"Industry participants view the RFI as a rare opportunity to rewrite the playbook. Its depth and scope signal a desire for a comprehensive reassessment of the programs and how they compare to the proprietary reverse mortgage market. It's a good indication that HUD and Ginnie Mae are paying very close attention to these critically important programs, given the aging population of our country, said Steve Irwin, president of the National Reverse Mortgage Lenders Association (NMRLA)."
"One would be the ground-level fixes for those who are working day to day with HECM loans and HMBS have always wanted: improving the claims process, fixing loan-level or eligibility issues that create operational headaches, Jensen said. The second category is the macro-level fixes that the industry has grappled with and the biggest concern remains HMBS buyout obligations and the liquidity pressures it places on issuers."
HUD, FHA, and Ginnie Mae issued an RFI requesting input on potential changes to HECM and HMBS programs. Responses concentrate on mortgage insurance premiums and liquidity challenges tied to HMBS buyout obligations. Stakeholders request streamlined claims processes, loan-level and eligibility fixes, and risk-based pricing for mortgage insurance. Issuers face liquidity pressures from HMBS buyout rules that can force asset purchases or cash demands. Proposed remedies include enhancements to securitization structures, improved issuer protections and financial safeguards, and alignment of HECM features with proprietary reverse mortgage options to increase efficiency and reduce operational burdens.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]