Reverse Mortgages

Overall reverse mortgage industry volume fell 7.4% in October 2009, coming in at 8,772 units, bringing YTD volume to 95,902 according to data from Reverse Market Insight .  Below is a list of the top HECM lenders through October 2009 and be sure to take a look at the commentary and link below which goes into more detail. The Top 10 lenders accounted for 3,845 endorsements in the month, or just under 44% of the volume. The number of active lenders in the industry has grown 8.7% vs 2008 levels.  We have three HUD regions where the endorsement growth actually outpaced the change in ... Read Full Story

While a traditional mortgage creates a large debt that is paid down during your stay in a home, a reverse mortgage does not need to be paid back until the borrower pass away, moves out, or sells. Thus, a reverse mortgage can be a great way to obtain cash from your home if you have a substantial amount of equity built up. In order to qualify for a reverse mortgage you must be at least 62 years of age as well as live in the home in which you are mortgaging. A reverse mortgage can be paid in several ways: One option is a ... Read Full Story

The US Department of Housing and Urban Development announced its Mortgagee Review Board (MRB) is imposing civil money penalties against two FHA approved lenders in  Wisconsin and Connecticut for a variety of violations of FHA lending and marketing standards. In addition, the MRB reached tentative settlements with four other lenders and issued two Letters of Reprimand to lenders that HUD alleged violated FHA requirements. One of the lenders it reached a tentative settlement with is Cerritos, California based Sun West Mortgage Company .  HUD alleges that the reverse mortgage lender originated ten HECM loans in Massachusetts before receiving the necessary license and approval to ... Read Full Story

Sun West Mortgage Company sent out a notice to its reverse mortgage brokers that HECM loans with FHA case numbers dated on or after 10/1/09 will no longer receive pricing adjustments for properties located in a range of states which you can see below: Type Old Pricing New Pricing Properties located in GA, FL, AL, MS and AZ   0.625% Cost No Cost Properties located in NH, NY, NJ, VT, CT and ME  0.375% Cost No Cost Approved appraisals that do not meet SWMC guidelines 0.625% Cost No Cost The most interesting part of the announcement was hidden at the bottom of the email regarding ... Read Full Story

Continued legislative activism around reverse mortgages at the state level featured a new law passed last month in California that requires reverse mortgage lenders to provide “additional, clear information to senior consumers interested in reverse mortgage products.” Among its specific provisions, the new law mandates lenders to provide a prospective borrower with a list of at least 10 HUD-approved reverse mortgage counseling agencies and a written checklist of issues to discuss with that advisor. According to Christopher Oswald, director of state government affairs, at the Mortgage Bankers Association, “whole sections” of the new California law were “verbatim” representations of a model reverse mortgage bill ... Read Full Story