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Apache is functioning normally

July 4, 2023 by Brett Tams

FHA, VA, Reverse News and Training; EverBank Name to Return; Movement Mortgage v DOJ in False Claims Violation?

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FHA, VA, Reverse News and Training; EverBank Name to Return; Movement Mortgage v DOJ in False Claims Violation?

By:
Rob Chrisman

Mon, Jul 3 2023, 10:25 AM

The other night my cat Myrtle began squeaking in her sleep and moving her paws. She was either dreaming about a Chupacabra, a CFPB exam, or the Department of Justice holding on line 2. Movement Mortgage, LLC, was caught up in the latter, and has agreed to pay the United States $23.75 million to resolve allegations that it violated the False Claims Act by “failing to comply with material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA)… Movement Mortgage admitted that it certified for FHA mortgage insurance and VA home loan guarantees a material percentage of loans that did not meet applicable requirements and, therefore, were not eligible under those programs, despite inaccurately representing to HUD and the VA that such loans complied with applicable program requirements. Movement Mortgage also acknowledged that HUD and the VA would not have insured or guaranteed the loans but for its submission of false certifications. Movement Mortgage further admitted that it failed to adhere to HUD and the VA’s applicable self-reporting requirements.” (Today’s podcast can be found here and is sponsored by Gallus, the premier business intelligence tool for the mortgage industry. With hassle-free insights and user-friendly functionality, Gallus empowers you to make faster, data-driven decisions for enhanced profitability. Hear an interview with Black Knight’s Frank Poiesz on how AI and associated technologies are helping streamline the origination process and what the future of originations looks like.)

HUD, FHA, Reverse, and VA News and Training

Guess who’s back? “EverBank,” a respected name in the biz, is seeing its name return. “The name change is being timed to the closing of the bank’s sale to investors later this summer. Following an earlier acquisition, the bank’s name was changed from EverBank to TIAA Bank in 2018. TIAA Bank is rebranding to EverBank. The stadium of the NFL team the Jacksonville Jaguars will be renamed from TIAA Bank Field to EverBank Stadium. In November 2022, the parent company TIAA sold TIAA Bank to private investors to help the bank move in an independent direction. TIAA will hold a minority stake in EverBank. The transaction is expected to close later this summer, with the name change taking place officially at the same time.”

EverBank/TIAA do its share of government loans, and in general those products constitute about 25 percent of applications. The U.S. Department of Housing and Urban Development’s Federal Housing Administration (FHA) announced that it will require lenders making FHA-insured mortgage loans to use the Fannie Mae/ Freddie Mac Supplementary Consumer Information Form (SCIF) to collect a mortgage applicant’s language preference. Using the form will enable lenders to make information available in the languages that borrowers will understand best.

Recall that last month, the FHA also launched its new language access web page, which provides translations of key FHA mortgage documents in the top five languages most commonly spoken by borrowers with limited English proficiency (LEP).

So yes, the U.S. Department of Housing and Urban Development (HUD) recently announced in Mortgagee Letter 2023.13 that lenders must use the Supplemental Consumer Information Form (SCIF) of Fannie Mae and Freddie Mac in connection with FHA insured mortgage loans with application dates on or after August 28, 2023.

As previously reported, in May 2022 the Federal Housing Finance Agency announced that for residential mortgage loans to be sold to Fannie Mae or Freddie Mac with application dates on or after March 1, 2023, the lender must present a SCIF to collect information on the applicant’s language preference.

Revisions to the Single Family Housing Guaranteed Loan Program (SFHGLP) technical Handbook-1-3555, Chapter 5, Origination and Underwriting Overview; Chapter 13, Special Property Types; Chapter 15, Submitting the Application Package; and Appendix 4, Agency Contact Information. These changes became effective upon the recent issuance of a Procedure Notice (PN).

And there is some training which revolves around government loan programs.

This August, The Single-Family Housing Guaranteed Loan Program (SFHGLP) is offering two Live and In-Person, training conferences at no cost to lending partners in St. Louis, MO. Loan Origination Training, August 15th and Loan Servicing Training, August 16th. Register for one or both, seating is limited. Training conferences will be offered in Lewisville, TX., September 12th and 13th

The FHA’s Office of Lender Activities and Program Compliance will conduct a series of free webinars on the FHA Lender Approval Application process as outlined in FHA’s Single Family Housing Policy Handbook 4000.1. This training series is designed to assist entities interested in becoming FHA-approved mortgagees (lenders). The three webinars will conclude with a live question and answer (Q&A) session. Session 2 – Non-Supervised Applicants on July 11, 2:00 PM – 3:30 PM (Eastern). This webinar will provide a detailed overview of the FHA Lender Approval Application process, the eligibility requirements, and required documentation for supervised and government mortgagees. Common application deficiencies will be addressed and tips for submitting a successful application will be provided.

FHA is conducting Application Workshop Series, free virtual webinars, designed for entities interested in becoming FHA-approved mortgagees (lenders). The webinars will conclude with a live question and answer (Q&A) session.

Session 1, Financial Requirements for FHA Approval was recorded on April 13, 2023.

Session 2 – Non-Supervised Applicants webinar on July 11, 2023 │2:00 PM – 3:30 PM (Eastern) will provide a detailed overview of the FHA Lender Approval Application process, the eligibility requirements, and required documentation for non-supervised mortgagees. Common application deficiencies will be addressed and tips for submitting a successful application will be provided.

Free, In-Person FHA Underwriting Training in Minneapolis, MN., July 11, 9:00 AM – 5:00 PM (Central). FHA representatives will provide an overview of FHA underwriting procedures and address a number of industry-related frequently asked questions (FAQs).

Free, In-Person FHA Appraisal Training in Minneapolis, MN., July 12, 9:00 AM – 5:00 PM (Central). FHA representatives will cover FHA appraisal requirements, including appraisal protocol and updates to appraisal policy and an in-depth look at a variety of appraisal-related topics including property acceptability criteria; minimum property requirements; property defects; appraiser responsibilities and requirements.

Join the leading minds in reverse mortgages at NRMLA’s Southern Regional Meeting, on July 13, in Austin, TX. Join other business owners, underwriters, compliance staff, attorneys, counselors, servicers, processors, and loan originators to be part of these discussions. Gain a competitive edge in the industry by learning from our expert speakers, who will share insights on the latest trends and developments in reverse mortgages. From market analysis to loan servicing best practices, this conference covers it all. Plus, network with fellow professionals, share experiences and discuss strategies for success. With a wide range of informative sessions, this conference is sure to provide value for all attendees.

Servicing is a critical, yet misunderstood, part of the reverse mortgage process. Even the most experienced reverse mortgage professionals who have years of experience originating reverse mortgages will sometimes find themselves misinformed. At NRMLA’s Southern Regional Meeting on July 13, 9:00 am – 5:00 pm, in Austin, TX, three of the top servicing experts in the business — Gail Balettie and Rex Lamb from Celink and Richard Burke from Longbridge Financial LLC — will provide pro tips on the most commonly asked questions that loan officers have.

Capital Markets

The second quarter rounded out with a “risk-on” feel that put Treasury and MBS prices down, and rates up, as month and quarter end indexing offset the beginning of the summer Friday lull. Don’t fight the Fed: Markets finally are coming to terms with Fed Chair Powell’s persistent statements about rates being higher for longer. Broader fixed income markets sold off and 10-year U.S. Treasury yields broke north of 3.80 percent in Friday’s session. Fed Chair Powell commented that a good part of the reason the Fed can continue to raise rates is due to the strong labor market. “Though policy is restrictive, it may not be restrictive enough, and it hasn’t been restrictive for very long,” he said last week. For most of 2022, the fed funds rate was below the inflation rate, which means that real interest rates were negative and thus stimulating to the economy.

Economic data released over the last week remained stronger than anticipated, certainly stronger than the “experts” who have been forecasting a downturn predicted. Durable goods orders for May rose 1.7 percent versus forecasts for a decline of 0.9 percent. Core orders rose 0.7 percent. Meanwhile, house prices appear to have bottomed out as limited supply pushed prices higher in April and new home sales were significantly higher in May than expected. Consumers also continue to spend as inflation-adjusted personal consumption rose at a 4.2 percent annualized rate in the first quarter, according to the final Q1 GDP release. Jobless claims data retreated from a recent, but brief upswing, and remains well below levels that would indicate a recession is looming. The strong data pushed rates higher over the week and expectations for an increase to the Fed Funds target in July are now at 87 percent. Fed speakers have commented recently that two more hikes may be on the table this year and the market is pricing in the timing for the second towards the end of the year.

We begin the abbreviated trading week, and today’s early close, with final S&P Global manufacturing PMI for June, May construction spending, and June ISM manufacturing PMI for June, all due out later this morning. Fixed income futures will settle at 1:00pm ET with SIFMA recommending a 2:00pm ET close for cash ahead of the Independence Day holiday. Not that anyone cares about locking in a loan today, but Agency MBS prices are unchanged from Friday’s close, the 10-year yielding 3.85 after closing last week at 3.86 percent, and the 2-year is up to 4.95 percent!

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Source: mortgagenewsdaily.com

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Apache is functioning normally

May 28, 2023 by Brett Tams

If you’re a senior, you might be wondering who the top reverse mortgage lenders in the nation are.

Unlike the traditional home loan market, the reverse mortgage industry is dominated by a small handful of companies.

Typically, these lenders specialize in reverse mortgage lending, as opposed to simply offering the loans alongside other options.

As a quick refresher, a reverse mortgage loan allows homeowners 62 and older (55 in some cases) to access cash in their property without monthly payments.

In 2021, reverse lenders originated 59,000 loans, a 36% increase from the 43,000 the year prior. Read on to see who made the top-10 list last year.

Top Reverse Mortgage Lenders

Ranking Company Name 2021 Loan Count
1. AAG 18,407 (31.3% share)
2. FOA Reverse 10,575 (18% share)
3. Reverse Mortgage Funding 6,177 (10.5% share)
4. PHH Mortgage 4,319 (7.3% share)
5. Mutual of Omaha 4,101 (7% share)
6. Longbridge Financial 3,636 (6.2% share)
7. Cornerstone First 3,296 (5.6% share)
8. Open Mortgage 2,444 (4.2% share)
9. HighTechLending 1,144 (1.9% share)
10. Nationwide Equities 705 (1.2% share)

Last year, the top reverse mortgage lender in the country was American Advisors Group, or AAG for short.

The company originated more than 18,000 reverse mortgages in 2021, per HMDA data from the Consumer Financial Protection Bureau (CFPB).

While that might not sound like a lot of loans, it represented a staggering 31.3% market share.

So one company grabbed nearly a third of the entire reverse mortgage market. And yes, actor Tom Selleck of Magnum P.I. fame has been their spokesperson for a while now.

For perspective, the nation’s #1 mortgage lender (for forward mortgages), Rocket Mortgage, held an 8.8% market share in 2021.

AAG was also number one in 2020 with a slightly higher 35% market share.

In second place was Finance of America Reverse, the reverse mortgage division of FOA.

The company funded more than 10,500 reverse mortgages during the year, giving them an also impressive 18% market share. They ranked second in 2020 also with a 20.2% share.

Coming in third was Reverse Mortgage Funding LLC, which originated more than 6,000 loans for a 10.5% market share. They were third a year earlier as well with a very similar share.

In fourth was PHH Mortgage, which also offers forward mortgages to customers. The company managed to originate more than 4,300 reverse loans for a 7.3% market share.

Rounding out the top five was Mutual of Omaha Mortgage with about 4,100 loans funded for a 7% share of the market.

Collectively, the top five reverse mortgage lenders held about 75% of the overall market.

In sixth was Longbridge Financial with 3,600 loans funded and a 6.2% market share.

Seventh place went to Cornerstone First Financial with nearly 3,300 reverse loans funded for a 5.6% market share.

Behind them was Open Mortgage with nearly 2,500 reverse mortgages originated for a 4.2% share of the market.

HighTechLending Inc. (dba American Senior) took ninth with about 1,150 loans funded and a 1.9% market share, followed by Nationwide Equities Corp. with 705 loans and a 1.2% share.

Altogether, the top 10 reverse mortgage lenders held about a 93% share of the overall market.

Who Are the Top Rated Reverse Mortgage Companies?

We know who the biggest reverse mortgage lenders in the country are, but what about best?

That’s a different story, and one that can be difficult to quantify due to the many ratings websites out there.

However, I did some digging to find a good sample size of reviews for each company listed to see what customers think of them. We’ll also check out their Better Business Bureau (BBB) rating.

Starting with AAG, they have an “excellent” 4.5/5 score on Trustpilot from nearly 5,000 customer reviews. Their BBB rating is currently a ‘B+.’

Finance of America Reverse has a “great” 4/5 score on Trustpilot from about 500 reviews and an ‘A+’ BBB rating.

Reverse Mortgage Funding LLC has an excellent 4.6/5 score on Trustpilot from nearly 600 reviews and an ‘A+’ BBB rating.

PHH Mortgage has a 3.9/5 on Consumer Affairs from about 600 reviews and a ‘B+’ BBB rating. Other review sites didn’t have a large enough sample size.

Mutual of Omaha Reverse has a 3.9/5 score on Trustpilot from over 100 reviews and an ‘A+’ BBB rating.

Longbridge Financial has a 4.8/5 score on Trustpilot from nearly 800 reviews and an ‘A+’ BBB rating.

Cornerstone First Financial has a 4.9 rating from about 250 Google reviews and an ‘A+’ BBB rating.

Open Mortgage has a 4.91/5 on Zillow from about 25 reviews (most I could find) and an ‘A+’ BBB rating.

HighTechLending Inc. (dba American Senior) has a 4.95/5 on Zillow from about 110 reviews and an ‘A+’ BBB rating.

Lastly, Nationwide Equities Corp. has a 4.98/5 on Zillow from roughly 110 reviews and an ‘A’ BBB rating.

Remember to look beyond just the top names and also consider mortgage brokers, local credit unions, and more for in your search for a reverse mortgage.

Source: thetruthaboutmortgage.com

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Apache is functioning normally

May 25, 2023 by Brett Tams

Older Americans are sitting on more than $12 trillion in home equity, according to the National Reverse Mortgage Lenders Association (NRMLA)/Riskspan Reverse Mortgage Market Index. These homeowners are seeking different retirement solutions to help allocate their home equity and make it more durable over the next 20 to 30 years.

According to data from Statista, there were roughly 5.95 million homes bought and sold in the U.S. last year. The National Association of Realtors (NAR) estimates that baby boomers made up roughly 39%, or 2.32 million, of those homes.

If we then look at data from the Federal Housing Administration (FHA), there were 2,063 Home Equity Conversion Mortgage (HECM) for Purchase loans endorsed in 2022 — less than 1/10th of 1% of homes sold last year.

Today’s market includes mortgage rates of above 6%, low inventory and elevated home prices, all contributing to affordability problems. Many of the baby boomers that have a mortgage on their current home likely refinanced during the pandemic to get a very low interest rate.

With all of this in mind, why would baby boomers move into a new home, where their expenses would be exponentially higher due to higher mortgage rates, increased inflation and current economic concerns?

Longbridge Financial, LLC, (NMLS #957935) believes that the answer to this dilemma is the HECM/Reverse for Purchase financing option.

“Many of these homeowners have a desire to move closer to family or to a more suitable home for their lifestyle in retirement. [They likely] would feel much more confident that they can keep a significant amount of the proceeds from their departure home and not have to make monthly mortgage payments, provided they continue to pay their taxes and insurance and maintain the home,” said Rob Cooper, National Purchase and Builders Sales Leader for Longbridge.

“If the industry were better educated on this option, there would be a significant increase in HECM/Reverse Purchase volume. There is an incredible opportunity for growth,” he said.

Why is this market underserved?

But despite the opportunity, the HECM/Reverse for Purchase market is underserved, Cooper said.

“Most real estate agents, builders and potential customers have no idea that this financing option exists to purchase homes,” he said.

Part of this may be due to the idea that it’s a niche product, said Adrian Prieto, SVP of Wholesale and Third-party Affiliates at Longbridge.

“Many in the housing and mortgage industries consider the reverse mortgage a niche product,” he said. “Now add the Reverse for Purchase product to the mix and you have a niche within a niche; that can make it even harder to break through.”

Few loan officers make the purchase product a main part of their business. Additionally, because HECM/Reverse for Purchase did not exist until late 2008, many don’t fully understand the value propositions the product poses.

“We can effectively open up a new line of customers for real estate professionals with this financing,” Cooper said.

The HECM for Purchase product

The product itself is relatively simple, Cooper said. The main difference between HECM/Reverse for Purchase and a traditional mortgage is that the amount of money required for a down payment is currently in the 60-65%* range, based on the age of the youngest borrower and other factors.

The customer would bring roughly 60-65% to the table and the reverse mortgage lender would provide the other 35-40% for the transaction.

“The big difference is that monthly mortgage payments are optional so long as the borrower continues to maintain the home and pay their property taxes and insurance,” Cooper said.

Prieto noted that the product gives borrowers the option to “right-size” their home based on their retirement goals and living situation while creating cash flow.

Opportunities and benefits

HECM/Reverse for Purchase represents a big opportunity for agents, lenders and builders, as well as customers.

Real estate agents, loan officers and builders can attract customers they have never captured before. They can help mature customers who have looked at multiple homes and shown all the buying signals but never transacted — for a variety of reasons, but largely due to finances.

The HECM/Reverse for Purchase allows the customer to feel more financially secure in making that purchase — they can get the home they want, where they want it, with a bit more control over their financial situation. They’re able to keep a significant amount of their proceeds from their departure home with the flexibility to make monthly mortgage payments or not, provided they comply with the loan terms, including tax, insurance and maintenance costs.

“The opportunity to provide agents, builders and loan officers with a flexible, dynamic product that expands their portfolio to a growing and untapped market is very enticing,” Prieto said. “If you have someone over 62 years old looking to purchase a home with a traditional mortgage, I highly recommend they compare that option with the Reverse for Purchase. Once you do the comparison, you’ll notice how dynamic the program is and how well it can position someone in their retirement phase of life.”

Longbridge Financial’s approach

The reverse industry has been working hard for years to educate real estate agents, builders and loan officers on the advantages of HECM/Reverse for Purchase, and Longbridge Financial is taking multiple steps to expand its own education efforts.

The company is launching its Reverse for Purchase Roadshow in two cities this summer, with more locations to come. The goal is to educate loan officers who are already partners, as well as loan officers that are unfamiliar with reverse mortgages, on how big of an opportunity the HECM/Reverse for Purchase product is, especially in the current market.

“Many of these loan officers have existing relationships with real estate agents and builders,” Cooper said. “If they can educate their partners on HECM/Reverse for Purchase financing and how to implement and market to mature home buyers and sellers, it could have an impact on the overall purchase volume.”

Longbridge has also created a dedicated Purchase Fulfillment Team to ensure it hits estimated closing dates. Closing these purchase loans on time and communicating effectively throughout to the builder and real estate partner helps build long-lasting partnerships.

The company continues to look at more strategic ways to brand the product, but it all comes back to education. Longbridge consistently holds Purchase training calls on the product, best marketing practices and how best to communicate expectations to all parties involved –  and they offer a plethora of supporting marketing collateral.

“As a top reverse mortgage lender, LBF is committed to educating, marketing and training our business partners on the optimal and safest ways to utilize home equity in retirement,” Prieto said. “We are pouring resources into the Reverse for Purchase program with an intent to educate business partners and older homeowners nationwide. We know how much the Reverse for Purchase can help, and we want to get the message out there.”

To learn more about Longbridge Financial’s HECM/Reverse for Purchase program, contact an Account Executive at [email protected] or click here.

*This down payment range assumes closing costs will be financed into the loan. The information being displayed is for illustrative purposes only. Actual cash required may vary and is based on age of youngest borrower, interest rate, home value, and other factors. Please contact Longbridge Financial LLC for details about credit costs and terms.

Source: housingwire.com

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