Disqus - Latest Comments for jsmaldone

Re: Reverse Mortgage Endorsement Numbers Begin to Show Surge

John A. Smaldone — Tue, 05 Dec 2017 20:11:11 -0000

First off, what my friend Jim Veale just stated has a lot of Merritt to it.

However, we should not get exited so quickly, we are seeing the surge due to the rush of case assignments pulled prior to October 2nd.

A true surge will occur when the industry figures out how to go about approaching new markets, accepting the changes that have come into play and come to grips that the large commission payouts of the past on each closed loan are not going to be there any more.

This does not mean one can't be successful in this industry, on the contrary. If we can adapt the way I outlined it above, an LO can do more volume and make as much as they ever have. Think real hard on that one my friends!

John A. Smaldone
www.hanover-financial.com

Re: Why a Republican CFPB Director Might Not Reduce Reverse Mortgage Regulation

John A. Smaldone — Tue, 05 Dec 2017 20:02:46 -0000

Since the inception of the Dodd-Frank bill and the formation of the CFPB, the CFPB has had its guns out for the HECM program. This will not end unless we either repeal the Dodd-Frank bill, which would be the best solution for all concerned, or, restructure the CFPB completely, period!

John A. Smaldone
www.hanover-financial.com

Re: Reverse Mortgage Margins Fall As Lenders Compete Under New Rules

John A. Smaldone — Mon, 04 Dec 2017 20:01:33 -0000

We are in for a hay ride, no doubt about that. However, we need to watch how low we go, that can boomerang on us as well!!

My friend, Sherry Apanay put it very well when she said, "Despite some grumblings in the industry concerning the recent changes, the future of the reverse mortgage industry is incredibly exciting"!

These changes really establish HECMs as more of a mainstream product, and it’s up to those of us in the industry to find ways to expand the market beyond where we’ve penetrated to date.

Very well said Sherry, if you read into what Sherry is saying, she is saying we have to be innovative. We need to be creative. We need to go beyond what anyone would expect!

Then and only then will success be at our finger tips! We may not have the perfect map yet RMAdvisor but the refined maps will come. We have to let the markets do there job along with our being innovative at the same time!

John A. Smaldone
www.hanover-financial.com

Re: Dodd, Frank, Waters Say the Fight for the CFPB Isn’t Over

John A. Smaldone — Fri, 01 Dec 2017 19:09:24 -0000

This is ridiculous, The President made his choice, that is what counts and what holds up in a court of law!

Rep. Maxine Waters will fight on any issue, especially those she knows nothing about!

As far as Michael Barr is concerned, he drafted a bill in favor of a take over of our entire financial industry, his intentions were not in favor of the American people but in favor of those who paid him. Consumer Financial Protection Bureau, that is a mouthful of words that means the opposite of what it really is!

I am sorry but I am telling it like it is, research it yourselves, you will find what I am saying is on target!

John A. Smaldone
www.hanover-financial.com

Re: Think Tank Predicts Sunnier Reverse Mortgage Reports to Come

John A. Smaldone — Fri, 01 Dec 2017 18:57:29 -0000

My comment is simple, removal of the Home Equity Conversion Mortgage from the Mutual Mortgage
Insurance Fund makes the most logical sense!

Let the HECM stand on its own! One thing is for sure, by allowing it to stand on its own, we will find out for sure if the HECM was the culprit or the Hero!

My money is on the HECM being the hero!!

John A. Smaldone
www.hanover-financial.com

Re: Judge Rules Trump’s Pick Will Remain Acting CFPB Director

John A. Smaldone — Thu, 30 Nov 2017 18:26:12 -0000

There could be no other decision handed down. The President's choice takes prescience over that of Cordray's choice!

John A. Smaldone
www.hanover-financial.com

Re: Whose Agency is it Anyway? CFPB Has Two Acting Directors

John A. Smaldone — Tue, 28 Nov 2017 14:35:43 -0000

I can tell everyone reading my comment this, the agency sure is not in the hands of the American people and never has been!

The CFPB has always been a troublesome part of the Dodd-Frank bill in my opinion. As far as I always have been concerned, the CFPB has been anything but a consumer protection agency.

The CFPB has imposed more regulations on our financial industry than I can ever remember!

As far as what the CFPB is today, it is a mess, worse than ever. This whole situation is embarrassing and to see tax payers dollars being spent on law suits over this is pure criminal!

This is just another political nightmare, it is like a puzzle with no way to put it together! What else is new?

John A. Smaldone
www.hanover-financial.com

Re: Reverse Mortgage Industry Leaders Emphasize Need for Program Stability

John A. Smaldone — Mon, 27 Nov 2017 17:14:52 -0000

Interesting, Joe DeMarkey has brought to light a lot of truth, especially where the FHA is concerned on the backlog of loan assignments.

This in fact is a reason for many of the HECM program’s financial woes.

The lack of having the ability to administrate properly on the part of FHA as more of these loans are being assigned to them has created a major financial strain.

As Joe DeMarkey stated, without a HECM program that is fiscally sustainable, we don’t have an industry, the problem must be solved, period!

I personally am confident with the Trump administration, the problem will be solved. At least it is not being hidden away under some table in a closet. It is being talked about and the problem is being brought to the forefront!

There are pluses as the article points out. We as an industry have to stop emphasizing this problem to the point that it will be uncontrollable.

We are going through a horrible period right now, the industry is still trying to close loans that were pushed in prior to October 2nd. Underwriters are so pressured that many mistakes are being made. Unnecessary missed conditions are occurring on the first go around, creating condition after condition coming back to processors on the same file. It is taking an unusual amount of time to get a CTC but this will not last forever!

This nightmare will end and stabilization will return, we as an industry must work with one another, restrain the frustration and get through it, we have no choice for now!

John A. Smaldone
www.hanover-financial.com

Re: Finance of America Reverse Sees Success with Jumbo Product

John A. Smaldone — Wed, 22 Nov 2017 12:50:58 -0000

AMEN and Happy Thanksgiving Jim!

John

Re: Reverse Mortgage CEOs Challenge Industry to Expand Past HECMs

John A. Smaldone — Mon, 20 Nov 2017 10:06:53 -0000

Reza Jahangir's comments are very interesting and maybe should be taken vary seriously.

In short, he is saying don't just rely on the HECM to survive the future? I foresee many of our GNMA issuers, like AAG and FAR expanding their horizons into proprietary programs. Take FAR as an example, look what they have done to their Jumbo program (HomeSafe).

This may be the trend and I mean a trend approaching very quickly. I am not saying we should take our HECM or the reverse mortgage and make it secondary to our business model, on the contrary!

I am saying, push hard to develop new markets for the HECM, take advantage of what we have to capitalize on, look at the rising equity in homes owned by seniors! However, at the same time, lets look to add a different product or two to our menu! What say you?

John A. Smaldone
www.hanover-financial.com

Re: HUD: Reverse Mortgage Program Continues to Drag on Insurance Fund

John A. Smaldone — Fri, 17 Nov 2017 19:57:30 -0000

I agree 100% with my friend Jim Veale. He has done his homework on this subject and hit many targets right on the head!

Very good comment Jim, I can't come up with one better, you take the number one spot on this one guy!

John A. Smaldone

Re: Richard Cordray Steps Down as CFPB Director

John A. Smaldone — Fri, 17 Nov 2017 19:48:11 -0000

I am sorry all but I can't support Richard Cordray as being the great leader the article makes him out to be.

I also feel since the inception in 2010 of the "Financial Regulatory Reform Bill", commonly known as the "Dodd-Frank" bill, our entire financial system has been in a turmoil!

The creation of the "Consumer Financial Protection Bureau" (CFPB) has been anything but a bureau of protection for the consumer.

The CFPB has been given more autonomy than any committee, bureau, board or what ever you want to call it in the history of this great nation!

More community banks have failed nationwide since its inception, more regulations have been perpetrated on the financial industry than ever before and our industry has suffered because of them dearly!

I am sorry but I have to be honest and vocal with my opinions and as far as I am concerned, the US senate is doing this country a disservice by sitting on this bill in the senate and not taking action to repeal it!!

John A. Smaldone
www.hanover-financial.com

Re: Ginnie Mae Official Issues Warning About HECM-to-HECM Refinances

John A. Smaldone — Fri, 17 Nov 2017 19:20:39 -0000

Predatory lending and refinancing will never completely end, it will always be in the reverse mortgage space as well as the forward side of the world.

However, I feel with the new ruling and the lowering of the PLF, we will see less HECM to HECM refi's, not more!

As far as lenders following NRMLA's guidelines on the eliminating HECM to HECM refi's, we are dreaming if that guideline will be followed!

John A. Smaldone
www.hanover-financial.com

Re: Finance of America Reverse Sees Success with Jumbo Product

John A. Smaldone — Wed, 15 Nov 2017 12:57:09 -0000

Good move on the part of FAR and Sherry Apanay's team. There is a market for the Jumbo reverse and this latest change by Far will help. to stir up business!

I agree with my friend Jim Veale, it would be great to see others come into the market with their own proprietary program.

However, in order to come into the market with those products, one has to have the investors covering the creative and innovative products in the secondary, FAR has accomplished that!

John A. Smaldone
www.hanover-financial.com

Re: Reverse Mortgage Changes Bring Rate Competition, Program Stability

John A. Smaldone — Mon, 13 Nov 2017 11:35:13 -0000

Interesting article, interesting comments! I agree to one extent with Mac Tennant but I disagree with him on the lowering of the PLF. As far as I was concerned, that was unnecessary and does more harm than good for the HECM and our seniors!

I agree with Glen Smart of Nova on the H4P. With the announcement last month of no longer requiring a certificate of occupancy prior to application on an H4P, this should open many doors.

It still will not be as easy as it sounds but it will make a difference to those who focus on the H4P and approach the real estate industry properly!

I see both Tennant and Smart feel they will see an exit of many players in the market, I tend to agree with that assumption. As far as a major competition battle on interest rates to minimize the principle limit impact, time will tell. I don't plan to set the stage for that until it actually happens!

The change is what it is, we accept it, find new ways to beat it or move on and out! There are new markets out there for us, we need to set our expectations in different directions.

We need to be more innovative in this new market of changes. We still have a great product that has many uses for our seniors, maybe it is time we set our sights at higher and different levels.

John A. Smaldone
www.hanover-financial.com

Re: HECM Credit Line Growth Could Slow Substantially Under New Rules

John A. Smaldone — Thu, 09 Nov 2017 10:59:10 -0000

I felt Shelley Giordano made some very good points. It is true like The_Cynic has pointed out, you can't compare the LOC to other insurance policies.

As far as a one time cost, that is not the case, there is the 0.5% annual MIP cost, charged monthly. Who knows, we may also see servicing fees come back!

I liked what Shelly said about loan officers not being defensive about the initial MIP costs associated with the loan! Instead, explain it as a benefit that allows for the non-recourse feature and the protection of their LOC, tenure income or monthly income for a time certain.

Yes, I believe this will slow down the usage for the LOC but definitely not eliminate it. I feel we are going to be our own worse enemies in this latest change. Physiologically it is creating to many LO's to over talk about the new ruling. In many situations, there is no need even to discuss the new ruling. Go on with business like normal, explain what the HECM is today as if no changes were ever made!

Sure, if you run into someone that asks about the new ruling because they were aware of it, explain away but don't let October 2nd be a deterrent for you to move forward! If you do, it will be your misfortune!

John A. Smaldone
www.hanover-financial.com

Re: Financial Assessment Continues to Reduce Reverse Mortgage Defaults

John A. Smaldone — Wed, 08 Nov 2017 16:50:47 -0000

Your advise is well taken my friend!

God speed,

John

Re: Cordray Seeks CFPB Board’s Help to Spread Reverse Mortgage Warnings

John A. Smaldone — Tue, 07 Nov 2017 13:23:32 -0000

I have to agree with my friend Jim Veale. The delay of taking social security by using the HECM as an interim income stream is the weakest strategy I have seen.

Now, if the HECM was used for other purposes as well, such as paying off existing debt on the home and paying off other debt, then you would be accomplishing many objectives at the same time.

I can't say I am a champion supporter of Director Cordray or the CFPB but in this case, I side with Jim Veale!

John A. Smaldone
www.hanover-financial.com

Re: Reverse Mortgage Brokers See Slow October With New Rules in Play

John A. Smaldone — Mon, 06 Nov 2017 18:08:19 -0000

Cynic,

You brought up many good points. I remember the FNMA days, pre-2007 very well.

As far as gouging in our industry today, no doubt it is going on. As far as the origination fee, it appears it is back again!

John A. Smaldone

Re: Financial Assessment Continues to Reduce Reverse Mortgage Defaults

John A. Smaldone — Mon, 06 Nov 2017 17:27:30 -0000

I would hope that the default level would reduce, at least on loans that were made after April of 2015. It was bound to and should continue to do so.

I would like to see a graph year to year from April of 2015, it would be interesting to see the results. Better yet, I would like to see a graph, each year going forward from the April, 2015 date and then a comparison year going back each year prior to April, 2015!

That would be an interesting graph to see the default rate difference, this would give us a true an accurate measure of the effective results of FA.

John A. Smaldone
www.hanover-financial.com

Re: Five Essential Reverse Mortgage Comparison Resources

John A. Smaldone — Mon, 27 Mar 2017 20:11:18 -0000

Cynic,

I appreciate your input, you are A-OK!

John

Re: Five Essential Reverse Mortgage Comparison Resources

John A. Smaldone — Fri, 24 Mar 2017 10:59:45 -0000

Good article by Alex. I don't know if I agree with all the points that Jack Guttentag brings up. Especially the one about the "Shared Appreciation Mortgage" (SAM)!

Prior to 1989 a great deal of the so called SAM's were being done by the private sector mortgage companies and major lenders. This one one good reason for the HECM to come into play during the Regan administration with FHA & FNMA. I personally never liked the shared appreciation clause and feature and still do not! This is my opinion only but I hope it does not become popular again. However, I have heard there are some out there.

The article by Alex was could because it is one that should create a lot of discussion and controversy!

John A. Smaldone
www.hanover-financial.com

Re: New Firm Acquires HERMIT Reverse Mortgage Software

John A. Smaldone — Tue, 21 Mar 2017 20:21:24 -0000

Briant idea if it can be pulled off! Very innovative!!

John A. Smaldone
www.hanover-financial.com

Re: NBC News: Widow’s Reverse Mortgage Tale Reveals Risks

John A. Smaldone — Tue, 07 Jul 2015 16:02:26 -0000

This is sad, very sad. I say that because in the case of this widow there is no doubt that the loan officer in question perpetrated a grave injustice to Eighty-two-year-old Arlene Hill.

We may not know the full circumstances at the time the loan application was taken but it definitely sounded like the objective of the loan officer was to get the most out of the loan without going into the many pitfalls in doing something of this nature.

However, this was not because the reverse mortgage itself was a bad program, it was because of the bad loan officer. Unfortunately, this happens in many type of loans, not just reverse mortgages. This is why seniors and all people looking to either refinance their home or purchase a new home need to check out the company they are dealing with and make sure the loan officer has a good reputation.

There is nothing wrong in asking for references on both the company and the loan officer.

To the next point, the CFPB and their aggressive attack on the reverse mortgage industry and its advertising. The CFPB is on a witch hunt for our industry, they pretend to protect the senior, well, we know the truth behind that.

Let us look at the reputable companies that are dominating the air waves like AAG and their spokesman, Fred Thompson. Their ads are not misleading or false. AAG even offers a complete free kit explaining in detail what a reverse mortgage is all about. Other reputable companies are doing the same thing!. Funny they don't mention companies like AAG and the others that are making the industry a proud one to be part of, isn't it?

Grant you, their may be many small companies the have ads running that may be misleading and make false statements in them. I applaud the CFPB for going after them, they should!

Instead, what the CFPB has been doing is making it appear the entire industry is in violation of misleading our senior consumers and that is the furthest thing from the truth!! Read the CFPB's report, then tell me how they are depicting our industry? Shame, shame on our Federal Government and the bills they pass?

John A. Smaldone

Re: HuffPo: Couple Uses Reverse Mortgage to Buy Ideal Home

John A. Smaldone — Tue, 30 Jun 2015 17:01:02 -0000

My friend The_Cynic makes some good points, however, I must disagree in some ways.

Lets look at questioning their judgement in a different way. The Holliman's had a dream, they lived in this 1,300 square foot home for roughly 36 years, they were looking to retire, plus wanting to leave the snow and cold of winter to be in sunny Florida!

They discover a program called the HECM for purchase program. Ah, now they find out they just may be able to reach their goal and latch onto their dream earlier than they thought. OK, they took SOME of their investment portfolio but not anyway near what they thought they would have had to come up with, untill the HECM for purchase came their way!

They were able to retire 10 years earlier, they still had a decent investment portfolio in tact to fall back on, they have a larger home, they have no more mortgage payments and their dream has come through.

Isn't this what a reverse mortgage is supposed to be all about, improving the quality of one's life. The Holliman's did that and more.

It is all in the eye's of the beholder, I feel the Holliman's did the right thing and they sound like they are a lot happier today for it.

John A. Smaldone