In case you missed it… here’s what happened in reverse mortgage news this week.
New research showed reverse mortgage benefits in financial planning. A study published in the Journal of Financial Planning found the use of a reverse mortgage Saver as a retirement planning tool greatly improves the financial standing of a household in retirement. Read more about the “standby reverse mortgage” strategy from Texas Tech researchers here.
Knight Capital received a bailout…and analysts said Urban has retained value. Knight received a financial lifeline from a group of investors announced Monday, after stating its reverse mortgage business under Urban Financial was uninterrupted. Also this week, a JP Morgan analyst cited Urban as one of the company’s remaining parts of value.
…Bloomberg reported later on the play-by-play of the Knight crisis. There is a lot more to the story, writes Bloomberg News in a play-by-play of the company’s near-demise.
A Massachusetts bill was signed, delaying a reverse mortgage counseling requirement until 2014. As part of state requirement, the mandate would require that certain borrowers receive counseling in person rather than over the phone. Pending the governor’s signature, the rule did go into effect for several days before signing. It is now delayed until August 2014.
The CFPB proposed new mortgage servicing standards. It said it will look to making changes in the reverse mortgage market once it has established a baseline with forward rulemaking. Officials told RMD this is expected in early 2013.
Written by Elizabeth Ecker
