Items Tagged with 'financial assessment'


  • FHA takes steps to streamline reverse mortgage underwriting

    Releases specific guidance on the contracting of third parties to verify financial info
    The Federal Housing Administration has taken steps to streamline the cumbersome financial assessment process for lenders, recently releasing updated guidance that specifically approves the use of third-party verification – or TPV – to collect a borrower's financial information.
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  • HUD: Reverse mortgage second appraisal rule affecting about 20% of HECMs

    Panel gives update on impact of recent HECM program changes
    The latest mandate requiring a second appraisal on select reverse mortgage loans has affected about 20% of HECM appraisals so far, according to representatives at the Department of Housing and Urban Development. Speaking on a panel at NRMLA's conference on Monday, HUD staff members presented data on the impact of the new appraisal rule and other recent changes made to the reverse mortgage program.
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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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  • Originating: Financial Assessment: Then and Now

    “It is impossible to know where one is going without first exploring where one has gone.” It has been more than a year since the announcement that shook the industry, and reverse mortgage professionals everywhere eagerly await the opportunity to learn the details of the dramatic changes we are to endure for years to come. Never again will the program be as simple or as easy to explain as it has traditionally been. Nor will it ever be as easy to qualify for as it was in its heyday. This we know. From the elimination of the fixed-rate Standard option
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  • Underwriting: Financial Assessment, Round One

    Recently, lenders and investors have suspended or changed their published financial assessment requirements. Based on NRMLA guidance put forth last fall, the best processes offered were aimed at addressing an increase in borrower tax and insurance defaults.This reassessment has given rise to a heightened awareness of the effects of a borrower’s prior delinquent T&I payment history, requiring additional focus on underwriting process to determine the ability and willingness of the borrower to meet these expense obligations in the future.   The likelihood and predictability of T&I default has been well documented and reviewed by lenders, servicers and HUD. This first
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  • 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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  • NRMLA Presents Financial Assessment Recommendations

    Members of the NRMLA executive staff met with Karin Hill, Director of the Office of Single Family Program Development and other staff members at the Department of Housing and Urban Development (HUD) to discuss the financial assessment of HECM borrowers and other issues related to the program. In conjunction with discussing the potential financial assessment of HECM borrower's ability to maintain their tax and insurance payment obligations, NRMLA Executive Vice President Steve Irwin submitted a letter to Director Hill that detailed the organization's recommendation on the structure of the assessment. NRMLA expressed ongoing support for the concept of a rule
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