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Recent Posts Tagged With fha
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Professor: No resemblance between subprime and reverse mortgages
He calls himself “The Mortgage Professor,” stemming from varying roles as a teacher at the University of Pennsylvania (finance) and as a professional in the home loan market for many years. So, when Jack Guttentag’s essay appeared recently in t...
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Reverse Mortgage Origination Volume Grows to $30.2 Billion in 2009, Up 25%
Volume of the Federal Housing Administration’s reverse mortgage program, the Home Equity Conversion Mortgage (HECM) grew to $30.2 billion in FY 2009 according to budget documents released earlier this week. Despite only a slight increase in units e...
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FHA to Increase MIP and Cut Principal Limit for Reverse Mortgage Product
The Obama Administration announced earlier this week that it was requesting a $250 million credit subsidy for the Federal Housing Administration’s reverse mortgage program along with a contingency appropriation to meet all program demand. In additi...
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FHA Raises Bar for Forward and Reverse Mortgage Brokers
A proposal by FHA to eliminate correspondents and raise the bar on mortgage brokers – both forward and reverse – may have a silver lining for several industry players. Possible increases in net worth requirements, strengthened lender approval cr...
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FHA Announces Significant Policy Changes
Federal Housing Authority (FHA) Commissioner David Stevens announced a sweeping series of policy changes this morning to address concerns about FHA’s capital reserves and strengthen the agency against further risk. The policy changes include an in...
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HUD to Release New Financial Interview Tool for HECM Counselors
The US Department of Housing and Urban Development will publish a new reverse mortgage counseling protocol next month according to the National Reverse Mortgage Lenders latest Monday Report. After the protocol is published, HUD said it will tak...
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HECM Program Not Subsidizing the Rest of FHA Says Analysts
New View Advisors published an interesting analysis on the risk profile of the Federal Housing Administration’s reverse mortgage program (HECM). Using an actuarial analysis published by IBM in October 2009 and FHA’s Annual Management Report (AMR...
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NRMLA Proposes New FHA Approval for HECM Mortgagees
The National Reverse Mortgage Lenders Association is proposing that the US Department of Housing and Urban Development create a separate category for smaller mortgagees, whose principal activity is the origination of reverse mortgages. The request co...
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Irrevocable Trusts and the Reverse Mortgage Opportunity
Irrevocable trusts can now be used for reverse mortgages, according to Paul N. Lovegrove Esq., President of Attorney Trust Review. While traditionally reverse mortgages have not been permissible if the home is in an irrevocable trust, Lovegrov...
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HUD Issues New RESPA Guidelines, Removes Origination Fee Limit for Standard Loans
The US Department of Housing and Urban Development published Mortgagee Letter 2009-53 which clarifies how fees and charges for Federal Housing Administration (FHA)-insured loans must be disclosed on the new Good Faith Estimate and HUD-1 Settlement St...
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Fannie Mae Updates Reverse Mortgage Loan Application
Fannie Mae (FNMA) has updated its reverse mortgage loan application (1009) and is requiring that lenders use the new form starting July 1, 2010. The GSE updated the 1009 to comply with Federal Housing Finance Agency (FHFA) and Federal Housing...
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FHA Delays Implementation of Appraiser Independence
The US Department of Housing and Urban Development announced that the enactment of ML 2009-28, Appraiser Independence will be delayed until February 15, 2010. ML 09-28 was originally planned to become effective January 1, 2010 and prohibits mortgage...
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MetLife Releases Reverse Mortgage Guide for Consumers
MetLife Mature Market Institute (MMI) announced the release of The Essentials: Reverse Mortgages to help consumers make informed decisions regarding the use of home equity to help fund one’s retirement. “Reverse mortgages can allow older individ...
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HUD Says Counselors Will Be Able to Issue Backdated HECM Certificates
The US Department of Housing and Urban Development sent a notice to all HUD approved counseling agencies stating that effective December 18, 2009, reverse mortgage counselors will be able to issue backdated HECM certificates to replace those certifi...
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Reverse Mortgage Amendment Passes the House with Overwhelming Support
Financial Services Bill H.R. 4173 passed in the House of Representatives this afternoon by a vote of 223-202. Included with it was the Reverse Mortgage Amendment proposed by Congresswoman Jan Schakowsky (D-IL) and Congresswoman Dina Titus (D-NV...
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HUD Expected to Remove Cap on Origination Fee for FHA Loans
American Banker is reporting that the Department of Housing and Urban Development plans to lift the 1% cap on origination fees for Federal Housing Administration mortgages, sources close to the agency said. HUD argues that competition will prevent f...
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FHA Projections Show Drop in Reverse Mortgage Volume for 2010
The Federal Housing Administration is projecting that reverse mortgage endorsement volume will decline in 2010. It would be the first year over year decline the industry has experienced in at least a decade. According to the report, FHA...
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FHA Suspends Lender for Overcharging Minority Borrowers
The Federal Housing Administration (FHA) suspended Equitable Trust Mortgage Corp. on Monday effective immediately. The action comes after Equitable Trust Mortgage allegedly overcharged 37 borrowers for broker and origination fees beyond those allowe...
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Life After Fannie Mae for Reverse Mortgages
With a national Retirement Risk Index forecasting that half of today’s households will not have enough retirement income to maintain their standards of living, the pressure to attract investor interest in reverse mortgages increases. Fannie Mae lo...
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Financial Freedom Raises Correspondent Net Worth Requirements, More to Follow?
Financial Freedom sent out a notice earlier this week announcing it was increasing net worth requirements for wholesale correspondents. According to the notice: Beginning 2010 you will be required to maintain a minimum net worth of $100,000 (with 5...
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HUD Publishes FAQ Regarding Proposed Rules for FHA Net Worth Requirements
Only a few days after publishing proposed rules to help reduce risks to the Federal Housing Administration’s single family insurance fund, HUD has published a Frequently Asked Question document addressing the possible changes. The proposed rule wo...
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FHA Management Report Shows $414 Million Positive Value for HECM Program
Since the inception of the Federal Housing Administration’s reverse mortgage program, FHA has insured 571,709 HECM loans with a maximum claim amount of $123 billion. According to FHA’s Annual Management Report, 452,196 of those loans with a maxi...
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Reverse Mortgage for Co-Ops Coming Soon?
Homeowners who are looking to get a reverse mortgage on their co-op will be able to soon according to an article from the New York Times. The question was posted in its Real Estate Q&A over the weekend. Eric D. Sherman, a Manhattan ...
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HUD Will Ask Congress to Raise Cap on Insurance Premiums for FHA Loans
The Wall Street Journal is reporting that the Federal Housing Administration plans to announce measures it is considering to protect its dwindling reserves. According to the WSJ: Shaun Donovan, secretary of the U.S. Department of Housing and Urban De...
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HUD OIG Reiterates Faith in Reverse Mortgage Program
During the “Keeping HECMs Honest – The Inspector General’s Point of View,” session at the National Reverse Mortgage Lenders Association Annual Conference in San Diego last week, Assistant Special Agent in Charge, Office of the Inspector Gener...
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HUD Notice Asks Serious Questions About Use of Reverse Mortgage Proceeds
The US Department of Housing and Urban Development will publish an advance notice of rule making concerning reverse mortgages and will “ask some serious questions that a lot of people may find disconcerting,” said Meg Burns, Director, Single-Fami...
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HUD Asks Board to Exercise Restraint in Enforcing New RESPA Requirements
The US Department of Housing and Urban Development (HUD) announced that the first four months of 2010, the staff of the Mortgagee Review Board (MRB) will exercise restraint in enforcing new regulatory requirements under the Real Estate Settlement Pr...
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HUD Implements HECM Counseling Roster and Testing Standards
In an effort to strengthen reverse mortgage counseling, the US Department of Housing and Urban Development published Mortgagee Letter 2009-47 to implement the HECM Counselor Roster and testing standards used to qualify counselors. According to ML 09...
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FHA Issues New Condo Guidelines for Reverse Mortgage Lenders
The US Department of Housing and Urban Development issued new condominium lending guidelines that go into effect Dec. 7, 2009. However, the agency is making several temporary exceptions to the new rules due to the "volatility" in the...
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Fannie Mae and FHA Boost Net Worth Requirement for Reverse Mortgage Lenders
Independent reverse mortgage bankers are facing increased net worth requirements which could change the way they currently operate. Fannie Mae announced earlier this week that it was increasing the minimum required net worth required for approved se...
