Items Tagged with 'Tax and Insurance default'

ARTICLES

  • Financial Assessment: You First

    As the reverse mortgage industry anxiously awaits either HUD or one of the lenders to fire the first salvo in the introduction of a financial assessment tool, the FHA revealed their intentions in an official statement:  we want it, you first. In the statement from the Desk of Acting FHA Commissioner Carol Galante, the FHA makes their case that given the economic climate and lack of changes to the HECM program over its 20 plus year history, FHA has been evaluating the program and "revisiting its regulations to propose and ultimately adopt changes that are necessary to make the
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  • Navigating a Changing Reverse Mortgage Market

    In the wake changes in the marketplace and concerns about the rising number of nonperforming loans, the reverse mortgage industry is navigating through challenging waters, according to an article in Morningstar. Retirement and aging columnist, Mark Miller's article, "How to Navigate the Changing Reverse Mortgage Market,"  presents an overview of the HECM reverse mortgage product and discusses some of challenges faced by the industry, including the tax and insurance defaults, exits by three large lenders and the transition to fixed rate products.  Generally, Miller goes into more detail than the typical HECM review article. In describing the general product
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  • Celink Rolls out Single Point of Contact Technology

    Celink, the nation’s largest reverse mortgage subservicer, is pleased to announce that it has implemented a single point of contact module for its clients’ borrowers who are in default status (tax and/or insurance, due and payable, foreclosure). When a borrower fails to pay their taxes and/or insurance, they are placed into default status, and Celink’s servicing platform (ReverServ™) auto-assigns the borrower to a Celink associate. This associate works exclusively and diligently with the borrower until they remedy the default. They will remain the borrower’s single point of contact (SPOC) through the remediation or foreclosure process. This program eliminates the
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  • Addressing Reverse Mortgage Red Flags

    The tax and insurance default issue with reverse mortgage servicing continues to be portrayed as a catastrophic issue threatening the Home Equity Conversion Mortgage (HECM) program, highlighting the need for public response from the industry and new guidance from HUD regarding how the issue is being addressed.   An "The Best Life" blog in U.S. News & World Report, Philip Moeller suggests that the HECM program is plagued with a "host of serious problems."  He points to reverse mortgages being controversial due to their high loan and insurance fees and because some borrowers have not maintained their responsibility to
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  • Consumer Reports Continues RM Warning

    In their March issue, Consumer Reports Magazine has continued their biased, unsubstantiated attack on reverse mortgages with their on-going refrain that reverse mortgages should only be a product of last resort.  This time, taking aim at One Reverse Mortgage's ads featuring Henry Winkler. The article, "Reverse Mortgages: Know the Traps," states that reverse mortgages carry huge costs and can lead to foreclosure.  However, at the same time, they acknowledge that recent program changes have led to increased competition among lenders, new loan options and lower up-front costs for borrowers.  Without any detail or substantiation, it then reiterates that "other
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