Items Tagged with 'HECM SERVICING'

ARTICLES

  • 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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  • Celink names Robert Sivori new chairman, CEO

    Longtime reverse mortgage exec to head HECM subservicer
    Celink, the largest subservicer of reverse mortgages in the U.S., announced that Robert Sivori will take over as its new chairman and CEO. The HECM industry veteran is credited with building one of the strongest and most robust reverse servicing platforms.
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  • D.C. housing agency launches program to help delinquent reverse mortgage borrowers

    Provides financial assistance to seniors facing foreclosure
    A D.C.-based housing agency recently launched a program to help reverse mortgage borrowers facing foreclosure because of their failure to pay property taxes and homeowners insurance. While only available to help borrowers in the district, the program could be replicated in other parts of the country with a high percentage of HECM loans in default.
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  • Ditech says its reverse mortgage business is unprofitable

    With continued losses likely, the struggling nonbank says it's weighing its options
    Aware that sweeping regulatory changes would likely send the reverse mortgage business into a tailspin, Ditech – then named Walter Investment Management – shut down the HECM origination channel of its subsidiary, Reverse Mortgage Solutions, in 2017. But the company has continued to service reverse mortgages, and it’s not going well. According to a report filed Tuesday with SEC, Ditech's reverse mortgage business is operating at a sizable loss – and this trend isn’t likely to turn around anytime soon.
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  • CFPB calls out reverse mortgage servicing problems

    Warns servicers to review documentation sent to heirs to avoid risk of deception
    As part of its ongoing effort to keep tabs on loan servicers, the Consumer Financial Protection Bureau released a report this week that highlighted problems with the servicing of reverse mortgages. According to the bureau, a recent examination brought to light the fact that some reverse mortgage servicers have issued misleading statements to the heirs of deceased reverse mortgage borrowers.
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  • Q&A: Celink's Jason McNamara on the challenges facing reverse mortgage servicers

    Why HECM servicing has grown difficult, and what needs to be done about it
    Reverse mortgage servicing differs vastly from traditional mortgage servicing, and thanks to program changes issued over the last two years, it's gotten even more challenging. We spoke with Celink's Jason McNamara, CEO of the nation's largest reverse mortgage subservicer, about the shifting landscape of HECM servicing and the changes he says are necessary to curb losses to the MMI Fund.
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  • Reverse mortgage servicer Celink settles lawsuit for $4.25 million

    Suit alleges Celink wrongfully collected interest on FHA insurance
    Celink settled a federal lawsuit regarding allegations that it violated the False Claims Act in relation to its servicing of reverse mortgage loans. The Michigan-based servicer agreed to shell out $4.25 million to resolve the claim that it wrongfully collected interest on FHA insurance for five years.
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