Articles Tagged with ''Brian Montgomery''

FHA's Montgomery says "more flexible" condo rules are coming

Says agency is actively working to revise condo approval requirements
FHA Commissioner Brian Montgomery said the agency is currently working to revise its condominium approval rules and that he expects a final rule to be announced soon. After a near three-year wait, Montgomery said the industry can expect a final ruling on the proposed revisions that will be "less prescriptive and more reflective of the current market."
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FHA clarifies certification requirements to streamline HECM lending

Proposes updates to annual and loan-level docs, does away with "jumbled legalese"
The Federal Housing Administration is clarifying its rules to ease compliance concerns and encourage more banks and lenders to participate in its mortgage lending programs. Among the proposed changes are revisions to HECM loan-level documents that are intended to reduce confusion. Click the headline for details.
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FHA clarifies rules to attract more participants to its mortgage lending program

Says its jumbled legalese has scared away banks, and it wants to bring them back
The Federal Housing Administration wants more banks to participate in its mortgage program and it’s clarifying its rules to ease their compliance concerns. On Thursday, the FHA released proposed clarifications to its annual and loan-level certification requirements, as well as updated language describing what constitutes a defective loan, hoping that swapping out "jumbled legalese" with "plain English" will attract more players.
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FHA eliminates two "unnecessary and outdated" lending roadblocks

Makes good on promise to streamline procedures
The Federal Housing Administration has taken steps to reduce some of the regulatory burdens that belabor the lending process, releasing two mortgagee letters Tuesday with updated guidelines on home warranty and inspection requirements for single-family FHA loans. FHA Commissioner Brian Montgomery said the moves align with the administration's goal to streamline and update guidelines in an effort to reduce regulatory barriers.
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A look back at 2018's HECM highlights

Recapping the major reverse mortgage news of the year
It's been a tumultuous year for the reverse mortgage industry, but that's really nothing new for those who make their living in this line of work. No stranger to change, the HECM space witnessed a good amount of action this year. We've compiled a rundown to give you a review of all that's happened in 2018.
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Do reverse mortgages have occupancy issues?

When someone other than the borrower lives in the home, the FHA may unknowingly be footing the bill
Reverse mortgage borrowers must sign a form every year to confirm that they are living in the property, but without anyone physically verifying that it is, in fact, the borrower signing the form, there's bound to be fraud, and it could be costing the FHA's insurance fund millions.
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FHA automates reverse mortgage second-appraisal process

Lenders will now get an immediate response
The FHA fully automated the second-appraisal process for HECM lenders on Friday, a move it had promised would come by December 1st. Now, lenders will receive an immediate, automatic response on whether or not a second appraisal will be required before the loan can proceed, curbing some concerns about how much time a second appraisal would add to the loan process.
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Former head of FHA and MBA David Stevens blasts reverse mortgages

Suggests fixes to curtail "outrageous profits" and "predatory sales approach"
David Stevens isn’t a fan of reverse mortgages, and he’s not afraid to say it. The former FHA commissioner and recently retired president and CEO of the MBA posted a comment about HECMs on LinkedIn that got people talking. "Brian Montgomery is trying to fix the abuse," he said, "but the product is the one that kept me awake at night when I was there." We reached out to Stevens to talk more about his issues with the program and his suggestions for fixing them.
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Reverse mortgage industry reacts to FHA’s hint at future policy changes

Last week’s actuarial report suggests more change is on the horizon
Last week, FHA’s 2018 Report to Congress revealed the HECM portfolio’s continued drain on the MMI Fund. While the agency said it was optimistic past policy changes would improve the program, it also suggested more change is coming for HECMs. While this wasn’t exactly welcome news for an industry that can’t seem to catch its breath, reverse execs offered a measured response to FHA’s report.
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FHA: No PLF changes for reverse mortgages

Report reveals HECM’s drain, but FHA says it’s moving in the right direction
The Federal Housing Administration released its 2018 Report to Congress on Thursday, revealing that the HECM program continues to be a drain on its flagship Mutual Mortgage Insurance Fund to the tune of $13.63 billion in the last fiscal year. But FHA Commissioner Brian Montgomery said the program is benefiting from policy changes made last year, and that the agency remains "optimistic that the quality of the book will continue to improve."
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