If the largest servicer of HECMs couldn’t handle the financial burden posed by mandatory buyouts of the loans, what hope is there for others? FHA is being urged to make changes to HECM policies. (Includes data chart.)

In late December, Ginnie seized HECM servicing from Reverse Mortgage Funding, which had recently filed for bankruptcy. Other HECM servicers are also facing liquidity pressure, according to industry analysts.

The top three HECM lenders through the first nine months of 2022: American Advisors Group, Mutual of Omaha Mortgage and Finance of America...

Year-to-date, home equity conversion mortgage volume is up a dramatic 49.9% compared to last year. But volume dropped sequentially for the first time in seven quarters. (Includes three data charts.)

Senate passes VA home loan benefit legislation; FHA allows HECM property charges repayment plan; FHA lenders can continue face-to-face interview alternatives; VA releases new loan review API; and more.

FHA announces 2023 loan limits; VA circular describes interplay of conforming loan limits and VA entitlement; Ginnie makes VA lending recommendations; Ginnie offers new flexibilities for issuer financial eligibility requirements; FHA extends temporary loss-mitigation waivers; HUD IG issues reverse mortgage scam warning.

All 10 of the top management challenges facing the Department of Housing and Urban Development last year, including mitigating counterparty risk to mortgage programs, remain, the HUD Inspector General reported last week. 

Leaving the choice of index to the noteholder could lead to volatile payment amounts and default for the borrower as well as problems for FHA’s Mutual Mortgage Insurance Fund, the group says. 

Although FHA is required to maintain a minimum 2% capital ratio, there’s nothing in its Congressional mandate that speaks to a maximum.

The Department of Housing and Urban Development has issued a 90-day moratorium on foreclosures of FHA mortgages, among other measures.