Items Tagged with 'Federal Housing Administration'

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  • FHA Commissioner Brian Montgomery: More change ahead for reverse mortgages

    “The HECM program has profound issues”
    Federal Housing Administration Commissioner Brian Montgomery said Tuesday at the National Reverse Mortgage Lenders Association’s annual meeting in San Diego that the agency is working to address the volatility within the reverse mortgage program, hinting that the industry can expect more change ahead, as “efforts in past years to address these problems have generally only delivered short-term fixes.”
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  • FHA takes steps to relieve balance sheet stress for reverse mortgage issuers

    Relaxes documentation guidelines to streamline assignments to HUD
    The Federal Housing Administration issued new guidelines Monday to ease documentation requirements for reverse mortgage issuers. With revised rules in place, the FHA aims to address the rigorous reporting requirements that were gumming up the works, adding serious stress to the balance sheets for reverse mortgage issuers.
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  • FHA publishes FAQ on second appraisal mandate for reverse mortgage loans

    Clarifies specifics for HECM lenders
    It’s only been in play for a few weeks, but the HECM industry continues to speculate just how impactful FHA’s new second appraisal mandate has been. In the meantime, the agency sought to clear up any confusion among lenders, recently publishing a list of FAQs on the new guideline. The biggest takeaway? Its process is proprietary, so don’t expect any clues about its methods.
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  • Lennar subsidiary Eagle Home Mortgage fined $13.2 million for FHA lending violations

    The False Claims Act ain’t dead yet
    It appears the False Claims Act ain’t dead yet. The Department of Justice announced Friday that it reached a $13.2 million settlement with Universal American Mortgage Company, the mortgage subsidiary of Lennar that does business as Eagle Home Mortgage, to resolve allegations that the lender violated the False Claims Act by falsely certifying that it complied with FHA lending standards.
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  • FHA Commissioner Brian Montgomery hints at issues in FHA appraisals

    Already seen problems in HECM, but there might be problems in forward too
    The FHA has already identified issues in appraisals on reverse mortgages and is taking steps to address the problem. But now, FHA Commissioner Brian Montgomery told the crowd at the Mortgage Bankers Association 2018 Annual Conference in Washington, D.C., on Monday that the FHA is seeing some things in forward appraisals that give him "pause."
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  • How will FHA’s new HECM appraisal rules affect reverse mortgage lending?

    AMCs weigh in on the mandate requiring second appraisals on select loans
    The latest change to the reverse mortgage program was just announced, and it requires a second appraisal on select HECM loans. Now, the industry is abuzz with speculation as to just how impactful the new requirement will be. Will turn-times slow down? Will the loan be more expensive for most borrowers? We talked to appraisal management companies to find out.
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  • MBA: Weekly mortgage applications remain steady

    15-year fixed-rate mortgages increase to highest level since April 2010
    Mortgage applications didn’t budge for the week ending on September 28, 2018, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Notably, the average contract interest rate for 5/1 ARMs reached another record high this week, increasing to its highest level in survey history.
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  • It’s been one year since HUD shook up the reverse mortgage industry

    With 10/2 program changes firmly in the rearview, how did the industry fare, and what’s ahead for players in the space?
    Tuesday marked exactly one year since HUD implemented HECM program changes in a move that took lenders by surprise and drastically impacted the reverse mortgage business. It’s been a rocky year as originators attempted to adjust to the new normal, and it seems no one got out unscathed. Will product innovation help the industry find its footing, or will another round of program changes knock it off its feet?
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  • FHA: We saw appraisal issues on 37% of HECM loans

    Agency will use confidential collateral risk assessment to look for patterns among lenders
    The FHA's investigation into possible appraisal inflations on reverse mortgage loans revealed an issue the agency decided it must address. The FHA said Monday that out of the 134,000 appraisals it reviewed, approximately 50,000 were inaccurate by at least 3%. FHA Commissioner Brian Montgomery said it was hard to know how many appraisals will be flagged for a second review moving forward, and that the agency intends to monitor the efficacy of the new guidelines throughout the year.
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