Reverse

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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Is the FHA about to raise the HECM lending limit?

And what would this mean for reverse mortgages?
Last week, the FHFA raised conforming loan limits for Fannie Mae and Freddie Mac, leaving some to wonder if an increase in HECM loan limits from the FHA will follow. If the FHA opts to increase the limit for the third consecutive year, it could be raised by about $46,000 to $726,525. How will this impact HECMs and what will it mean for the developing proprietary market?
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[Op-ed] How to decide between a HELOC and a cash-out refinance

Here are some variables to consider when thinking about accessing your equity
Home equity loans are on the rise with interest rates convincing more homeowners to stay put, and studies predict this trend isn’t about slow down anytime soon. But if a homeowner is considering using some of their equity, how do they decide between a line of credit and a cash-out refinance? Here are some significant variables to consider.
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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 volume declines

Data reveals complete reversal of previous month's recovery
The reverse mortgage industry continues to fumble in the wake of last year’s program changes, with new data pointing to a complete reversal of previous indicators of market recovery. According to analytics firm Reverse Market Insight, HECM volume rose nearly 10% in August, only to fall about 10% in September.
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Here are the cities with the oldest homeowners

Florida dominates with Pennsylvania close behind
The average age of a homeowner living in the largest metropolitan areas in the U.S. is 54. According to a new study by LendingTree that used Census Bureau data to rank cities by average homeowner age, Florida has the oldest homeowners while Utah has the youngest.
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How to close an FHA-backed reverse mortgage

Sales pro offers tips for mastering the art of HECM origination
Reverse mortgages are somewhat complicated loans designed for older borrowers, and this means that originating them requires a special touch – one that John Luddy has down pat. Known to many in the reverse space for his clever tips for connecting with senior borrowers, Luddy sat down with ReverseReview to share three of his most common roadblocks to closing a HECM and ideas on how to overcome 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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