Reverse

Underwriting: Reform Brings Consequences for Originators

I was somewhat taken aback by a comment made by a mortgage professional during a recent holiday gathering. In essence, they said, "Besides, now that we are all TPOs, it is all the lenders’ responsibility and problem – they will tell us what to do, we just originate and process …” My reaction was a nervous thought: How many other mortgage professionals feel similarly? Have we gotten to a point where our ability to participate and perform in an industry has been so conflicted by change that – somewhat in desperation – the production force has embraced a mindless approach
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Older Workers Reach Record High

According to a report from the Employee Benefit Research Institute, the proportion of individuals who continue to work after age 55 has reached a record high.  Data from the U.S. Census Bureau indicates that the percentage of workers aged 55 or older has increased from a low in 1993 of 29.4 percent to 40.2 percent in 2010.   Older women who continue to work has seen a steady increase since 1993.  Staying in the 22 to 23 percent range from 1975 to 1993, increasing to 35.1 in 2010 For men, the percentage fell from a high of 49.3. percent
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WSJ: Boomers 401K Accounts Fall Short

According to a report in the Wall Street Journal, the typical household headed by a person aged 60-62 with a 401(k) account has less than one-quarter of the amount necessary to maintain their standard of living in retirement.  The analysis conducted by the Center for Retirement Research at Boston College utilized data compiled by the Federal Reserve. Using estimates of 401(k) balances from the end of 2010, the report reviewed the income those amounts would provide in retirement as compared to estimated income needs in retirement.  As a benchmark, the report used an assumption that retirees would need 85%
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NRMLA West 2011

NRMLA released the agenda for the first conference gathering of the year, "NRMLA West 2011: New Requirements, New Relationships," at the Fairmont Hotel in Newport Beach on March 15 and 16.  The day and a half general session, beginning at 10:00 AM on Tuesday, March 15th focuses on regulatory reform, survival, and understanding the current landscape in the reverse mortgage market. The first day takes aim at regulatory reform with sessions designed to break down the Loan Originator Compensation Rule and the on-going "Tsunami of Regulatory Reform" that continues in the wake of the Dodd-Frank Act and other legislation. 
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S&P/Case Shiller: Home Prices Continue Decline

Incorporating data through December of 2010, the latest S&P/Case-Shiller Home Price Indices indicate that home prices declined by 3.9% in the fourth quarter of 2010, and by 4.1% when compared to the final quarter of 2009. Declines were reported in 18 of the 20 MSAs covered by the indices.  According to David M. Blitzer, Chairman of the Index Committee, the National Index is now within one percentage point of the low established in the first quart of 2009.  Although California did see some gains as Los Angeles, San Diego and San Francisco bounced up from their lows, 11 markets
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FinCEN Issues Advisory on Elder Financial Abuse

The Financial Crimes Enforcement Network (FinCEN), has issued Advisory FIN-2011-A003 notifying the financial industry to be aware of warning signs of potential elder financial exploitation.  Due to familiarity that bank personnel often have with senior clientele, FinCEN, is reminding institutions that they can play a key role in reporting signs of abuse. As some older Americans become more reliant on assistance from caretakers due to declining mental or physical capacities, they become particularly vulnerable to theft, embezzlement, and fraudulent schemes.  Accordingly, the Advisory encourages bank personnel to be aware of common red flags that are indicators potential abuse.  Additionally,
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TRR Interview: Craig Corn

Featured in our March print edition of The Reverse Review, due to be released in the second week of March, I called upon Craig Corn, Vice President of MetLife Bank and executive in charge of their reverse mortgage division.  Craig has been a leader in the industry for over a decade and speaks positively about the prospects of the product, especially the HECM Saver. I originally called on Craig to discuss the impact of Bank of America’s plans to exit the reverse mortgage business and how that would affect their plans and expectations as a leader in the industry. 
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Sentors Urge Regulators to Tread Carefully with Dodd-Frank Act

Republican Senators from the Banking, Housing, and Urban Affairs committee sent a letter to federal regulators urging them to "employ fundamental principles of good regulation" in how they are implementing new rules mandated by the Dodd-Frank Act. Noting that a recent review of Dodd-Frank rule making found that the public comment period on recent rules has been a little over 40 days, the letter reminds regulators that minimum comment period generally required is 60 days.  The Senators suggest that failure to provide sufficient time to evaluate new rules can potentially cause considerable harm to an already weak economy.  
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NPR: Reverse Mortgages a Last Resort

Featuring "Tell Me More's" contributor on matters of personal finance, Alvin Hall, National Public Radio (NPR), ran a segment on reverse mortgages.  It is unfortunate that NPR referred to Hall as an export on such matters because his depiction of reverse mortgages was inaccurate and misinformed.   Opening the segment, host Michael Martin plays a sound bite of an advertisement from American Advisors Group, featuring Fred Thompson.  He then follows with an odd introduction stating that was one of dozens promoting reverse mortgages while Bank of America has exited the business. Hall begins with the standard depiction that reverse
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NAR Explains Benchmark Drift

In response to recent reports, especially by CoreLogic that the National Association of Realtors' (NAR) Existing Home Sales data was overstated by as much as 15% to 20%, NAR released a new Frequently Asked Questions (FAQ) section to their website explaining the benchmarking process and discussing revisions to the process. Without acknowledging potential errors in the data, NAR explained that the benchmarks used to calculate changes in home sales use the U.S. Census data compiled once every ten years.  They noted that following the 2000 Census, they identified an upward drift in their data estimated at 13 percent that
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