Reverse

Originating: A Unique and Unlikely Referral Partner

Last month, my article for The Reverse Review focused on my theory of having a smaller number – but a higher quality – of referral sources. I must say, I received many comments on this stance. Some were positive and agreed that they would implement the same strategy. Others felt I had gone over the cliff. That’s OK; it’s all about having an open discussion. I have discovered one type of referral source that Brian and I will certainly be cultivating going forward. A few weeks ago we got a call from a title representative who we have both known
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Home Prices Stutter Start in 2011

Home prices opened 2011 with further deceleration in the annual growth rates according to the latest data from the S&P/Case-Shiller Home Price Indices.  With data compiled through January, the 10-city composite posted a drop of 3.1 percent from January 2010. According to the data, only two Mesas', San Diego (.01%) and Washington D.C. (3.6%) recorded positive year-over-year changes. “Keeping with the trends set in late 2010, January brings us weakening home prices with no real hope in sight for the near future” says David M. Blister, Chairman of the Index Committee at Standard & Poor's.  “These data confirm what
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NAR Estimates Size of Shadow Inventory

The National Association of Realtors (NAR) has compiled state by stated foreclosure and delinquency data in an effort to estimate the impact of the shadow inventory on the housing market.  In referring to "shadow inventory," the research strives to approximate the number of homes that are either already in a foreclosure process, or in serious delinquency, but have not yet reached the resale market as foreclosure or bank owned sales. Although the number of loans in serious delinquencies (90+ days late) decreased by 38 percent nationally in the last quarter of 2010, there is a significant number of properties
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Originating: The Underlying Threat of Identity Theft

 The Red Flags Rule is enforced by the Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration. The Red Flags Rule, in effect since January 1, 2008, requires many businesses and organizations to implement a written Identity Theft Prevention Program designed to detect the warning signs – or “red flags” – of identity theft in their day-to-day operations, take steps to prevent crime, and mitigate the damage it inflicts. By identifying red flags in advance, businesses will be better equipped to spot suspicious patterns when they arise and take the necessary steps to prevent
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The Picture of Retirement

Bringing the picture of retirement to life, The New York Times reported on challenges faced by Susanna Wilson, a 70 year old homeowner in Grass Valley, California who struggles to get by each month on Social Security and limited part-time work.  The review of options available to her, according to a financial planner, include considering a reverse mortgage to bridge the gap. "I can never retire," Ms. Wilson says in describing her situation.  In suggesting the reverse mortgage, the financial planner, Elizabeth Rutter Baer, admits she has never recommended one before, but notes that Ms. Wilson is the "ideal candidate." It
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Originating: Life Estates: The Changes and the Challenges

Vesting, vesting! 1, 2, 3! When it comes to vesting, there are so many options. Trusts, joint tenancy, community property, tenants in common, life estates. What to choose? Only your borrower and their attorney can make that decision. If they do have their property vested in a life estate, a reverse mortgage is not always a lost cause. There could, however, be potential issues that may ultimately delay or prevent closing. A life estate is a form of ownership of real property. It can be created by any of the methods of voluntary transfer allowed by law, i.e., by deed,
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Originating: The Devil is in the Details

Did you see mixed martial artist Anderson Silva’s left foot cave into Belfort’s chin Saturday night? The strike seemed oddly similar to the blow BofA threw at the reverse mortgage world by announcing its departure. It wasn’t too long ago Seattle Mortgage’s acquisition by the largest bank in America garnered tremendous attention while validating our industry. It was a double-decker jack that gave every company in the arena a reason to celebrate and pine to be the next Seattle. Whispers had the purchase price near $200 million, legitimizing the true arrival of the HECM line, while stamping the quality of
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Originating: Do Changes Made in 2010 Pose a Danger for 2011?

2010 was a year many of us would like to forget. We all saw and experienced many changes, especially in the reverse mortgage industry. With the industry preparing for changes to come down the pipeline, we take a look back at what may have had a hand in creating a shift in our industry. •The SAFE Act affected the entire mortgage banking industry. It is now March and we are still wrestling with the agony of conforming to it. •The reverse mortgage industry experienced a tremendous amount of bad publicity, much of which was unjustified. Because of this, many of
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Underwriting: Back to the Basics on Quality Control

In last month’s column, information was provided suggesting increased lender scrutiny of quality control plans for third-party originators. The status change from a HUD loan correspondent to a sponsored originator did not change or diminish the need for loan quality control procedures. For those companies participating in the forward loan market, there has been an increase in the profile and perspective with which lenders are assessing loan quality control activities among their customers. It is impossible to pick up an industry publication and be unaware that the agencies, investors, consumer groups and regulators are all pointing fingers at each other
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Originating: You Can Buy a Home with a Reverse Mortgage?

“I didn’t know that!” That’s what I heard last week from 12 owners of real estate offices representing more than 110 agents. I had just given a presentation called “HECMs for Purchase,” the use of a reverse mortgage to buy a new home. Those incredulous real estate agents are not alone! Even experienced reverse loan officers do not understand how the “P-HECM” can improve the lives of seniors, with the bonus of adding an entirely new referral source to the mortgage broker’s database. Will you take the lead and be the first P-HECM trusted advisor in your marketplace?   How
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