Items Tagged with 'HECM'

ARTICLES

  • HUD: Reverse mortgages continue drain on FHA insurance fund

    Subsidy rate holds steady in Q2 as program becomes more burdensome for FHA
    Reverse mortgage volume has been rather abysmal as of late, and second quarter data from HUD doesn't provide many bright spots. In its Q2 report to Congress on the state of the FHA’s flagship insurance Fund, HUD reveals that the reverse mortgage program continues to be a drain.
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  • Experts: There's an urgent need to stabilize the reverse mortgage program

    Say HECMs the only means for low-income seniors to age in place
    A group of experts on aging and retirement gathered at a private meeting hosted by the Urban Institute to discuss the retirement crisis looming over the country's older population, and one thing was abundantly clear: We must find a better way to monetize home equity. For starters, urgent fixes are needed to stabilize and improve the reverse mortgage program.
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  • From HW Magazine

    AAG changes the conversation around the use of home equity

    AAG's new brand message, "Retire Better" focuses on thoughtful and personalized solutions
    Within AAG’s wholesale division, the feedback the company continued to hear from its brokers (some 800+ of them) is that borrowers and family members are still being influenced by old assumptions about HECM products, which have changed significantly since they were introduced by the Reagan administration in 1989. New regulations have improved standards and added safeguards, to further protect older Americans, making home equity mortgages now another option as a strategic financial planning tool for many seniors.
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  • From HW Magazine

    What happened to reverse mortgages?

    Reverse mortgages taken a brutal hit in the last two years
    For anyone actively working in the mortgage industry, it’s no secret that reverse mortgages have taken a brutal hit in the last two years. The U.S. Department of Housing and Urban Development issued major program changes at the end of 2017 that effectively limited the amount of proceeds and the number of people who could qualify for the loan. The result had lenders across the space enduring sizable volume drops and subsequent gashes to their bottom lines.
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  • Government watchdog considering ways to reduce federal costs of reverse mortgage program

    CBO report analyzes impact of 4 proposed solutions – all of them drastic, none of them good
    The Congressional Budget Office released a report Thursday exploring four proposed solutions for lessening the cost and risk of the reverse mortgage program to the federal government. And, the report explores the potential impact of each solution on lenders, borrowers and the budget. Here’s a recap.
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  • Reverse Mortgage Funding expands payment options on proprietary reverse product

    Equity Elite borrowers can now receive proceeds in term payments
    Reverse Mortgage Funding is expanding the payment options on its proprietary reverse mortgage – the Equity Elite – to include term payments. Previously, Equity Elite borrowers could withdraw up to $4 million in their home's equity in a lump sum only at closing. Now, borrowers can select any number of term payments between 24 and 120 months.
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  • ReverseVision launches interactive comparison tool for reverse mortgages

    Allows users to assess the HECM versus HELOC and other loans
    ReverseVision has long been on a mission to elevate reverse mortgage technology to encourage more borrowers and traditional loan officers to consider the product. Now, the three-time HW Tech100 winner is upping its game with the launch of a new loan comparison product that enables users to weigh a HECM against a HELOC or a first- or second-lien mortgage – a tool it hopes will help LOs and consumers better understand reverse mortgages.
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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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  • 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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  • Reverse mortgage data reveals solid spring comeback

    Endorsements grew 12.7% in April
    Last month, the reverse mortgage industry closed just over 2,500 loans, a mark it was consistently hitting when noise from the government shutdown was factored out of the equation. Many agreed this 36% low was likely the industry's new normal, but perhaps they spoke too soon.
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