Reverse

SEC, FBI reportedly investigating Live Well Financial collapse

Creditors' court documents say authorities are looking into defunct lender and its CEO
Trouble continues to brew for Live Well Financial, the forward and reverse mortgage lender that unexpectedly went bust last month, as court documents reveal that authorities are looking into the lender. According to documents filed by Live Well’s creditors, the SEC, the U.S. Attorney's Office in the Southern District of New York, and the FBI’s Bank Fraud Division have all been poking around for information on Live Well’s dealings.
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Creditors try to force Live Well Financial into bankruptcy

File petition for involuntary bankruptcy to recover $130 million
In May, Live Well Financial abruptly shuttered operations, saying it would no longer be funding forward or reverse mortgage loans. Now, three of its creditors are taking measures to get their investments back, filing a court petition seeking to force Live Well into Chapter 7 bankruptcy and hurling allegations of mismanagement at the defunct mortgage lender.
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Ditech selling forward, reverse mortgage businesses

New Residential Investment snaps up forward book, Mortgage Assets Management buys reverse
Ditech Holding is selling its forward and reverse mortgage businesses, the company announced Tuesday. New Residential Investment has agreed to purchase the stock and assets of Ditech’s forward mortgage originations and servicing business, while Mortgage Assets Management will acquire the stock and assets of Ditech’s reverse mortgage business, Reverse Mortgage Solutions.
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USA Today blasts reverse mortgages, industry fights back

Trade association says reporters jumbled the facts, skimmed over rule changes
Last week, USA Today released a scathing investigative story that took aim at reverse mortgages, blasting lenders for targeting impoverished, elderly homeowners and leading a substantial number of them into foreclosure. Then, it followed it up with an even more damning op-ed by its Editorial Board. The National Reverse Mortgage Lenders Association fought back with its own op-ed on the matter, calling out the publication for failing to tell the full story.
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Alabama-based Hometown Lenders launches HECM division

Adopts ReverseVision technology to support new channel
Alabama-based mortgage lender Hometown Lenders announced Thursday that it’s launching a reverse mortgage division, employing ReverseVision’s HECM technology to support its effort. This makes Hometown the second lender in the last month to launch a HECM division using ReverseVision technology, apparently finding merit in the "generational lending" strategy RV promotes.
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Older homeowners are spending big on home improvements

Harvard study says aging homeowners will drive this market
Home improvement spending continues to trend upward, with the latest data from Harvard’s Joint Center for Housing Studies putting the aggregate total at a new high of $424 billion. The home improvement sector can thank the Baby Boomers for that, as research shows older homeowners are spending big on home renovations and aren't expected to slow down anytime soon.
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HUD: Reverse mortgages continue drain on FHA insurance fund

Subsidy rate holds steady in Q2 as program becomes more burdensome for FHA
Reverse mortgage volume has been rather abysmal as of late, and second quarter data from HUD doesn't provide many bright spots. In its Q2 report to Congress on the state of the FHA’s flagship insurance Fund, HUD reveals that the reverse mortgage program continues to be a drain.
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Home equity gains continue to slow

Homeowners see returns slip as home-price growth moderates
The average homeowner gained $6,400 in home equity in 12 months’ time as of the first quarter of the year, according to the latest CoreLogic data. While on its face that might seem like a solid return for zero work, a brief look at historical gains reveals that, well, maybe not so much.
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Experts: There's an urgent need to stabilize the reverse mortgage program

Say HECMs the only means for low-income seniors to age in place
A group of experts on aging and retirement gathered at a private meeting hosted by the Urban Institute to discuss the retirement crisis looming over the country's older population, and one thing was abundantly clear: We must find a better way to monetize home equity. For starters, urgent fixes are needed to stabilize and improve the reverse mortgage program.
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From HW Magazine

AAG changes the conversation around the use of home equity

AAG's new brand message, "Retire Better" focuses on thoughtful and personalized solutions
Within AAG’s wholesale division, the feedback the company continued to hear from its brokers (some 800+ of them) is that borrowers and family members are still being influenced by old assumptions about HECM products, which have changed significantly since they were introduced by the Reagan administration in 1989. New regulations have improved standards and added safeguards, to further protect older Americans, making home equity mortgages now another option as a strategic financial planning tool for many seniors.
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