The 10 Best Reverse Mortgage Daily Stories of 2021
2021 has now passed, and with it another atypical year for the reverse mortgage industry, the United States, and the rest of the world. While 2020 was understandably dominated by the onset of the COVID-19 coronavirus pandemic and the company’s adjustment to it, there were also notable national events that would shape the reverse mortgage industry. , not least of which is the transition to a new presidential administration and the establishment of new political priorities that go with it. The reverse mortgage program has not been spared by the changing political realities.
In contrast, 2021 was a year of adjustment to a new normal. The pandemic continues to persist, but the development of various treatments not available the previous year have given the country – and indeed, the reverse mortgage industry – new tools to adapt as things start to be. different. Reverse Mortgage Lenders introduced a series of new products and initiatives designed to broaden the borrower base that can be served, while at the same time the industry relied more on existing customers than at any time in the past 12 years. years.
However, these big events do not always translate into the “most read stories” about MSY. Sometimes they do, but you might be surprised to see which stories grabbed the readers’ attention the most. To that end, here are the top 10 most read stories posted on RMD in 2021.
- White House announces extended moratorium on lockdown, HUD delays service reviews (June 24)
Indicator of some of the political changes seen during the year, Joe Biden’s administration announced in June a further postponement of a moratorium on foreclosures resulting from the pandemic first instituted the previous year under the administration of Donald Trump. Earlier this year, the White House also announced that a series of revisions to mortgage management policies for single-family homes – including a new taxonomy of defaults – would be pushed back to March 2022. It remains to be seen whether the new directives will come into force. as expected, however, as a new, more virulent variant of COVID-19 is hitting the U.S. healthcare system hard.
- Reverse Mortgage Limit Rises to $ 970,000 in 2022 Amid FHFA Limits (November 30)
The release of a new Home Equity Conversion Mortgage (HECM) loan limit continues to generate great interest among the RMD public, but the way the new limit was rolled out was certainly unconventional. In an unexpected move in late November, the Federal Housing Administration (FHA) raised the loan limit for the HECM program on the same day that the Federal Housing Finance Agency (FHFA) announced it would increase compliant loan limits. on mortgages to be acquired. by the Federal National Mortgage Association (FNMA, or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (FHLMC, or “Freddie Mac”).
In addition to this unusual cadence for announcements, the loan limit itself now stands at $ 970,800 for 2022, increasing at a rapid rate in conjunction with high levels of home price appreciation (HPA). With a reverse mortgage limit of nearly $ 1 million, some in the industry have speculated for RMD that the proprietary reverse mortgage market could be negatively affected, but such an event remains to be seen.
- Watch These 4 Reverse Mortgage Industry Trends In 2021 (January 3)To examine potential steps lenders could take in 2021 and assess the political landscape for the year, the focus was on technology: making it easier for borrowers to interface with their loans and with their services. . RMD also speculated at the time that higher loan limits might somehow interact with the exclusive market, but this forecast might be better suited for 2022 given another notable increase in the amount. maximum HECM claims (MCA).
There were certainly a lot of differences to be seen in 2021 when it came to the posture of the federal government. The HUD has made it clear that it wants to focus on addressing potential inequalities in home ownership, while the Consumer Financial Protection Bureau (CFPB) has seen a very active interim director give way to a new leader. full-time employee with a long standing regulatory reputation. As expected, however, no transformative changes in HECM policy were found in 2021.
- FHA extends moratorium on evictions, but foreclosures set to resume on schedule (July 30)Relief aimed specifically at homeowners became a natural concern in the pandemic’s first year, so when the FHA announced it was extending a moratorium on evictions specifically related to foreclosures until the end of September 2021, it sparked a lot of interest. Perhaps more surprising to some is when the FHA specifically said the previously extended lockdown specific moratorium would expire on schedule at the end of July and would not be renewed.
Part of the reasoning, according to the agency, was to target relief more specifically on households that are in serious distress, namely those whose seizure would have resulted in eviction. This moratorium expired at the end of September, but some states have decided to extend their own similar restrictions.
- FHA Formally Drops LIBOR for Variable Rate Reverse Mortgages and Adopts SOFR (March 11)
In long-awaited news, the FHA announced in March that the HECM program would move from besieged London Interbank Offered Rate (LIBOR) to floating rate HECMs, and instead move to the secure overnight finance rate. by day (SOFR). just like the hope previously expressed by the industry. This was formalized with the publication of Mortgage creditor letter (ML) 2021-08.
“Through its proper use of the authority granted by the Reverse Mortgage Stabilization Act, HUD has enacted a policy that will strengthen HECM’s place in a more widely accepted and mainstream mortgage market,” said Steve Irwin. , President of the National Reverse Mortgage Lenders Association (NRMLA). time. “This policy will also continue to enhance the safety and soundness of the HECM program, which is always a key factor in the development of HECM policies.”
- The White House unveils the priorities of the 2022 budget, in particular for housing and seniors (April 11)
It’s still a curious development for the industry to see how new political leadership will position the HECM program, and although this budget proposal from the Biden administration hasn’t made that as clear as it might have been. However, it still provided a necessary insight into what actions the government might aim to take to address the issues facing America’s elderly population. In addition to making a larger request for gross dollar funding for the HUD compared to the previous administration, the White House has declared some of its housing priorities.
These included an expansion in the availability of affordable housing and a new, higher level of investment in the HOME Investment Partnerships program, designed to build affordable housing in vulnerable communities. The finally released 2022 budget proposal found that the FHA’s HECM program was to operate at a credit subsidy level that generates more revenue for the federal government than it would pay in claims for HECM’s volume of business. the year, marking a substantial improvement in the overall position of the HECM portfolio and confidence in its solvency on the part of the HUD and the White House. This ended up being reflected in the 2021 Mutual Mortgage Insurance Fund (MMI) report.
- HUD Secretary and AARP CEO address aging in place and housing issues for older people (August 25)
HUD Secretary Marcia Fudge spoke to AARP CEO Jo Ann Jenkins about the state of senior housing and aging in place, marking the first major public comment regarding people aged done by the secretary since she was sworn in earlier that year. Among the topics discussed, Fudge and Jenkins discussed the preferences of many older people to age in place; why community living environments have become less important in the landscape of retirement homes in recent years; as well as legal realities at the local, state and federal levels which sometimes act as barriers to the expansion of senior housing.
- Origins: The “Slumdog Millionaire” of Reverse Mortgage Inflows (April 20)
In a throwback article on “Origins” tracing the entries of reverse mortgage professionals into space, RMD spoke with Omar Ennabe, co-founder of Orange, Calif., Ennkar, who cited a popular movie to help describe how he got into the reverse mortgage business.
Blockbuster film by director Danny Boyle in 2008 Slumdog Millionaire tells how an 18-year-old from Mumbai found himself in a popular game show that would change his life forever. The way the movie is structured gives a very holistic perspective on the events that lead the main character into a unique new situation, and Ennabe feels a certain synergy with that character’s story in terms of how he entered the story. reverse mortgage industry.
- Liberty’s parent company Ocwen / PHH purchases RMS service platform (June 18)Ocwen Financial Services, parent company of the top 10 Liberty Reverse Mortgage reverse mortgage lenders, has announced that its wholly owned subsidiary PHH Mortgage Corporation has acquired the operations, employees and assets of Reverse Mortgage Solutions (RMS) from its former owner, Mortgage Assets Management, SARL (MAM). PHH will also acquire all of the outstanding interests in RMS real estate business, REO Management Solutions, LLC (“REO”).
The deal was struck a few months later, making Liberty an end-to-end reverse mortgage service provider.
- AAG Moves to New HQ and Adopts Hybrid Workforce Model (June 8)American Advisors Group (AAG) announced that it has completed the move of its corporate headquarters to a new location in Irvine, Calif., Expanding its footprint in the city’s Irvine Towers complex while consolidating its overall geographic footprint in its local community in order to reflect a new hybrid model of the workforce.
Overall, as the company has expanded its presence in the office complex, the transition to a hybrid working model has had a demonstrable impact on the work / life balance of the company’s employees, and is expected to continue. translate into a favorable development for the workforce of the company according to the executives who spoke with RMD.