2021 has come and gone now, and with it another extraordinary year for the reverse mortgage industry, the United States and the greater world. While 2020 was dominated by the emergence of the COVID-19 pandemic and the adjustment of businesses with it, there were also notable national events that would shape the reverse mortgage industry, not least the transition to a new industry. The presidential administration is prioritizing the new policy that comes with it. The reverse mortgage program has not been without changing political realities.
By contrast, 2021 was the year of adjustment to the new normal. The pandemic is still ongoing, but the development of various treatments unavailable in the previous year has given the country – and indeed, the reverse mortgage industry – new tools to adapt when things start to look differently. Reverse mortgage lenders have introduced a series of new products and initiatives designed to expand the base of serviceable borrowers, while at the same time the industry has relied more on existing customers than at any time in the last 12 years at least.
However, these big events don’t always translate to “most read stories” when it comes to RMD. Sometimes they do, but you might be surprised to see stories that caught your readers’ attention. To that end, here are the top 10 reading stories published on RMD in 2021.
- White House announces extension of moratorium on foreclosures, HUD delays service reviews (24 June)
In a sign of some of the policy changes seen throughout the year, the Joe Biden administration in June announced another delay to foreclosures caused by the pandemic that began the previous year under the Donald Trump administration. Earlier in the year, the White House also announced a series of revisions to the Single Family Mortgage Service’s policies — including a new defect rating — that will be pushed into March 2022. It remains to be seen whether the new guidelines will take effect however, as it is. Determined, as one of the new and more virulent variants of COVID-19, it is severely damaging the American health system.
- The reverse mortgage lending limit increased to $970,000 in 2022 following FHFA limits (30 November)
The issuance of a new lending limit for the Real Estate Equity Conversion Program (HECM) has always been of great interest among the RMD audience, but the way in which the new limit has been implemented has certainly been unconventional. In an unexpected move in late November, the Federal Housing Administration (FHA) raised the lending limit for the HECM program on the same day the FHFA announced that it would increase matching loan limits on mortgages to be taken out by the National Mortgage Union. real estate (FNMA, or “Fannie Mae”) and the Federal Mortgage and Mortgage Corporation (FHLMC, or “Freddie Mac”).
On top of this unusual cadence of announcements, the lending limit itself now stands at $970.800 for 2022, increasing at a rapid pace in conjunction with high levels of home price increases (HPA). With a reverse mortgage lending limit of nearly $1 million, some in the industry have speculated for RMD that the property reverse mortgage market could be negatively affected, but such an occurrence remains to be seen.
- Find the 4 Reverse Mortgage Industry Trends in 2021 (January 3)In a look at potential moves lenders could take in 2021 as well as an assessment of this year’s political landscape, the focus was all on technology: making things easier for borrowers in terms of dealing with their loans and with their providers. RMD also speculated at the time that higher lending limits could somehow interact with the property market, but that preparedness may be more appropriate for 2022 considering another notable increase in the maximum claim amount HECM (MCA).
Certainly there were a lot of differences to be seen in 2021 when it came to the position of the federal government. HUD has made it clear that it wants to focus on addressing potential home ownership inequalities, while the Consumer Financial Protection Bureau (CFPB) has seen a very active interim director make way for a new, full-time leader with a long-standing regulatory reputation. However, as expected, no transformative changes were found to the HECM policy in 2021.
- FHA Extends Eviction Moratorium, But Foreclosures Are Resuming On Schedule (July 30)Relief specifically targeted to homeowners became a natural concern over the course of the pandemic’s first year, so when the FHA announced it was extending a moratorium on evictions specifically related to foreclosures through the end of September 2021, it got a lot of attention. Perhaps most surprising to some, the FHA specifically said that the previously extended mortgage moratorium would expire on schedule at the end of July, and would not be renewed.
Part of the reason behind this according to the agency was to target relief more specifically at those families in extreme distress, that is, those for whom foreclosure had led to eviction. This freeze ended at the end of September, but some countries decided to extend their similar restrictions.
- FHA Officially Cuts LIBOR Rate for Adjustable Reverse Mortgages, Adopts SOFR (March 11)
In long-coming news, the FHA announced in March that the HECM program will move from the beleaguered London Interbank Offered Rate (LIBOR) to adjustable-rate HECM, and will instead adopt the Safe Funding Rate (SOFR) as it was The previously stated hope of the industry. This was made official with the publication of the Letter of Mortgage (ML) 2021-08.
Steve Irwin, president of the National Mortgage Lenders Association (NRMLA) told Time. “This policy will also continue to enhance the integrity and safety of the HECM program, which has always been a key consideration in the development of HECM policies.”
- White House reveals 2022 budget priorities, including housing and seniors (April 11)
It’s always an intriguing development for the industry to see how the new political leadership will craft HECM, and although the Biden administration’s budget proposal didn’t spell it out as much as it could provide a necessary insight into actions the government could take aimed at addressing the issues facing the larger population We are not in America. In addition to submitting a larger raw dollar funding request for HUD than the previous administration, the White House has announced some of its housing priorities.
This included expanding 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 eventually released 2022 budget proposal revealed that the FHA’s HECM program at its credit support level is expected to generate more receipts for the federal government than it will pay in claims for this year’s HECM business history, indicating a fundamental improvement in the situation. year for HECM’s portfolio and confidence in its solvency from HUD and the White House. This is reflected in the 2021 Mortgage Mutual Insurance Fund’s report.
- HUD Secretary, AARP CEO Addresses Aging in Place and Seniors’ Housing Concerns (25 August)
HUD Secretary Marcia Fudge sat down for a conversation with AARP CEO Jo Ann Jenkins about the housing situation for seniors and aging in place, marking the first major public comments relevant to senior officials made by the secretary since he was sworn in earlier that year. Among the topics discussed, Fudge and Jenkins touched upon the preferences of many older adults for age in place; Why community living quarters have become less prominent in the elderly living scene in recent years; In addition to legal realities at the local, state, and federal levels that sometimes act as obstacles to the expansion of senior housing.
- Assets: “Slumdog Millionaire” for Reverse Mortgage Entries (April 20)
In a returning feature called “Origins” that tracks reverse mortgage professionals’ entrances into the space, RMD sat down with Omar Annabi, co-founder of California-based Ennkar, who cited a popular movie to help describe how he got into the reverse mortgage business. .
Director Danny Boyle 2008 film the homeless milionaire It tells the story of how an 18-year-old from Mumbai found himself on a popular game show that would change his life forever. The way the film is structured gives a very comprehensive perspective of the events that led the main character into a unique new setting, and Burgundy feels a degree of synergy with that character’s story in terms of the way he got into the reverse mortgage business.
- Liberty parent Ocwen / PHH buys an RMS service platform (June 18)Ocwen Financial Services, the parent company of the top 10 largest reverse mortgage lender Liberty Reverse Mortgage, announces that its wholly owned PHH Mortgage Corporation has acquired the operations, employees and assets of Reverse Mortgage Solutions (RMS) from its previous owner, Mortgage Assets Management, LLC (MAM). ). PHH will also acquire all outstanding equity interests in RMS-owned real estate company, REO Management Solutions, LLC (“REO”).
The deal closed a few months later, making Liberty an end-to-end reverse mortgage services provider.
- AAG moves to new headquarters, adopts mixed workforce model (June 8)American Advisors Group (AAG) has announced that it has completed the relocation of its headquarters to a new location in Irvine, California, expanding its presence in the city’s Irvine Towers complex while strengthening its overall geographic footprint in its local community to reflect the new hybrid. workforce model.
Overall, as the company has expanded its presence in the office complex, the transition to a hybrid business model has had a clear impact on the work-life balance of the company’s employees, and is expected to translate into a positive development of the company’s workforce according to executives who spoke with RMD.