Quicken Loan has announced a new reverse mortgage alternative that offers more flexibility and features than FHA’s Home Equity Conversion Mortgage product. Simply called HELO, the Home Equity Loan Optimizer is available through Quicken’s reverse-mortgage retailer, One Reverse Mortgage. It will soon be available through the wholesale broker channel as well, according to Gregg Smith, president and CEO of One Reverse Mortgage. HELO’s best feature is its higher loan limit of up to $4 million, which particularly benefits equity-rich seniors, compared to the maximum claim amount for an insured HECM, which is $679,650, or 150 percent above the Freddie Mac conforming loan limit. Unlike HECMs, HELO allows seller concessions as well as debt consolidation to be paid off at closing, which is prohibited in traditional HECMs. To qualify, borrowers must have a minimum credit score ...
Fannie Mae Updates HECM Servicing Manual. Fannie Mae has updated its Reverse Mortgage Loan Servicing Manual to include changes related to real estate-owned hazard-insurance requirements. The policy change applies only to Home Equity Conversion Mortgage REO. The revised manual now requires that, for HECM loans, the servicer must place a property insurance policy on the acquired property in accordance with Department of Housing and Urban Development guidelines. Coverage must be up to the HUD foreclosure appraisal amount or the deed-in-lieu property valuation amount. Should the servicer be unable to obtain a HUD foreclosure appraisal or deed-in-lieu property valuation, it must place coverage in accordance with HUD guidelines and up to the unpaid principal balance amount. Fannie encouraged immediate servicer implementation of the policy. However, the ...
Fannie Mae is in the hunt for a new CEO to replace current chief Timothy Mayopoulos, but finding just the right candidate could prove difficult because of a $600,000 salary cap placed on the position back in 2015 by Congress.
Fannie Mae and Freddie Mac shareholders are working to make sure their cases against the government don’t get shoved aside after a string of adverse court decisions. Plaintiffs are looking to tweak their complaint to include a challenge based on a ruling in another case that the Federal Housing Finance Agency structure is unconstitutional.
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