Effective 11/24/08, all new loan submissions must be accompanied by the HECM Anti-Churning Disclosure and show an increase in the Principal Limit of at least five (5) times the cost of the new loan

Two New Reverse Loan Products
We are pleased to introduce two new products for reverse mortgage loans that are available today:
•
Home Equity Conversion Mortgage (HECM) Fixed Rate
This is an FHA-insured Reverse mortgage program with a fixed rate, rather than an adjustable rate.
•
Home Equity Conversion Mortgage (HECM) Monthly LIBOR ARM
This is an adjustable rate product based on the LIBOR (London Interbank Offered Rate) index. Wells Fargo Wholesale Lending will continue to offer the HECM CMT ARM products.

LIBOR—MONTHLY ADJUSTING HECM

I encourage you to read the letter thoroughly. Specifics about property flipping and seasoning requirements are outlined in the letter.

Senior Lending Network Spokesperson Robert Wagner

Recent news from the Senior Lending Network states:

Effective Wednesday, October 29, 2008, we will need to temporarily suspend all new applications for our proprietary products (the jumbo Equity Plus Advantage and the Simple60) for the next 60 days. Therefore, we will no longer accept any new proprietary product submissions. We apologize for the short notice and hope to bring the products back to the market shortly.

On the other hand there was some good news:

Effective Wednesday, October 29th, 2008, we have reduced our Fixed HECM rate to 5.81% and enhanced our correspondent fee!

Additionally, we have improved our LIBOR and CMT pricing on certain servicing tiers for all loans closing between October 29, 2008 and December 19, 2008.

Keep your seat belts fastened!

]]> http://www.reversemortgageconcepts.com/2008/10/28/another-jumbo-bites-the-dust/feed/ http://www.reversemortgageconcepts.com/2008/10/19/jb-nutter-offer-cmt-175-50/ http://www.reversemortgageconcepts.com/2008/10/19/jb-nutter-offer-cmt-175-50/#comments Sun, 19 Oct 2008 15:54:13 +0000 admin http://www.reversemortgageconcepts.com/?p=106

CMT–MONTHLY ADJUSTING HECM

Click the link to read all current and future FHA Mortgagee Letters. Some of the more pertinent information can be found for Home Equity Conversion Mortgages here.

It amazes me that mortgage companies are continuing the assault on consumers with the newest trick of the trade, loan modification. In the last few days I have been innundated with calls from mortgage companies looking to modify loans of my existing customers for a fee. This is like credit repair, with a little knowledge, you can do it yourself for FREE. So why do these unscrupulous types feel they can scalp a little more from the system? It’s simple, they don’t have the morals, talent or desire to make a decent living in this new environment, granted it is less lucrative and harder to succeed and have found another get rich quick scheme, charging anywhere between $500 and $3500 to shuffle the paperwork through. Make no mistake, the amount of work it takes to modify a loan is no where near the same as a loan refinance. There is no appraisal and little to no documentation required, so it is basically an application. Tell your clients they can request loan modification from their lender, directly, without a middleman and without any additional fees.

The FHA’s share of the mortgage market soared to 23 percent in July, compared with a market share of just 3 percent for all of 2007. At the current pace, FHA is on track to account for about 30 percent of all new mortgages made by the end of this year. (Source: Inside Mortgage Finance).