legacy. When it comes to creating a retirement income plan that achieves both of these goals, reverse mortgages are the epitome of efficient planning, said one retirement income expert during a reverse mortgage industry event in New York City last week.

Wells Fargo Enters $1.2 Billion Settlement Over FHA Lending Practices—Late last week, Wells Fargo Bank, (NYSE: WFC) agreed to pay $1.2 billion to settle civil mortgage fraud claims stemming from the company’s participation in the Federal Housing Administration’s Direct Endorsement Lender program. The settlement is the largest recovery for loan origination violations in FHA’s history.

Fiduciary Rule Prompts Advisers to Consider Reverse Mortgages—On April 6, the Department of Labor issued its final rule expanding the fiduciary standards for financial services professionals who provide compensation-based advice. A game-changer for the financial services industry, the unintended effects of tis long-awaited rule could prompt more advisers to consider the use of reverse mortgages in retirement income planning, according to one financial planning professional.

Written by Jason Oliva

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