Disqus - Latest Comments for floridareversemortgageguy

Re: Reverse Mortgage Rates Begin to Rise, Lower Proceeds for Borrowers

Kevin McNichol — Fri, 11 Feb 2011 00:24:12 -0000

Rates rising, equity in homes falling, millions of shadow foreclosures coming to market, millions more homes to be foreclosed on this year and next, and on and on. The government's (FNMA, FREDDIE, and HUD) role in the mortgage industry WILL be cut back dramatically. These are just a few of the things that will have a dramatic negative impact on the RM business and just a few of things that this site and readers are ignoring at their own peril.

Re: Reverse Mortgage Alternative Product From EquityKey Returns

Kevin McNichol — Thu, 06 May 2010 19:03:16 -0000

Be careful what you wish for. Proprietary reverse products may lead to the collapse of the HECM market more quickly than this product.

Re: Without $250 Million HECM Subsidy, Big Principal Limit Reduction Needed says FHA

Kevin McNichol — Sat, 13 Mar 2010 10:02:29 -0000

So if the 10% reduction in PLfs hit endorsements for a 10% or more decline, I guess we are in for an additional hit of 20% or more, meaning less than 80,000 endorsements annually. Any thoughts?

Re: Without $250 Million HECM Subsidy, Big Principal Limit Reduction Needed says FHA

Kevin McNichol — Fri, 12 Mar 2010 11:07:53 -0000

It sounds like the increase in MIP and cut of 1 to 5 percent in PLF are a done deal? Is that right?

Re: Without $250 Million HECM Subsidy, Big Principal Limit Reduction Needed says FHA

Kevin McNichol — Thu, 11 Mar 2010 21:31:12 -0000

How do we go from a 1 to 5 percent cut in PLFs in paragraph 6 to a 21% cut in paragraph 7?

Re: Former GNMA CEO: Where is AARP?

Kevin McNichol — Thu, 11 Mar 2010 17:33:54 -0000

What AARP should do is get out of the Medicare Supplement Business, not get into the RM business. They are supposed to be an advocacy group, a lobbying group for seniors. If they got into RMs that would pose a huge conflict of interest. How could they go from policing the use of their name in marketing material at one extreme to becoming a player/lender at the other? I'd be surprised if regulators would welcome that.

Re: Poll: Are Reverse Mortgages Too Cheap?

Kevin McNichol — Mon, 22 Feb 2010 17:01:05 -0000

There are other ways to lower fees. How many states eliminate intangible taxes and doc stamps on RM's? If we did that in Florida total upfront fees would be lower by about 25%.

Re: Illinois AG Files Lawsuits Against Two Reverse Mortgage Lenders

Kevin McNichol — Thu, 11 Feb 2010 07:47:15 -0000

I don't know the % but it's bad enough that the ability to be able to pay taxes and insurance AFTER completing a reverse will be part of the suitability "test" and may lead to required escrow accounts.

Re: Illinois AG Files Lawsuits Against Two Reverse Mortgage Lenders

Kevin McNichol — Wed, 10 Feb 2010 16:45:06 -0000

The only reason many seniors haven't been foreclosed on due to non payment of insurance or taxes is that the lenders are picking up the tab! Before this happens homeowners receive a foreclosure notice. Loan officers and lenders have been sued for not informing homeowners of this part of the Truth in Lending. Where have you all been the past year or two?

Re: Illinois AG Files Lawsuits Against Two Reverse Mortgage Lenders

Kevin McNichol — Wed, 10 Feb 2010 12:55:25 -0000

comeondude..you can't say that the homeowner has no risk of losing the home UNLESS you also say that they must pay homeowners insurance and property taxes paid, and maintain the home or risk losing it. If you don't, that's misleading marketing and not allowed.

Re: Illinois AG Files Lawsuits Against Two Reverse Mortgage Lenders

Kevin McNichol — Wed, 10 Feb 2010 08:47:29 -0000

Once again Mr. Veale you are 100% correct. The problem is that the fringe may be getting bigger lately and will catch the eye of regulators etc. more and more.

Re: Illinois AG Files Lawsuits Against Two Reverse Mortgage Lenders

Kevin McNichol — Tue, 09 Feb 2010 16:10:41 -0000

Admin..the AG's statement implies that they did and if they did that's a no no. That's all I'm saying.

Re: Illinois AG Files Lawsuits Against Two Reverse Mortgage Lenders

Kevin McNichol — Tue, 09 Feb 2010 15:58:06 -0000

Yes, borrowers can be foreclosed on if they fail to meet the conditions of the loan but stating that reverse mortgage borrowers lose ownership of the property is incorrect. RMD contacted Madigan’s office looking for clarification but has yet to receive a response.

You can't say they can't lose the home without also stating the conditions that need to be met for that to be so.

Re: FHA to Increase MIP and Cut Principal Limit for Reverse Mortgage Product

Kevin McNichol — Tue, 02 Feb 2010 23:49:55 -0000

Let's hope they at least give us some months lead time, like 12 or 24.

Re: White House Requests $250 Million Credit Subsidy for Reverse Mortgage Program

Kevin McNichol — Mon, 01 Feb 2010 19:41:19 -0000

The administration expects 120,000 units for 2010? After January's total of 7,600 we are on a pace for only 90,000 or so. January's total was the lowest in the past 3 years. January has averaged about 9,500 over that time.

Re: Reverse Mortgage Legislation Update – January 21, 2010

Kevin McNichol — Fri, 22 Jan 2010 16:44:33 -0000

Derivatives came about because banks needed to protect earnings streams from the stuff banks are chartered to do. The problem is after traders felt they were invincible becasue of all the hedging derivatives allowed them to put in place that they decidied that derivative trading would be a great new earnings stream. That's when the FED said derivatives needed to be regulated. When they began to be used for speculation and they turned out to be right. It all started after Glass Steagle was repealed under the Clinton administration. Commercial banks were allowed to do what Investment Banks were doing and vice versa. Obama is basically saying we need a new Glass Steagle and he's right. Strap yourselves in, banks stocks and stocks in general are going down.. harder than people expect.

Re: Reverse Mortgage Legislation Update – January 21, 2010

Kevin McNichol — Thu, 21 Jan 2010 17:02:00 -0000

If you owned bank stocks wouldn't you sell them now?

Re: Reverse Mortgage Legislation Update – January 21, 2010

Kevin McNichol — Thu, 21 Jan 2010 14:48:10 -0000

Stocks are down becasue of the 40,000 new people that filed unemployment claims last week, China is cutting back on bank lending and they have been way over bought because of artificially low interest rates that have only one way to go.

The big banks owe us. We lent them billions for risk free purchases of failed banks, they are the first sector to regain health becasue of that, they have had no new regulations imposed, will continue to take on undue risk, and are too big to fail.

Re: California Reverse Mortgage Lender Files for Bankruptcy

Kevin McNichol — Thu, 21 Jan 2010 10:58:49 -0000

The new regulatory efforts are meant to eliminate these types of lenders. The problem is that there are excellent smaller lenders that may suffer as well.

Re: California Reverse Mortgage Lender Files for Bankruptcy

Kevin McNichol — Wed, 20 Jan 2010 14:08:20 -0000

For boomers, the sticker shock of how little they qualify for versus fees, and the drop in values will be a problem unless they absolutely need help. It might be 5 or 7 years before they are any real factor for us.

Re: Judge Voids Reverse Mortgage, Says Counseling Fails to Prove Competency

Kevin McNichol — Fri, 15 Jan 2010 13:03:34 -0000

We may not be able to tell that someone is mentally ill but we sure can see if someone is not fully able to understand what they are doing and or being manipulated.

This could be the event with the greatest impact on our business for years to come. This will not go away..nor should it.

There is no question that the number of lenders and consultants will shrink.

Re: Agencies Confident About Implementation of California Elder Protection Act

Kevin McNichol — Sat, 19 Dec 2009 09:16:00 -0000

Counselors and loan officers should be prepared to refer the homeowner to whatever agency/expert is appropriate for the guidance California wants. The responsibility to provide the proper contact info for government programs should be on the state, not us. Contact info for local legal and tax expert, associations should be made available as well. We shouldn't be asked to be responsible for anything other than the RM aspect.

Re: More Outreach and Innovative Approaches to Reverse Mortgages Needed

Kevin McNichol — Wed, 16 Dec 2009 20:38:02 -0000

What is the point of this article, to state the obvious? Nobody is stopping any of us from implementing innovative outreach ideas. Are we supposed to rely on the "industry" to develop them, or do so on an individual basis? Some lenders have picked up market share and some have lost market share. I wonder why.

Re: Reverse Mortgage Amendment Proposed to Consumer Financial Protection Agency Bill

Kevin McNichol — Fri, 11 Dec 2009 16:47:22 -0000

What is equity? Do people really work hard to build it up or did the market create it? If a home's value stayed the same as the day you bought it and you worked hard to pay off your mortgage would you have any equity?

Equity is a gift that can disappear as quickly as it can appear. It doesn't belong to anyone. Catch it while you can or else. Market movements erode equity to a much greater degree than RMs.

Re: Financial Freedom Raises Correspondent Net Worth Requirements, More to Follow?

Kevin McNichol — Sat, 05 Dec 2009 14:59:11 -0000

For the long term good of the industry and the homeowner there shouldn't be any variance in origination fees. Whatever sources remain have to be healthy so investment in the business continues. It's getting more expensive to find and fund a deal. For the most part the fee cutters can't provide the type of service and care the industry should want every borrower to receive. Compliance suffers, which is why the approved lenders will be looking more closely at who they do business with. Don't get me wrong. There are lots of great top rate correpondents out there that have always been and will continue to be a credit to the industry. They will hire the best people avaiable, remain very profitable and grow.

There will be investors that will form big correspondents by acquiring smaller ones to benefit from economies of scale. They will be able to afford working with servicing and/or processing companies that already have added compliance features into their services.

Once critical mass is reached variable costs fall. Eventually more of increasing revenue will fall to the bottom line.

This sounds like the "Walmarting" of the RM business. Hopefully we will never reach that point.