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Mortgage Burden for Bales Familiar Story for U.S. Troops
Bloomberg Bales and his wife owned a home in Washington state she was trying to sell for less than its mortgage and another that sits empty with a “Do Not Occupy” sign from the city on the door. At one point, the couple owed more than $ 500000 on the homes. Soldier Accused Of Afghan Massacre Had Brushes With The Law, Financial Troubles |
Archive for the ‘Mortgage News’ Category
Mortgage Burden for Bales Familiar Story for U.S. Troops – Bloomberg
Monday, March 19th, 2012
Genworth to Roll Out Reverse Mortgage Financial Assessment in Q1
Monday, March 19th, 2012Genworth Financial Home Equity Access plans to roll out a three-phase financial assessment implementation by the end of the quarter, the company confirmed Friday.
The phased approach is one that has not been fully tested by other lenders. MetLife, the first company to implement new underwriting guidelines following industry guidance from the Department of Housing and Urban Development and the National Reverse Mortgage Lenders Association, later suspended the new policy when other lenders failed to follow suit. Urban Financial Group later announced it was seeking feedback on a draft of a financial assessment for borrowers, but has yet to implement any changes to its underwriting or financial assessment guidelines.
Most lenders agree that some form of financial assessment is needed, but have struggled with the details of such an assessment and the right way to implement it.
“Limited underwriting on property charges is a reasonable solution that should improve the long-term integrity of the HECM Program,” GFHEA president and CEO Pete Engelken told RMD in an email. “Our emphasis when creating the guidelines is to make the new process simple for everyone.”
While GFHEA is mum on the details of its assessment, the company has stated its plans to implement changes in three phases; a process that the company has stated it plans to begin in the first quarter of 2012.
“Our plan is to implement limited underwriting guidelines in three phases,” Engelken said. “Phase 1 will be getting feedback from our customers, such as brokers and correspondent lenders. We will publish guidelines, introduce new calculator technology and ask for comments.”
After the initial phase, GFHEA plans to look to its retail channel and then other channels after testing internally.
“In phase 2 we will test the program in production with our retail channel and make adjustments as appropriate (no wholesale business will be affected during phase 2). In phase 3 we will roll out the guidelines to all business channels,” he said.
GFHEA has not stated a time frame for implementation beyond its Q1 plan.
HUD is working on its own financial assessment, which the Department told RMD in early 2011 will require several months of rule making.
Written by Elizabeth Ecker
CNBC: Reverse Mortgages Getting Rid of a Bad Reputation
Sunday, March 18th, 2012Reverse mortgages are becoming more attractive to seniors and they’re gaining respectability in today’s market, a CNBC article published this week says.
The report, published following the release of a new study conducted by the MetLife Mature Market Institute and the National Council on Aging, takes a look at the downward trend in borrower age for reverse mortgages.
“Whether it’s the ads, the financial necessity, or both—reverse mortgages have become attractive to more seniors,” the article states, citing volume data over time.
That attractiveness is expected to continue for younger borrowers, One Reverse Mortgage chief operating officer Gregg Smith told CNBC.
“We’ve noticed the age range for reverse mortgages getting ‘younger’ for us,” Smith said. “But when you figure that some 10,000 people a day retire in the U.S., we’re seeing this grow among all seniors and believe it will get even bigger in the next ten years.”
Another selling point for reverse mortgages, says CNBC: the gain of respectability.
“Those ads aside, reverse mortgages are getting rid of the bad reputation they’ve had in the past,” Mark Goldman, a real estate professor at San Diego State University told the news outlet. ”The loans are backed by the government and more financial planners are looking at them as a viable option for their clients,” Goldman continues. “With mortgage rates low, and reverse loan fees dropping, they can make good sense.”
Read the CNBC article.
Written by Elizabeth Ecker
Reverse mortgages can be beneficial, if you know how to use them – Washington Post
Saturday, March 17th, 2012 Washington Times |
Reverse mortgages can be beneficial, if you know how to use them
Washington Post As the country's home-owning population ages and baby boomers hit their mid 60s, it is time to take another look at the once-popular mortgage product known as the reverse mortgage. In a reverse mortgage, the bank loans you cash in a lump sum, … FHA cuts prices on refinance mortgages FHA refinancing program means savings for those who can qualify Housing: Refinancing FHA loan can be streamlined if you meet criteria |
HUD Awards $4 Million in Reverse Mortgage Counseling Funds
Saturday, March 17th, 2012Reverse mortgage counseling agencies will receive $ 4 million in grants to be allocated across agencies this year. The Department of housing and Urban Development today announced the funding as part of $ 42 million in total housing counseling grants.
“This will help lower the cost of [reverse mortgage] counseling,” HUD Secretary Shaun Donovan told RMD in a press call following the announcement. “Without these grants, that service would either not be available or would be significantly more expensive.”
The funding, which was wiped out last year in a last minute budget deal, was later restored under the Obama Administration’s budget appropriations for 2012.
Some reverse mortgage counseling agencies reported following the funding cuts that they were forced to raise the cost of counseling to potential borrowers beyond the traditional $ 125 fee. Others, which had previously been able to offer free counseling, had to reintroduce fees. The discrepancy led to longer wait times for those seeking the counseling as a result.
The initial reception of the funding is positive, says Scott Scredon, director, public relations for housing counseling agency CredAbility.
“We’re very pleased with HUD’s decision to provide this level of housing counseling support,” Scredon told RMD. “It will help us serve so many more seniors.”
CredAbility will use the funds to provide free counseling for approximately 2,400 individuals who qualify as low income borrowers.
Especially in light of the housing crisis, counseling has proven essential for millions of American families, Donovan said.
“During this crisis, the services have become indispensable,” he said. “More than 6 million families have been helped.”
Written by Elizabeth Ecker