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Mortgage Cadence Gears Up for New Reverse Mortgage Underwriting

23.05.12

The FHA’s HECM Program Update, issued Oct. 5, 2011, included an update indicating that the Activity be contingent of Housing and Urban Development does not prohibit additional financial capability and credit assessment tests on HECM applicants. Then, on Oct. 27, the National Reverse Mortgage Lenders Linking released guidance on limited underwriting for property charges, meant to assess a loan applicant’s function and willingness to pay property charges.

Since then, many lenders have adopted these guidelines or in the process of doing so, while some have created their own economic assessments to conduct on prospective reverse mortgage borrowers.

As the industry begins to implement these assessment, it’s distinguished that lenders make the necessary adjustments to their underwriting processes to account for the changes, says Mortgage Lilt.

“In order to stand the test of time, reverse lenders must be flexible to meet changing peddle conditions,” John Levonick, chief legal and compliance officer for Mortgage Lilt said in a statement, adding that Mortgage Cadence “continuously stays in advance of industry regulations to offer our clients the guidance they need to sustain their job.

Source: Reverse Mortgage Daily

Barney Frank to Retire, Reverse Mortgage Industry Loses Supporter

23.05.12

Sincere held the position of Chairman of the House Financial Services Committee and is now a ranking associate, and has had a longstanding political role in the regulation of financial products including mortgages and reverse mortgages. Most recently, Truthful co-authored the Dodd-Frank Wall Street Reform and Consumer Screen Act, which was signed into law in 2010 and mandates changes to U.S. financial governance that continue to be implemented. Under Dodd-Explicit, the Consumer Financial Protection Bureau, which oversees mortgage products including reverse mortgages, was created. Also under Dodd-Unrestricted, the reverse mortgage industry has seen changes to loan officer compensation, among others.

During a press conference Monday Honest said it has become increasingly difficult to make meaningful change in Washington.

“Our government has evolved in a way that makes it harder to get anything done at the federal level,” Frank said in set remarks for members of the press on Monday. “I believe that I have been effective as a Colleague of Congress working inside the process to influence public policy in the ways that I of are important. But I now believe that there is more to be done trying to change things from outside than by working within.”

Unrestricted said he has been considering retirement since the completion of the passage of the Dodd-Frank bill last year and that he has been thinking about pursuing an interest in criticism.

With respect to the reform bill and its critics in Washington, Frank said he remains vexed about financial reform.

“I was—and am—concerned about right-wing assaults on the financial rehabilitation bill, especially since we are now in a very critical period when the bill is in the process of implementation,” he said.

Recently, Council Republicans have blocked the nomination of a leader to direct the new CFPB, among other critiques of the legislation. However, commerce leaders say he will be missed.

“His departure from Congress will be a big loss to the reverse mortgage sector,” Bell said.

Additionally, the American Bankers Union issued a statement in response to the decision, touting Frank’s operation.

“Rep. Frank has always been a formidable but fair legislator who understands financial markets and the obligatory role banks play in the broader economy,” said American Bankers Affiliation President and CEO Frank Keating. “His depth of knowledge and willingness to be pending to opposing viewpoints will be greatly missed.”

Written by Elizabeth Ecker

Source: Reverse Mortgage Daily