Reverse

The problem with getting a reverse mortgage on a condo

With FHA spot approval a distant memory, originators struggle to help condo owners secure a HECM
Ever since the FHA eliminated spot approvals for condominiums, reverse mortgage originators have logged countless hours helping prospective borrowers secure a HECM on their condo – sometimes to no avail. And, with HUD dragging its feet on finalizing rules that would bring back spot approval for FHA loans, it doesn't seem like things will change any time soon. Will non-agency reverses provide the answer?
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Reverse mortgage volume plunges 31.4%

Industry sees second consecutive month of 14-year lows
The reverse mortgage program can't seem to find its footing in the wake of program changes issued in October 2017. Since the endorsement totals began to reflect the new guidelines, volume has been shaky, but so far, December takes the cake, closing out with a steep 31.4% decline – a low the industry hasn't seen since January 2004.
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Government shutdown halts reverse mortgage endorsements

FHA's limited operations to impact HECM lending
With the government shutdown approaching the two-week mark, reverse mortgage endorsements have ground to a halt. The FHA released a notice stating it will not be making insurance endorsements for HECM loans during the shutdown, and lenders with issues regarding the second-appraisal protocol will be out of luck.
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BofA: Home equity lending will be flat in 2019

Here's why
Some market analysts have predicted a pending boom in home equity lending, while others are not so sure. Bank of America sits firmly in the latter group. "There’s a case for it, and there’s a case against it," said SVP of Consumer Lending David Doyle, enumerating the reasons why "we do not predict it will explode."
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Should reverse mortgages be pulled from FHA's MMI Fund?

Experts say yes, and here's why
The FHA’s recent report to Congress on the health of its flagship insurance fund revealed the HECM’s continued drain, renewing calls from some to remove reverse mortgages from the Mutual Mortgage Insurance Fund. The Urban Institute’s Laurie Goodman and Edward Golding explained to HousingWire why separating the two portfolios makes sense.
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Reverse mortgage servicer Celink settles lawsuit for $4.25 million

Suit alleges Celink wrongfully collected interest on FHA insurance
Celink settled a federal lawsuit regarding allegations that it violated the False Claims Act in relation to its servicing of reverse mortgage loans. The Michigan-based servicer agreed to shell out $4.25 million to resolve the claim that it wrongfully collected interest on FHA insurance for five years.
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This is how reverse mortgage originators will succeed in 2019

"Efficiency is the name of the game"
Reverse mortgage volume is in a slump – and some predict 2019 is likely to be another challenging year. "The individuals who are going to succeed in a contracting market are those who find a way to innovate to continue to contact customers and those who persist when others leave the marketplace," said ReverseFocus President Shannon Hicks, who offers his tips for finding success in the year ahead.
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Alternative equity release products give homeowners another choice

Homeownership investors and sale-leaseback companies offer debt-free equity access
For most people looking to tap their equity, a home equity loan or line of credit is the traditional route. But now, a number of innovative products have come to market that help homeowners tap into their equity – without incurring any debt. Here's a rundown of some of the alternative equity release products on the market right now.
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Here are the top 10 reverse mortgage stories of 2018

A recap of the news that caught your attention this year
It’s been an eventful year in the reverse mortgage industry. The HECM space saw new proprietary products enter the market, adjusted to a new second-appraisal rule, and witnessed volume plummet. We drilled down on our article stats to find out what reverse mortgage stories got the most attention this year, shedding light on the topics our audience found most interesting in 2018.
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