Disqus - Latest Comments for ReverseGuy

Re: HUD Revises Reverse Mortgage Servicing Policies for Due Loans

ReverseGuy — Tue, 28 Apr 2015 08:19:06 -0000

Melinda...I would re-read the mortgagee letters in more detail. HUD is accelerating the timelines to move loans into the foreclosure process more quickly than in the past (and penalizing servicers further if they fail to meet any of the timelines - by even one day). HUD's approach to "work on the servicing issues" seems to just be to simply require the servicers to push loans into foreclosure as quickly as possible rather than allow more time for servicers to work closely with borrowers or their heirs.

Re: HUD Details 60-Day Foreclosure Extension For Reverse Mortgage Non-Borrowing Spouses

ReverseGuy — Wed, 23 Apr 2014 07:37:52 -0000

Why only limit this to situations where a borrower has passed away (beyond the question of what will providing only 60 days really do for a non-borrowing spouse)? Does a non-borrowing spouse not deserve the same benefit in the case where the borrower had to leave the home involuntarily (to move into an assisted living facility, for example)? What additional risk does an occupancy default present over a death default in HUD's eyes?

Re: HUD Moves in on Reverse Mortgage Non-Borrowing Spouse Solution

ReverseGuy — Tue, 22 Apr 2014 08:21:59 -0000

What exactly is 60 days supposed to do?
If there is a non-borrowing spouse living in the home and a foreclosure process is underway (because the borrowing spouse passed away), are you not just delaying the inevitable by suspending the foreclosure for 60 days?
The non-borrowing spouse would have received some time to try to pay the loan off (so that they could stay in the home) before the foreclosure was started, so is 60 days going to make any difference?
Seems like a half-hearted attempt by HUD to address a critically important issue.

Re: NY Times: Reverse Mortgage Heirs Face Pitfalls

ReverseGuy — Mon, 31 Mar 2014 07:57:23 -0000

Where is the proof? Have they reviewed any of letters sent by the servicer to confirm that option was not offered? It seems as though this article is complete hearsay...I would have expected more from the NYT.

Re: Property Tax Surprise Risk for Reverse Mortgages?

ReverseGuy — Thu, 12 Jul 2012 10:48:44 -0000

Cynic,

I think you hit the nail on the head. Loans originated today (or yesterday, or the day before) were all done without the benefit of some sort of financial assessment to validate that the borrower has sufficient financial resources to meet future tax and insurance (and HOA) obligations.

When will we finally see HUD complete any sort of real action on this problem? Until then, the bleeding continues...

Re: Moneyhouse Hires Sandy Tennekoon to Run Wholesale, U.S. Expansion

ReverseGuy — Wed, 09 May 2012 09:35:38 -0000

Congratulations, Sandy. Moneyhouse is very lucky to have you...

Re: Could a New Product Be a Reverse Mortgage Game Changer?

ReverseGuy — Fri, 13 Apr 2012 11:50:46 -0000

I wonder what kind of impact this change would have on the systems of the servicers? I can only imagine that HUD's system would be a challenge modifying it to handle something like this. Very interesting however...

Re: HUD Announces New Reverse Mortgage Servicing Contract

ReverseGuy — Wed, 11 Apr 2012 08:28:47 -0000

Cynic,

My comment was somewhat tongue in cheek. I absolutely agree that it was more than likely a cost issue.

I have to wonder if anyone is contemplating what the impact is to having the HECM borrower (whose loan is assigned to HUD) serviced by the lowest cost bidder?

Re: HUD Announces New Reverse Mortgage Servicing Contract

ReverseGuy — Mon, 09 Apr 2012 16:45:26 -0000

I wonder why C&L didn't win the contract, as they had already had gained experience with this product over the past several years?

Re: Is A Reverse Mortgage TV Celeb Spokesman Necessary? Generation Thinks Not

ReverseGuy — Mon, 09 Apr 2012 16:43:49 -0000

I think it's very well done - and going in a different direction than everyone else is not always a bad idea.

Re: Court Deems Reverse Mortgage Payments Can Be Garnished In Lawsuit

ReverseGuy — Thu, 15 Mar 2012 08:24:42 -0000

Just like the old saying "robbing Peter to pay Paul". It's appears as though the court is viewing the reverse mortgage proceeds as income and garnishing it - like from an employer. Not sure I fully understand the thinking behind this one.

I am no expert in these matters, but I wonder if there is any case law where a court required a younger borrower to go out and borrow money on their HELOC, so that it could be garnished to pay off a judgment. Maybe there is a precedent there, however I just can't believe that would be the case.

Re: Urban Seeks Feedback on Proposed Reverse Mortgage Financial Assessment Guidelines

ReverseGuy — Mon, 30 Jan 2012 08:01:21 -0000

I Googled escrow accounts with HECMs and ran across this reference in a HUD handbook: 4330, 13-12 (a-1): 1.The mortgagee will not maintain an escrow account.

Looks like a change to the HECM program would be needed to allow for this type of option.

Re: Reverse Mortgage Leads Provider Sees Opportunity in Financial Assessment

ReverseGuy — Thu, 22 Dec 2011 08:07:41 -0000

Critic,

In my opinion, when the first waves of negative press begin to hit next year due to tax and insurance default foreclosures, HUD will be forced to take a second look internally at the program. It also will give ammo to those in the government who already are fighting to eliminate or significantly scale back FHA as a whole (because they feel that the government should not be involved in the housing business).

Re: Cherry Creek Finds Reverse Mortgage Boom in Small Town—But How?

ReverseGuy — Fri, 16 Dec 2011 13:08:49 -0000

Roxie,

Many lenders have established close relationships with various groups for loan origination purposes. It is simply marketing 101.

I don't work for Cherry Creek, but I congratulate them on their continued growth. It's not easy in today's market.

Re: Bank of America Sells $18 Billion of Reverse Mortgage Servicing to Nationstar

ReverseGuy — Wed, 14 Dec 2011 08:12:22 -0000

Welcome to the reverse mortgage industry, Nationstar!

Re: Moody’s Downgrades $5 Billion in Reverse Mortgage Bonds

ReverseGuy — Tue, 29 Nov 2011 08:13:52 -0000

Critic,

I had the same questions...as the issuer bears all risk for losses associated with the sale of a foreclosed property. I'm wondering if these are possibly old private reverse mortgage deals (not HMBS)?

Re: MetLife Makes History, Implements Financial Assessment for Reverse Mortgages

ReverseGuy — Mon, 07 Nov 2011 07:56:50 -0000

Quick comment: the message above was not written by me, just by someone who took my "pen name". However, I would like to respond to Reverse_Guy's comment:

How is this "insane"? That some people may not qualify (just like a forward loan) if they can't prove that they can pay their ongoing homeowner obligations, like taxes and insurance?

What's worse in your eyes, that someone is denied a reverse mortgage (because they have no remaining funds at the end of the month to pay taxes/insurance), or that the same person is given a reverse mortgage - only to be foreclosed and evicted from their home 18 months later for failure to pay their taxes?

Re: MetLife Looks to Sell Forward Mortgage Business, Reverse Remains

ReverseGuy — Thu, 13 Oct 2011 07:55:52 -0000

One can only speculate that the increased regulation and oversight that continues to be pushed down their throats by regulators (most of it rushed and poorly thought out) played a very big part in their decision to put the bank up for sale, as well as this decision.

I wonder if anyone will take the angle when reporting on this that one of the top 10 forward originators in the country is exiting this business because regulations have pushed it to the point where it is no longer "worth it" to continue operations?

Keep in mind, we're not talking about some fly-by-night subprime operation pushing no doc/stated income loans. MetLife was lucky enough to avoid all of that mess by staying out of that area of the business. It's a sad state of affairs (and possibly the rule of unintended consequences) that you drive a good company out of a business due to over-reaction by regulators.

Re: FHA Official Statement: HECM Financial Assessment Is Allowed

ReverseGuy — Fri, 07 Oct 2011 10:48:54 -0000

John,

I have to disagree with your overly simplistic response to a complex issue. By most estimates seen in various publications, the tax and insurance default problem is limited to approximately 5% of all outstanding reverse mortgages. Therefore, 95% of the borrowers are handling their tax/insurance payments just fine.

If the 5% were not able to afford to pay their taxes or insurance bills, what makes you think that they will all of a sudden be able to pay them if they had a monthly escrow payment? The old saying goes "you can't get blood out of a turnip..."

Escrow payments would create a burden on the 95% of the compliant borrowers - not the mention the collection work and expected rising costs involved with servicing the loans. As much as it would be nice to think, not every one would pay their monthly escrow payment turning the lenders into some type of "collection agencies".

Sorry...I just don't agree.

Re: 101-Year-Old Former HECM Borrower Allowed To Return Home

ReverseGuy — Fri, 16 Sep 2011 12:26:43 -0000

Michael,

I don't think that this is such a unique case. I would be more than shocked if there weren't other very similar situations that servicers are working on now where there are no other family members to help with paying the borrower's taxes and insurance. It's the unfortunate reality of these borrowers who can no longer afford to pay for their ongoing obligations under the terms of their mortgage.

Re: HUD: Financial Assessment Is Fair Game, Official Statement Coming Soon

ReverseGuy — Tue, 06 Sep 2011 12:48:26 -0000

John - to your point on monthly escrow payments...HUD guidelines currently do not allow escrows - only tax and insurance set asides. That may sound minor, but it would require HUD to change their regulations in order for this to be allowed. That can certainly be accomplished (with time of course), but how does a monthly payment solve the problem for the borrower who can't afford to pay their taxes and insurance to begin with? The way the process currently works today, a borrower could not be denied a reverse mortgage even if they can't meet those ongoing/regular obligations outright like tax or insurance payments.

Re: TRR Interview: Michael Kent, RMS | Reverse Review -leading source for mortgage news,articles,advice and information.

ReverseGuy — Tue, 06 Sep 2011 12:35:13 -0000

Re: HECM Financial Assessment Now In the Hands of Special Task Force

ReverseGuy — Wed, 31 Aug 2011 07:53:27 -0000

Atare,

How can you capture a potential life-stage issue that could lead a senior to default on taxes and insurance? Can you provide more information, as you state that this information is available?

This is, at a minimum, a very big step in the right direction. However, I don't see how you could reliably forecast for a life-changing event that could result in diminished income to pay taxes or insurance (such as medical issues, downturn in the stock market, loss of a spouse, etc.)

The folks on this committee have an extremely difficult task ahead of them and they should know that, in my opinion, a majority of the industry is behind them.

Re: Oregon State Legislature Bars Reverse Mortgages from Tax Deferral Program

ReverseGuy — Tue, 19 Jul 2011 07:40:31 -0000

I believe that California also did away with their tax deferral program last year.

From what I remember hearing, I believe that Massachusetts is the only state that still allows the borrower to enter in to a tax deferral and not cause issues with their reverse mortgage...

Re: Wells Fargo’s Exit From Reverse Mortgages Done Right? Not Quite

ReverseGuy — Thu, 14 Jul 2011 08:34:28 -0000

Great article, John. I don't think anyone doubts the dedication that the Wells Fargo staff had to our industry. They truly were instrumental in the growth of the program over the years.

It simply was sad to see their public relations bungle this when they made the decision to exit the business.