ReverseReview

Feature: Shifting into Reverse

Reverse mortgages constitute just a small slice of the mortgage market, but in 2017 a number of traditional mortgage originators began to take a closer look at the HECM’s offering. Refi volume on the forward side has been lagging, and the demographics make a compelling case for the HECM’s market potential.Recent data revealed an increase in the number of active HECM originators in 2017, perhaps a sign of the product’s growing appeal. But could HUD’s latest decision to reduce limits and raise initial premiums have a dampening effect on this trend? Volume is likely to slump as lenders once again
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Helping HECM Borrowers in Texas and Florida

Helping HECM Borrowers in Texas and FloridaNRMLA servicing experts offer the following guidance for homeowners impacted by hurricanes Harvey and Irma: Contact your insurance company right away to file a claim if damage has occurred to your home. After that, contact your loan servicer to inform them if damage has occurred to your home. Depending on the severity of the damage, and the amount of funds issued by your insurance company, it may be necessary for the servicer to hold the insurance funds, monitor the progress of the repairs, and disburse out to the contractor (similar to a repair set-aside)
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Originating: The Four Most Important Questions Retirement Advisors Can Ask

It’s no secret that retirement today will last longer than that of past generations, and it’s essential that a client’s retirement income lasts just as long. But how do advisors engage in conversations that reveal client expectations, make the clients aware of their own goals and priorities, and help them make the necessary adjustments to ensure a great retirement?Most skilled advisors already use an initial consultation/annual review questionnaire. Recently, I’ve discovered the immense value in tailoring these questions for each client. I developed a strategic core framework to simplify my questions and discover what clients truly want. I call it
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Hot Seat: Michael Crossett

From his favorite movies and his first job to the worst purchase he’s ever made, we get the scoop from Michael Crossett, executive vice president at Federal Savings Bank.Ten years from now it will be fascinating to see the advances in technology and medicine, and how those advances impact life! My favorite vacation was on Cape Cod. We used to go to the Cape as kids, and now we’re blessed to still go with my parents and entire family. My first car was a 1974 Chevy Chevelle, my grandfather’s car. I miss the studded tires! If I could meet anyone,
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Spotlight: The 10/2 Changes

In what some are calling a bombshell of a move, HUD announced that it will lower lending limits and raise premiums on reverse mortgage loans. Citing concerns over the health of FHA’s Mutual Mortgage Insurance Fund, the agency made its move without input from industry leaders, taking the reverse community by surprise. Some are saying the new rules—which are expected to slash endorsements by as much as 30 percent—are unnecessarily harsh, limiting the program’s benefits and further stifling an industry that was just beginning to rebound from Financial Assessment. Other measures could have been taken, they say, to protect the
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A Note from the Editor

At The Reverse Review, we’ve worked hard to cover the reverse mortgage market for those who work in the field. Now, after seven years, we’ve decided to shift our focus to educate those who work outside the field, providing them with smart, relevant information about how a reverse mortgage could be used to buy a house, age in place or support a strategic retirement income plan. To do this, we intend to produce special-edition magazines designed for specific audiences, including Realtors, financial advisors, builders, forward mortgage professionals and consumers. Our goal in the coming year will be to create and
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Last Word: New Challenges, Same Rewards

I have been originating HECMs for more than 16 years and have seen many changes. I know that changes are and will be standard procedure for as long as we are in the business. But one thing that will never change is the satisfaction I feel when I close a loan and see my client’s happiness over their newfound security.  Some of my clients do not have a mortgage and have not had one for many years. Others have a mortgage but it is so old they forgot about the rigors of the process. Add the dimension of CFPB oversight
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Feature: Industry Innovators

While the reverse mortgage has been available to consumers for nearly 30 years, it has been slow to catch on. The product has long been plagued by misconception, challenging those who work in the field to combat the myths and educate consumers about the pivotal role this financial product can play in retirement.Since the Great Recession it has become increasingly obvious that a sizable portion of the nation’s aging population could find tremendous benefit in a loan that allows access to home equity. Numerous retirement experts and high-profile finance pros have publicly discussed the advantages of the loan. Still, consumers
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Originating: The Jumbo Option

Jumbo reverse mortgages are designed for homeowners who want to borrow more than the FHA maximum amount or for situations in which the borrower would not qualify under FHA’s HECM rules.Today, there are two types of reverse mortgages available: FHA-insured Home Equity Conversion Mortgages, and the newest iteration of a proprietary reverse mortgage frequently referred to as a jumbo reverse mortgage. Jumbo reverses were prevalent 10 years ago, but they largely disappeared with the demise of the asset-backed securities market in 2008. Most prospective borrowers believe they can borrow about half or more of the value of their home. The
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