Reverse

Appeals court revives class-action suit against Nationstar for redundant flood insurance

Reverse mortgage borrower alleges "improper" insurance cost her thousands
A federal appeals court in Florida overturned a previous ruling last week that will mean Nationstar will now have to face allegations from a reverse mortgage borrower that it violated Florida law by charging homeowners for unnecessary flood insurance. The ruling could unleash a wave of trouble for the servicer, who now must face the possibility that the class-action suit will bring other such stories to light.
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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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Figure Technologies lands $1 billion blockchain investment to revolutionize HELOC lending

Partnership with Jefferies and WSFS Institutional Services creates massive financing facility
Blockchain lending startup Figure Technologies launched with a promise to disrupt home equity lending using cutting-edge technology, and it appears to be well on its way to achieving this mission. The company announced Thursday that it closed on an asset-based financing facility on blockchain of up to $1 billion alongside Jefferies and WSFS Institutional Services. CEO Mike Cagney said the facility "paves the way for the first securitization on chain, which will demonstrate the massive cost savings, risk reduction and liquidity benefits blockchain delivers."
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Sale-leaseback company EasyKnock announces $215 million capital raise, launches new product for home shoppers

Will buy your house from you, then let you live there while you shop around
Sale-leaseback company EasyKnock just scored a massive cash infusion, announcing that it has secured $215 million in a debt-equity round, and launched a new product, a play off the sale-leaseback concept marketed toward homeowners looking to buy their next home. The new offering promises to edge out iBuyers with a quick sale at a better rate, plus the ability to let customers stay put while they contemplate their next move, cash in hand.
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These are the ZIP codes where homeowners hold the most equity

No surprise, California markets top the list
More than a quarter of mortgaged properties in the U.S. were rich with equity in the first quarter of 2019, according to the latest from ATTOM Data Solutions. That means that 14.4 million U.S. properties are equity-rich. Here's where the greatest number of them are located.
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Ocwen's reverse mortgage business has stellar Q1

Liberty Home Equity Solutions reaps profits despite down HECM market
Ocwen Financial's business didn't fare so well in the first quarter of the year, but it seems its reverse mortgage business is doing just fine. Liberty Home Equity Solutions, the reverse mortgage division of Ocwen based in Rancho Cordova, California, boosted its parent company’s profits with a $24 million gain of pre-tax income in Q1 2019 – no small feat considering the HECM market's staggeringly low volume as of late.
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Live Well Financial laying off 103 employees; blames closure on market, regulatory issues

Virginia headquarters shuttered
Virginia-based Live Well Financial announced Friday that it was ceasing originations "due to unexpected circumstances." The forward and reverse mortgage lender and servicer also filed a notice with the Virginia Employment Commission informing the state of its closing and subsequent layoff of 103 employees in Richmond, Virginia, and stating that conditions outside the company’s control led to the sudden closing of all its operations in their entirety.
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D.C. housing agency launches program to help delinquent reverse mortgage borrowers

Provides financial assistance to seniors facing foreclosure
A D.C.-based housing agency recently launched a program to help reverse mortgage borrowers facing foreclosure because of their failure to pay property taxes and homeowners insurance. While only available to help borrowers in the district, the program could be replicated in other parts of the country with a high percentage of HECM loans in default.
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The 55+ housing market is booming

Builder confidence in this sector reaches record high
The 55+ housing market is thriving right now as more Baby Boomers look to invest in a new nest to live out their retirement dreams. With scores of older adults looking at new single- and multifamily builds, homebuilder confidence in this market has soared to a record high. But affordability concerns loom, leaving some mortgage professionals to point to a financing option designed specifically for this market.
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