Items Tagged with 'HECMs'

ARTICLES

  • FHA loosens condo eligibility requirements for reverse mortgages

    Announces long-awaited changes that will make it easier for condo owners to obtain a HECM
    The Federal Housing Administration has finally issued a long-awaited update to its condominium rules, announcing Wednesday that it will allow individual unit approval and is taking other steps that will eliminate barriers for condo owners who want to take out a reverse mortgage. In all, the revised rule will drastically enhance the number of condo owners who have access to HECM financing.
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  • FHA's reverse mortgage changes have slashed the default rate

    Policy of assessing borrower's credit risk appears to be doing the trick
    It’s been four years since the Federal Housing Administration instituted a policy requiring all prospective reverse mortgage borrowers undergo a financial assessment to determine their suitability for the loan, and so far, it appears to be working. According to the latest analysis from New View Advisors, Financial Assessment has slashed tax and insurance default by more than three-quarters and serious defaults by more than two-thirds.
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  • USA Today blasts reverse mortgages, industry fights back

    Trade association says reporters jumbled the facts, skimmed over rule changes
    Last week, USA Today released a scathing investigative story that took aim at reverse mortgages, blasting lenders for targeting impoverished, elderly homeowners and leading a substantial number of them into foreclosure. Then, it followed it up with an even more damning op-ed by its Editorial Board. The National Reverse Mortgage Lenders Association fought back with its own op-ed on the matter, calling out the publication for failing to tell the full story.
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  • Alabama-based Hometown Lenders launches HECM division

    Adopts ReverseVision technology to support new channel
    Alabama-based mortgage lender Hometown Lenders announced Thursday that it’s launching a reverse mortgage division, employing ReverseVision’s HECM technology to support its effort. This makes Hometown the second lender in the last month to launch a HECM division using ReverseVision technology, apparently finding merit in the "generational lending" strategy RV promotes.
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  • Urban Institute to FHA: Fix your reverse mortgage servicing problems

    Stop transferring servicing rights, it’s costing millions
    Policymakers have long struggled with how to fix the FHA's reverse mortgage program to prevent it from draining the agency's mortgage insurance fund. But researchers are the Urban Institute have an idea: Fix the program's servicing problems, which they call "one of the biggest drivers of losses in the HECM program." Here's what they suggest.
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  • Blue Ridge Bank launches reverse mortgage division

    Announces partnership with ReverseVision
    North Carolina-based Blue Ridge Bank announced this week that it has partnered with HECM technology provider ReverseVision to launch a reverse mortgage division. The bank, which said it has closed $25 billion in forward loans, is implementing ReverseVision’s RV Exchange loan origination system to support its launch.
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  • Retirement Funding Solutions partners with 55places.com to help older homebuyers get a mortgage

    Reverse mortgage lender and senior living website aim to help older homebuyers
    Retirement Funding Solutions, a top 10 reverse mortgage lender, has announced a partnership with 55places.com, an online resource for active adult communities. Together, the two entities are forming 55places Mortgage, which aims to guide users though the home financing process, presenting both traditional and reverse mortgage options.
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  • Are more borrowers really taking out non-agency reverse mortgages? Originators weigh in

    Lenders say interest has spiked, but data is lacking. LOs in the field chime in
    In the past year, the reverse mortgage industry has seen a number of non-agency reverse mortgages come to market. But while most lenders say interest in their jumbo reverse products has been strong, data is sorely lacking. To shed some light on what's really happening, we reached out to a handful of active reverse originators to learn about what they're seeing in the field. Here's what they had to say.
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  • How many borrowers are taking out jumbo reverse mortgages? No one really knows

    The industry avidly tracks HUD-endorsed HECMs, but it's sorely lacking cross-lender data on non-agency reverses
    For the last several months, data on reverse mortgage volume has illustrated a steady descent as the industry has struggled to regain its footing in the wake of program changes. But does this tell the whole story? Five lenders now originate proprietary reverse mortgage products. But the problem is they all decline to offer specifics on volume, so there’s no way to tell just how many of these non-agency loans the industry is collectively closing.
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  • WTH is a reverse mortgage?

    So many consumers think they're a scam. Here's the truth.
    Reverse mortgages may be the most misunderstood – and the most maligned – financial product out there. But for those who are certain they are simply a scam, shrug off your perceptions for a moment and consider this: Would the U.S. government really endorse a scam for the last 30 years? Not likely. While unforeseen problems with the loan have largely been resolved, the sour scent of foul play lingers. To clear the air, here is a list of facts curated specifically to address the questions of what, exactly, is a reverse mortgage.
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