Here is an insight into what has been happening in the Reverse Mortgage Industry over the past few days:
FHA’s Proposal that suggested a new set of rules for the HECM program arises concerns from Reverse Mortgage Industry Stakeholders: The Federal Housing Administration has allowed people to submit comments on its latest proposal to change the HECM (Home Equity Conversion Mortgage) program till Monday, the 18th of July, 11:59 PM (ET). There have been 40 comments till now. While some of these are regarding the proposed rate cap, the others are about the community association rules that apply to the HECM program. As per these stakeholders, these changes may affect the FHA, the senior borrowers as well as the Reverse Mortgage Marketplace adversely.
New TV Spot by Liberty to highlight the success stories of Clients using their Reverse Mortgage Products: This is about a new national television campaign launched by Liberty Home Equity Solutions, during the last week. This is a commercial in which their clients share their Reverse Mortgage Experiences. It is going to be aired soon on all the cable TV networks of the country. As per their President Kent, this honest approach would highlight the depth of their industry knowledge as well as unmatched customer service in a much powerful manner.
Community Banks Recognize the Value of Reverse Mortgage Products: Smaller community banks are finding Reverse mortgages very appealing, with the largest lenders of the market abandoning the space due to a few industry issues. As per the community banks the HECM product is increasing in value because of the implementation of the consumer protections as well as new underwriting standards. They feel offering reverse mortgage products can help them in their primary goal of building long lasting relationships with their clients.
Changes in Reverse Mortgages force Personal Finance Columnist to change his Stance: Elliot Raphaelson, a financial columnist, who has always been very skeptic about the Reverse Mortgage Program, has changed his stance in his article on Chicago Tribune due to the recent changes in the Reverse Mortgage Products. The advantages that these products bring in to the borrowers in terms of low closing costs have forced him to take a second look at the Reverse Mortgage program. In his article he compares the same with the standard home equity loans, highlighting the benefits.
Details of Reverse Mortgage Financial Assessment Updated by the HUD: Reverse Mortgage Financial Assessment saw some changes in the details this week. A mortgagee letter was released by the Department of Housing and Urban Development late Wednesday evening. This included an updated HECM (Home Equity Conversion Mortgage) Financial Assessment and Property Charge Guide, along with an outline of changes to the latest rules pertaining to reverse mortgage.