pennsylvania DEPARTMENT OF BANKING Testimony of before the March 26, :OO a.m. Room G-50 Irvis Office Building
|
|
- Maurice Dwain Rodgers
- 8 years ago
- Views:
Transcription
1 pennsylvania DEPARTMENT OF BANKING MARKET SQUARE PLAZA 1 17 N SECOND STREET, SUITE 1300 I HARRISBURG, PA , state pa.us Testimony of Paul H. Wentzel, Jr. before the Pennsylvania House of Representatives Aging & Older Adult Services Committee 10:OO a.m. Room G-50 Irvis Office Building Good morning Chairman Mundy and Chairman Hennessey. Thank you for inviting the Department of Banking here today to discuss the increasingly important topic of reverse mortgage loans. Secretary of Banking Steve Kaplan regrets that he cannot be here this morning due to another commitment. However, the Department is in the process of developing legislation to address regulatory and consumer protection issues relating to reverse mortgage lending. When the legislation is ready, the Secretary would be pleased to meet with this committee to discuss the proposed legislation and receive your comments and suggestions. As you know, a reverse mortgage loan is a type of home equity loan that allows the borrower to convert some of the equity in their home into tax-free cash while continuing to live in the home. This appears to be desirable social policy. The Pennsylvania 2020 Vision Report issued in 2008 under the leadership of the Department of Aging cited a National Center for Seniors' Housing Research study which indicated that 80% of people age 55 or older want to "age in place" by remaining in their homes and communities. Reverse mortgage loans have been cited as an option for achieving that goal. Testimony of Paul H. Wentzel, lr. Before the House Aging & Older Adult Services Committee Page 1 of 5
2 However, reverse mortgage loans are not appropriate for everybody and since the vast majority of reverse mortgage loans are marketed to consumers 62 years of age or older - a uniquely vulnerable market - we believe that additional consumer protections and regulatory safeguards may need to be developed and amended into Pennsylvania mortgage law. For this reason, the Department is studying reverse mortgage loan products thoroughly and reviewing other states' statutes on the subject. Although state legislation and regulation cannot address all reverse mortgage loans at this time, we believe that we should regulate that portion of the industry operating in Pennsylvania to the extent that we can and protect Pennsylvania consumers from fraud and abuse. At the Department of Banking, we have been all about mortgages for the past several years, primarily addressing foreclosure and abusive lending issues. We have grown the Department by increasing our licensing, compliance and non-depository examinations staff, dramatically changing our licensing procedures, and creating a new investigations unit that seeks out abusive lending. A new area of concern is reverse mortgage lending. Reverse mortgage loans are now generating a great deal of attention from state mortgage regulators as the product becomes more widely available. This afternoon, the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators (state regulator groups) are sponsoring a Webinar for the various banking departments around the country to discuss regulatory and consumer protection issues relating to reverse mortgage loans and what actions states should be taking. Reverse Mortclaqe Loans As you know, the primary benefit of a reverse mortgage loan is that the borrower may continue to live in their home as long as they desire, even after they have exhausted their equity. Typically, the borrower can choose to receive monthly payments, a lump sum payment, a line of credit or a combination. The amount that may be borrowed is generally based on the borrower's age (life expectancy), the amount of equity in the home and the interest rate charged by the lender. The maximum loan amount generally ranges from 50% to 75% of the home's fair market value. The loan is usually due with interest when the borrower moves, sells, reaches the end of a predetermined loan plan or passes away. Upon the death of the borrower, heirs are required to pay off the loan either through a conventional refinancing of the mortgage or sale of the property. A typical reverse mortgage loan contains up front fees and costs which consumers should review very carefully. These fees can amount to several thousand dollars and will significantly increase the amount owed on the loan. Typical fees include an appraisal fee; an origination fee; mortgage insurance premiums, which protect both the borrower and the lender; closing costs; and servicing fees. Testimony of Paul H. Wentzel, lr. ~egislative Liaison & Executive Assistant to the Secretary of Banking Before the House Aglng & Older Adult Services Committee March 26,2009 Page 2 of 5
3 Disadvantages of the reverse mortgage product include: reduction in the equity of the borrower's property, it may not be consistent with a desire to maximize the estate for heirs, and closing costs are based on the home's value rather than the amount borrowed; therefore, short-term or small loans are not advisable under this product. The Pennsvlvania Requlatorv Environment As a financial institution regulatory agency, the Department of Banking has supervisory, regulatory and examination authority over approximately 240 state-chartered depository institutions including banks, savings banks, savings and loan associations, credit unions and non-depository trust companies. These institutions operate under the Banking Code, the Savings Association Code and the Credit Union Code. There is little or no language in these laws and the regulations promulgated under them that relates to reverse mortgage loans. We believe that reverse mortgage loans made and held by these state-chartered institutions are minimal in number. There are, however, state-chartered banks and national banks operating in the Commonwealth that broker reverse mortgage loans to large, out-of-state banks such as Bank of America, Wells Fargo, Met Life Bank and JP Morgan Chase Bank. These large institutions fall outside the purview of the Department of Banking and current state law. The Department also has authority over approximately 13,000 non-depository entities such as mortgage lenders, mortgage brokers, consumer discount companies, car dealers that make auto loans and financial entities that purchase those loans, check cashers, money transmitters (money order companies), pawnbrokers and rep0 men - collector repossessors. These entities are licensed and regulated under various state statutes and regulations. Reverse mortgage loans are made in Pennsylvania by licensed mortgage lenders or brokered by licensed mortgage brokers. Some offer multiple mortgage products including reverse mortgage loans. Others may specialize entirely in reverse mortgage loan products. The Department began licensing, regulating and examining non-depository mortgage lenders and brokers in 1990, but until recently had authority only over the mortgage companies. Last July, the General Assembly approved the Department's five-bill mortgage reform package which made significant positive changes in the licensure, supervision, regulation and enforcement of Pennsylvania's mortgage industry. The "heart" of the five-bill package, the Mortgage Act, requires licensure and regulation of all mortgage loan originators - those individuals employed by the mortgage lenders, brokers and consumer discount companies that have direct contact with the consumer. The originator licensing requirement applies to lender and broker companies that make all types of mortgage loans - first, second (home equity) and reverse mortgage loans. Testimony of Paul H. Wentzel, Jr. Before the House Aging &Older Adult Services Committee Page 3 of 5
4 Under the new statute, mortgage originators are required to be employees of lender and broker licensees. The licensee is required to directly supervise, control and maintain responsibility for the acts and omissions of the mortgage or~ginator. Originators are required to register on the recently developed Nationwide Mortgage Licensing System which was designed to streamline the licensing process, improve supervision and increase transparency in the mortgage industry on a nationwide basis. Originators, company owners and management undergo state and federal criminal history background checks and are required to possess the financial responsibility, character, reputation, integrity and general fitness to operate or be employed at a mortgage company. The Department is required to deny licensure to any originator applicant that has been convicted of a felony during the past seven years. An applicant that has at any time been convicted of a felony involving fraud, dishonesty, breach of trust or money laundering is disqualified from licensure. Mortgage originators are also required to complete a minimum of 12 hours of prequalification instruction and testing relating to the first and second mortgage business, stahe mortgage statutes and regulations, and federal mortgage lending and consumer protection laws and regulations. Originators are also required to complete six hours of continuing education annually after securing licensure. These prequalifying education and continuing education requirements are to be increased to 20 hours and eight hours, respectively, under legislation the Department will soon be proposing. Provisions in the new Mortgage Act also increased penalties from $2,000 per violation to $10,000 per violation. Pennsylvania's mortgage licensing, regulatory and enforcement statutes have been significantly strengthened under the legislation enacted in July of 2008 and will be enhanced further by legislation the Department will be pursuing later this year. Leclislative Conce~ts Many Pennsylvanians, including many seniors, have secured home equity mortgage loans to pay for healthcare, property taxes and everyday living expenses. Some borrowers made poor decisions because they did not understand the home equity loan product offered to them or the process involved. Other borrowers took out loans that they were incapable of repaying - these circumstances often resulted in foreclosures. Under a regulation promulgated by the Department last year, which took effect on March 2oth, Pennsylvania mortgage lenders and brokers are now required to perform an analysis that considers and documents the borrower's income and other debt in determining the borrower's ability to repay the loan prior to consummation. This has eliminated the so called "stated income" and no doc mortgage loans. Such a standard would not apply to reverse mortgage loans, because the borrower is not required to repay a reverse mortgage loan other than through refinancing of the mortgage or sale of the property. The Department is currently studying a concept that Testimonv of Paul H. Wentzel. Jr. ~egislative Liaison & ~xecuti"e Assistant to the Secretary of Banking Before the House Aging & Older Adult Services Committee Page 4 of 5
5 would require a reverse mortgage lender to perform an analysis to determine whether the loan meets the needs of the borrower. Departmental examiners would regularly review the lender's records to make sure that the analysis was performed and that the loan should have been made. The Department is also considering a concept that would require reverse mortgage lenders to maintain strength and solvency in order to ensure that the lender is able to make the disbursements of funds contracted for with borrowers. This would require greater capital, liquidity and funding sources than are currently mandated under the Mortgage Act. Also under consideration is a requirement that loan originators making reverse mortgage loans be individually bonded in amounts up to $25,000 to $50,000 so that consumers could be compensated in the event of an abusive lending practice by an originator. Additionally, if taxes and insurance payments are not escrowed as part of the reverse mortgage loan, licensees should be restricted from foreclosing on a borrower who fails to make tax and insurance payments and encouraged to work with the borrower to have taxes and insurance paid. Borrowers should receive a one-page, plain language disclosure explaining the important components of the reverse mortgage loan including all fees and charges. Also, borrowers that apply for reverse mortgage loans that are not insured by the Federal Housing Administration (FHA) should be required to attend FHA approved counseling prior to obtaining a reverse mortgage loan. The most widely available reverse mortgage loan has been the Home Equity Conversion Mortgage - or HECM - that was created by the U.S. Department of Housing and Urban Development and is insured by the Federal Housing Adm~nistration, The HECM may be the only reverse mortgage loan available today, because there is currently no secondary market for uninsured reverse mortgage loans in the stressed mortgage market. The HECM's appear to be good, consumer-friendly loans. The legislative concepts discussed should apply primarily to non-fha insured loans, if they return to the market when the economy improves. Testimony of Paul H. Wentzel, Jr. Before the House Aging &Older Adult Services Committee Page 5 of 5
Nationwide Mortgage Licensing System #222955
Nationwide Mortgage Licensing System #222955 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications,
More informationReverse Mortgage Presented by Ian MacGillivray, NMLS #638502 American Capital Corporation, NMLS #264422 Phone: 505-690-1089 Website:
Reverse Mortgage American Capital Corporation, Phone: 505-690-1089 Website: http://mortgagepartners-santafe.com Contents I. What Is a Reverse Mortgage? II. Benefits and Typical Uses III. Is the Home at
More informationWhat You Need to Know Before Considering a. Reverse Mortgage. Fair Housing Legal Support Center & Clinic
What You Need to Know Before Considering a Reverse Mortgage Fair Housing Legal Support Center & Clinic Reverse Mortgage Pros and Cons Pros A reverse mortgage may allow senior homeowners to age in place
More informationReverse Mortgage Is it right for you?
Reverse Mortgage Is it right for you? Reverse Mortgages are being hyped as a tremendous tool for retirement income. This type of mortgage uses part of the equity in a home as collateral. A Reverse Mortgage,
More informationGuide to Reverse Mortgages
Guide to Reverse Mortgages Prepared by Steve Juetten, CFP Juetten Personal Financial Planning, LLC. www.finpath.com 425-373-9393 Disclaimer: the information in this report was prepared from reliable sources;
More informationSeniors Reverse Mortgage Fact File and Answers to Frequently Asked Questions
Seniors Reverse Mortgage Fact File and Answers to Frequently Asked Questions A public information service from Access Reverse Mortgage 1-888-340-0305 2014 Access Reverse Mortgage Corp.. All rights reserved.
More informationComment Call (10-1) This proposal can be found at: http://www.ffiec.gov/guidance/reversemortgageguidance12-17-09.pdf.
Comment Call (10-1) To: From: All Credit Union CEOs Veronica Madsen Counsel Date: January 15, 2010 RE: Reverse Mortgages Introduction The Federal Financial Institutions Examination Council (FFIEC), on
More information12.19.8.2 SCOPE: All mortgage loan companies licensed by the state of New Mexico. [12.19.8.2 NMAC - Rp, 12 NMAC 19.2.8.2, 12/15/08; A, 08/31/09]
TITLE 12 CHAPTER 19 PART 8 TRADE, COMMERCE AND BANKING MORTGAGE LENDING MORTGAGE LOAN COMPANY REQUIREMENTS 12.19.8.1 ISSUING AGENCY: Financial Institutions Division of the Regulation and Licensing Department.
More informationA GUIDE TO. reverse mortgages. Live the retirement you dreamed
A GUIDE TO reverse mortgages Live the retirement you dreamed Guide Content 14What Is A Reverse Mortgage? 24How Do I Qualify? 34 What Can A Reverse Mortgage Be Used For? 44How Much Money Could I Qualify
More informationSecure your financial future with a Reverse Mortgage today!
Steve Rivas President Call me with any questions always here to help. (888) 944-6262 steve@wphomeloans.com www.wphomeloans.com Secure your financial future with a Reverse Mortgage today! 1 What Are Your
More informationCh. 46 PROPER CONDUCT OF LENDING 10 46.1 CHAPTER 46. PROPER CONDUCT OF LENDING AND BROKERING IN THE MORTGAGE LOAN BUSINESS
Ch. 46 PROPER CONDUCT OF LENDING 10 46.1 CHAPTER 46. PROPER CONDUCT OF LENDING AND BROKERING IN THE MORTGAGE LOAN BUSINESS Sec. 46.1. Definitions. 46.2. Proper conduct of lending and brokering in the mortgage
More informationSource: Genworth Financial Home Equity Access, Inc. Reverse Mortgage Study- 10/2008 2
REVERSE MORTGAGES 1 Source: Genworth Financial Home Equity Access, Inc. Reverse Mortgage Study- 10/2008 2 Benefits of a Reverse Mortgage Senior will receive money without having to leave their home No
More informationEnrolled Copy S.B. 120
Enrolled Copy S.B. 120 1 REGULATION OF REVERSE MORTGAGES 2 2015 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Wayne A. Harper 5 House Sponsor: Ken Ivory 6 7 LONG TITLE 8 General Description: 9 This
More informationFrequently Asked Questions for Residential Mortgage Originator and Servicer
What are the requirements to be licensed as a residential mortgage originator under Chapter 58? Significant changes were made to Chapter 58 by the 2007 legislation. Effective August 1, 2007, a mortgage
More informationThe Facts. About Reverse Mortgages. without the hype
The Facts About Reverse Mortgages without the hype A reverse mortgage... Will it help me? Is it a good fit for my needs? Will I own my home? Do I qualify? Am I protected? These may be some of the thoughts
More informationREFERENCE ACTION ANALYST STAFF DIRECTOR 1) Insurance, Business & Financial Affairs Policy Committee 12 Y, 1 N, As CS Marra Cooper SUMMARY ANALYSIS
HOUSE OF REPRESENTATIVES STAFF ANALYSIS BILL #: CS/HB 845 Reverse Mortgage Loans to Senior Individuals SPONSOR(S): Insurance, Business & Financial Affairs Policy Committee, Legg TIED BILLS: IDEN./SIM.
More informationThe Facts About Reverse Mortgages. without the hype
The Facts About Reverse Mortgages without the hype A reverse mortgage... Will it help me? Is it a good fit for my needs? Will I own my home? Do I qualify? Am I protected? These may be some of the thoughts
More informationJune 10, 2010. 2010 Legislative Amendments to the Indiana Code Relating to First Lien Mortgage Act (the Act )
June 10, 2010 2010 Legislative Amendments to the Indiana Code Relating to First Lien Mortgage Act (the Act ) Effective July 1, 2010 (except as otherwise indicated) Questions, Answers, and Administrative
More informationSecure your financial future with a Reverse Mortgage today!
Secure your financial future with a Reverse Mortgage today! 1 What Are Your Retirement Goals? Are you on track to meet your needs and satisfy your wants, now and in the future? Pay off your existing mortgage*
More informationMORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.
MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default
More informationReverse. Mortgage. Presentation
Reverse Mortgage Presentation Copyright 2004, 2005, 2006 by National Reverse Mortgage Education Center All rights reserved Overview Enables homeowners age 62 and older to turn a portion of their home s
More informationHOUSE BILL 2242 AN ACT AMENDING TITLE 6, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 16; RELATING TO REVERSE MORTGAGES.
Senate Engrossed House Bill State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session HOUSE BILL AN ACT AMENDING TITLE, ARIZONA REVISED STATUTES, BY ADDING CHAPTER ; RELATING
More informationHOUSE OF REPRESENTATIVES COMMONWEALTH OF PENNSYLVANIA * * * * * * * * Reverse Mortgages & Long-Term Care Insurance * * * * * * * *
HOUSE OF REPRESENTATIVES COMMONWEALTH OF PENNSYLVANIA Page 1 * * * * * * * * Reverse Mortgages & Long-Term Care Insurance * * * * * * * * House Aging and Older Adult Services Committee BEFORE: Irvis Office
More informationAssembly Bill No. 344 CHAPTER 733
Assembly Bill No. 344 CHAPTER 733 An act to amend Sections 4970, 4973, 4974, 4975, 4977, 4978, 4978.6, 4979, and 4979.7 of the Financial Code, as added by Assembly Bill 489 of the 2001-02 Regular Session,
More informationFINAL BILL REPORT EHB 1311
FINAL BILL REPORT C 149 L 09 Synopsis as Enacted Brief Description: Regulating reverse mortgage lending practices. Sponsors: Representatives Kirby, Bailey, Morrell, Sullivan, Kenney, Simpson and Nelson;
More informationHow To Get A Reverse Mortgage
Frequently Asked Questions 1. What is a reverse mortgage? 2. How does a reverse mortgage differ from a home equity loan? 3. What are the advantages of a reverse mortgage? 4. How much money can I get? 5.
More informationHow To Get A Home Equity Conversion Mortgage
The Facts About Reverse Mortgages without the hype A reverse mortgage... Will it help me? Is it a good fit for my needs? Will I own my home? Do I qualify? Am I protected? These may be some of the thoughts
More informationPut your home to work for you
Put your home to work for you Sara A. Cornwall 2507 Post Road, Southport CT 06890 Phone: 203-319-5014 Email: Sara.Cornwall@WellsFargo.com What is a reverse mortgage It s a home loan that enables you to
More informationGet the facts. What every homeowner who is at least 62 years of age should know about reverse mortgage loans
Get the facts What every homeowner who is at least 62 years of age should know about reverse mortgage loans Dino Guadagnino Reverse Area Sales Manager PHL Federal Reserve Meeting December 1, 2010 1 What
More informationSenior Concerns. Will you outlive your money?
NMLS #64997 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications, etc. Fixed income with
More informationUnderstanding Home Equity Conversion Mortgages
Understanding Home Equity Conversion Mortgages Discover how to Unlock the Equity in your Home Reverse Lending Experts What Are Your Financial Goals? Are you on track to meet your retirement needs and satisfy
More informationCommon Questions. How does the Reverse Mortgage process work? Education
Common Questions How does the Reverse Mortgage process work? Education Do your research. Read up on the process as much as you can. Talk to your local Better Business Bureau (BBB) and your local American
More informationThere are no asset or income limitations on borrowers receiving HUD's reverse mortgages.
DEPARTMENT OF HUD REVERSE MORTGAGE INFORMATION Homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage
More informationUSA Reverse. Learn the Facts about Reverse Mortgages. Danny Glover - Human Rights Activist
Learn the Facts about Reverse Mortgages Danny Glover - Human Rights Activist Single-purpose Reverse Mortgages Single-purpose reverse mortgages are the least expensive option. They re offered by some state
More informationCapital Choice Mortgage Solutions. Getting Started
Capital Choice Mortgage Solutions Our Philosophy: At Capital Choice Mortgage Solutions we try to do what's right for our clients one hundred percent of the time. We will keep you informed throughout the
More informationIs A Reverse Mortgage Right for You?
Is A Reverse Mortgage Right for You? NewRetirement s Guide to Reverse Mortgages www.newretirement.com (877) 394-1305 Table of Contents What is a Reverse Mortgage? Are You Eligible For a Reverse Mortgage?
More informationUnderstanding Home Equity Conversion Mortgages
Understanding Home Equity Conversion Mortgages Discover how to Unlock the Equity in your Home Stephen Gargano Manager NMLS # 64495 Reverse Mortgage Dept SEFCU MORTGAGE SERVICES 1131 Rte 55, Suite 4 Lagrangeville,
More informationJanuary 28, 2015 Kauffman Conference Center
January 28, 2015 Kauffman Conference Center Changing Housing Needs for Older Adults Reverse Mortgages: Opportunities and Challenges Pete Mendenhall, CRMP, CAPS North American Savings Bank Understanding
More informationRe: [Docket No. RIN 3084 AB18]; Mortgage Acts and Practices Advertising Rulemaking, Rule No. R011013
1400 16 th Street, NW Suite 420 Washington, DC 20036 Tel. 202.939.1760 Fax. 202.265.4435 November 15, 2010 Federal Trade Commission Office of the Secretary Room H 135 (Annex W) 600 Pennsylvania Avenue,
More informationHow To Stop Mortgage Fraud In Minster
OFFICE OF THE ATTORNEY GENERAL STATE OF MISSOURI Doug Ommen Consumer Protection Division Missouri s 2007 Mortgage Fraud Task Force Created in Department of Insurance, Financial Institutions and Professional
More informationEnhance Your Financial Security. With a Home Equity Conversion Mortgage
Enhance Your Financial Security With a Home Equity Conversion Mortgage 1 Call for Additional Information 925-258-0386 1 Unlock Your Home s Equity We understand that you want to transition easily into the
More informationTable of Contents Reverse Mortgage O verview... Reverse Mortgage K ey Questions... 5 Reverse Mortgage Pros and Cons... 7 Reverse Mortgage Borr
1 Table of Contents Reverse Mortgage Overview... Reverse Mortgage Key Questions... Reverse Mortgage Pros and Cons... Reverse Mortgage Borrower Qualification... Reverse Mortgage Key Items... Reverse Mortgage
More informationOffice of Financial Regulation. Alisa Goldberg Chief, Bureau of Registration Division of Securities
Office of Financial Regulation Alisa Goldberg Chief, Bureau of Registration Division of Securities 1 History The Office of Financial Regulation (OFR) was created in 203 by section 20.121(3), Florida Statutes,
More informationREFERENCE ACTION ANALYST STAFF DIRECTOR 1) Insurance, Business & Financial Affairs Policy Committee Marra Cooper SUMMARY ANALYSIS
HOUSE OF REPRESENTATIVES STAFF ANALYSIS BILL #: HB 845 Reverse Mortgage Loans to Senior Individuals SPONSOR(S): Legg TIED BILLS: IDEN./SIM. BILLS: REFERENCE ACTION ANALYST STAFF DIRECTOR 1) Insurance,
More informationThe Cost and Benefit of Reverse Mortgages
The Cost and Benefit of Reverse Mortgages Han B Kang Illinois State University ABSTRACT There has been a growing popularity of reverse mortgage among senior citizens who need cash. The loan allows homeowners
More informationCHAPTER 2011-71. Committee Substitute for Committee Substitute for Senate Bill No. 1316
CHAPTER 2011-71 Committee Substitute for Committee Substitute for Senate Bill No. 1316 An act relating to loan processing; amending s. 494.001, F.S.; creating and revising definitions; deleting a redundant
More informationRegulatory Newsletter
Regulatory Newsletter Volume 1, Issue 1 April 27, 2009 Charlie s Corner By Charlie Fields, Jr. Director Mortgage Examinations By Jeff Browning, Examination Supervisor Dear Licensee, I would like to welcome
More informationChapter 10 6/16/2010. Mortgage Types and Borrower Decisions: Overview Role of the secondary market. Mortgage types:
Mortgage Types and Borrower Decisions: Overview Role of the secondary market Chapter 10 Residential Mortgage Types and Borrower Decisions Mortgage types: Conventional mortgages FHA mortgages VA mortgages
More informationReverse Mortgage Information Guide
Reverse Mortgage Information Guide Table of Contents FHA Reverse Mortgages 3 Common Misconceptions about Reverse Mortgages 4 How the Program Works 4 Benefits of a HECM loan 4 HECM vs. Traditional Mortgage
More informationGENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1991 H 1 HOUSE BILL 22
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION H HOUSE BILL Short Title: Regulate Reverse Mortgages. (Public) Sponsors: Representatives Brubaker, Easterling, Hasty, Ligon, Lineberry, Privette, and Woodard.
More informationHELPING YOUR CLIENTS USE THEIR HOME TO STAY AT HOME REVERSE MORTGAGES AND ESTATE PLANNING
HELPING YOUR CLIENTS USE THEIR HOME TO STAY AT HOME REVERSE MORTGAGES AND ESTATE PLANNING Presented By Doni Dolfinger Reverse Mortgage Specialist UNDERSTANDING REVERSE MORTGAGES Your client s home is many
More informationTITLE 20. COMMERCE, FINANCIAL INSTITUTIONS, AND INSURANCE CHAPTER 4. DEPARTMENT OF FINANCIAL INSTITUTIONS ARTICLE 1. GENERAL
TITLE 20. COMMERCE, FINANCIAL INSTITUTIONS, AND INSURANCE CHAPTER 4. DEPARTMENT OF FINANCIAL INSTITUTIONS ARTICLE 1. GENERAL Section R20-4-102. Table A. Definitions Licensing Time-frames ARTICLE 9. MORTGAGE
More information1 MINNESOTA STATUTES 2015 47.58
1 MINNESOTA STATUTES 2015 47.58 47.58 REVERSE MORTGAGE LOANS. Subdivision 1. Definitions. For the purposes of this section, the terms defined in this subdivision have the meanings given them. (a) "Reverse
More informationDATES: Comments must be submitted on or before [INSERT DATE 60 DAYS AFTER PUBLICATION IN THE FEDERAL REGISTER].
This document is scheduled to be published in the Federal Register on 06/23/2015 and available online at http://federalregister.gov/a/2015-15412, and on FDsys.gov FEDERAL RESERVE SYSTEM Proposed Agency
More information9-Jul-08 State Responses to Housing Crisis: Legislative Solutions
9-Jul-08 State Responses to Housing Crisis: Legislative Solutions Arkansas 4/16/03 7/15/03 HB 2598 California 7/8/08 7/8/08 SB 1137 10/5/07 10/5/07 SB 223 10/5/07 SB 385 Enacts Arkansas Home Loan Protection
More informationOverview of Mortgage Lending
Chapter 1 Overview of Mortgage Lending 1 Chapter Objectives Identify historical events affecting today s mortgage industry. Contrast the primary mortgage market and secondary mortgage market. Identify
More information<Servicer Logo> Questions and Answers About Reverse Mortgages. If you have questions or need our help, call <8XX-XXX-XXXX>.
Questions and Answers , If you have questions or need our help, call . What is a reverse mortgage? A reverse mortgage is a loan
More informationDodd Frank Act Consumer Financial Protection Bureau Mortgage Lending
Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending A Briefing for the Texas House Investments and Financial Services Committee John C. Fleming Consumer Financial Protection Bureau (CFPB)
More informationReverse Mortgage Basics. Norma P. Garcia Senior Attorney Consumers Union May 28, 2012
Reverse Mortgage Basics Norma P. Garcia Senior Attorney Consumers Union May 28, 2012 What is a reverse mortgage? It s a loan against the equity in an elder s home Instead of making monthly payments to
More informationHOME OWNERSHIP EQUITY PROTECTION ACT OF 1994. Raymond Natter 1
HOME OWNERSHIP EQUITY PROTECTION ACT OF 1994 Raymond Natter 1 Recent Congressional attention to the problems of predatory mortgage lending has led for calls for the Federal Reserve Board to use its authority
More informationThank you and good morning. I appreciate the opportunity to speak with you today.
Thank you and good morning. I appreciate the opportunity to speak with you today. Thank you to Paul Horwitz for the invitation and to the Boston Alliance for Economic Inclusion for hosting today s event.
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse Mortgage
More informationCHAPTER 454M MORTGAGE SERVICERS
CHAPTER 454M MORTGAGE SERVICERS SECTION 454M-1 Definitions 454M-2 License required 454M-2.5 Unlicensed foreclosure actions voided 454M-3 Exemptions 454M-4 License; fees; renewals; voluntary surrender of
More informationMortgage Laws and Regulations-Georgia. Introduction. LegalEase was asked to review and summarize any legislation since January of 2007
Mortgage Laws and Regulations-Georgia Introduction 23400 Michigan Avenue, Suite 101 Dearborn, MI 48124 Tel: 1-(866) 534-6177 (toll-free) Fax: 1-(734) 943-6051 Email: contact@legaleasesolutions.com www.legaleasesolutions.com
More informationCounseling Kit Overview
Counseling Kit Overview For More Information: Contact your Reverse Mortgage Advisor This Counseling Kit has been assembled to assist you in preparing for your required HUD counseling session. The Counseling
More informationTESTIMONY OLIVER IRELAND
TESTIMONY OF OLIVER IRELAND BEFORE THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AND CONSUMER CREDIT OF THE UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES EXAMINING LEGISLATIVE PROPOSALS
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National
More informationTitle XIV - Mortgage Reform and Anti-Predatory Lending Act. Short title: "Mortgage Reform and Anti-Predatory Lending Act"
Title XIV - Mortgage Reform and Anti-Predatory Lending Act Short title: "Mortgage Reform and Anti-Predatory Lending Act" Subtitles A, B, C, and E are designated as Enumerated Consumer Law under the Bureau
More informationReverse Mortgages Overview
Reverse Mortgages Overview An Overview of Reverse Mortgages In 1987 President Ronald Reagan authorized the Department of Housing and Urban Development (HUD) to create the Home Equity Conversion Mortgage
More informationReverse Mortgages in Relocation Assistance
Controls Conference - Hyatt Regency Savannah, Georgia - April 14-18, 2013 Reverse Mortgages in Relocation Assistance Lisa Barnes SR/WA, R/W-RAC Reverse Mortgages 90 95% of reverse mortgages are originated
More informationSection 1715z-20. Insurance of home equity conversion mortgages for elderly homeowners 1
Section 1715z-20. Insurance of home equity conversion mortgages for elderly homeowners 1 (a) Purpose The purpose of this section is to authorize the Secretary to carry out a program of mortgage insurance
More informationReverse Mortgage Risks - Potential Risks For the Consumer
For Release Upon Delivery 9:00 a.m., June 29, 2009 Testimony of ANN F. JAEDICKE Deputy Comptroller for Compliance Policy Office of the Comptroller of the Currency Before the SPECIAL COMMITTEE ON AGING
More informationReverse Mortgages: Explained
Reverse Mortgages: Explained When To Recommend and When To Be Avoided Presented by Karl Parize Broker # 01364278 History of Reverse Mortgages During the 1970s, several private banks offered Reverse Mortgage
More informationDepartment of Legislative Services Maryland General Assembly 2010 Session
House Bill 799 Economic Matters Department of Legislative Services Maryland General Assembly 2010 Session FISCAL AND POLICY NOTE Revised (Delegate Kramer, et al.) Reverse Mortgage Homeowners Protection
More informationEnhance Your Financial Security. With a Home Equity Conversion Mortgage
Enhance Your Financial Security With a Home Equity Conversion Mortgage 1 Call for Additional Information 888.732.1005 1 Unlock Your Home s Equity We understand that you want to transition easily into the
More informationA Public Hearing. Mortgage Lender and Broker Amendment Act. of 2009
Government of the District of Columbia Department of Insurance, Securities and Banking Testimony of Thomas E. Hampton Commissioner A Public Hearing ON Mortgage Lender and Broker Amendment Act of 2009 Committee
More informationReverse Mortgages: Reversal of Fortune?
Reverse Mortgages: Reversal of Fortune? Certainly The Fonz would not lead us astray. Nor would Senator Fred Thompson. After all, he ran for President of the United States and played the President in several
More informationDefinitions. In some cases a survey rather than an ILC is required.
Definitions 1. What is the closing? The closing is a formal meeting at which both the buyer and seller meet to sign all the final documentation required for the buyer's mortgage loan. Once the closing
More informationChapter 30 Home Equity Conversion Mortgages. 47-30-103. Authorized lenders Designation Application.
Chapter 30 Home Equity Conversion Mortgages 47-30-101. Short title. 47-30-102. Definitions. 47-30-103. Authorized lenders Designation Application. 47-30-104. Compliance Noncomplying loans unenforceable
More informationextend certain foreclosure protections afforded under the Servicemember Civil Relief Act to servicemembers serving in harm s way.
FACT SHEET: President Obama Announces New Steps to Provide Housing Relief to Veterans and Servicemembers and Help More Responsible Homeowners Refinance In his State of the Union address, President Obama
More informationSUBCHAPTER 03K - REVERSE MORTGAGES SECTION.0100 - ADMINISTRATIVE
SUBCHAPTER 03K - REVERSE MORTGAGES SECTION.0100 - ADMINISTRATIVE 04 NCAC 03K.0101 DEFINITIONS; FILINGS (a) As used in this Subchapter, unless the context clearly requires otherwise: (1) Terms defined in
More information(No. 164) (Approved July 29, 2011) AN ACT
(S. B. 1823) (No. 164) (Approved July 29, 2011) AN ACT To create the Reverse Mortgage Consumer Protection Act ; to establish protections and guarantees in addition to those provided under the Federal Law
More informationAssumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.
MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that
More informationKey Points: Conventional Loans:
Key Points: Conventional Loans: Less regulation and more discretion than government loans. Can be cheaper than FHA and VA because FHA requires 2 mortgage insurances and VA requires VA funding fee. Sometimes
More informationMortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal
Mortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal Secure and Fair Enforcement for Mortgage Licensing Act Title V of P.L. 110-289, the Secure
More informationRemarks by. John C. Dugan. Comptroller of the Currency. Before the. American Bankers Association Regulatory Compliance Conference.
Remarks by John C. Dugan Comptroller of the Currency Before the American Bankers Association Regulatory Compliance Conference Orlando, Florida June 8, 2009 Consumer Protections for Reverse Mortgages I
More informationThis chapter shall be known and may be cited as the "Home Equity Conversion Mortgage Act."
Source: http://www.lexisnexis.com/hottopics/tncode/ 47-30-101. Short title. This chapter shall be known and may be cited as the "Home Equity Conversion Mortgage Act." HISTORY: Acts 1993, ch. 410, 2. 47-30-102.
More informationNEBRASKA MORTGAGE BANKER FREQUENTLY ASKED QUESTIONS
NEBRASKA MORTGAGE BANKER FREQUENTLY ASKED QUESTIONS Loan Originator Licensing Q. What are the requirements to obtain a mortgage loan originator license in Nebraska? A. In accordance with the requirements
More informationReverse Mortgage. Work With a Local Expert
Reverse Mortgage Work With a Local Expert I offer a variety of reverse mortgages (HECM FHA, Jumbo, Purchase and Fixed Rate) designed to eliminate current mortgage payments and give borrowers easier access
More informationhousing information www.housing-information.org Reverse Mortgages A project of Consumer Action
housing information www.housing-information.org Reverse Mortgages A project of Consumer Action One of the major benefits of buying a home is the opportunity to build equity, or ownership, in the property.
More informationSenate Bill 1149 Summary -- Prohibit Predatory Lending
MEMORANDUM TO: FROM: Hal D. Lingerfelt Commissioner of Banks L. McNeil Chestnut Assistant Attorney General DATE: August 25, 1999 RE: Senate Bill 1149 Summary -- Prohibit Predatory Lending I. Background
More informationHow To Get A Reverse Mortgage
Reverse Mortgage Credit Union Mortgage Association 9693-A Main Street Fairfax, VA 22031 Toll Free: (800) 231-8855 Ext. 128 Local: (703) 425-1204 Ext. 128 www.cumortgage.net Summary What is a Reverse Mortgage?
More informationU.S. Government Guaranteed HECM Reverse Mortgage Information Guide
To learn more please call our Reverse Mortgage Department at 302-283-4687 or toll free at 1-888-WSFSBANK (1-888-973-7226), or visit www.wsfsbank.com/reversemortgages. U.S. Government Guaranteed HECM Reverse
More information"Reverse Mortgages are a powerful tool to help eligible homeowners obtain
Dear Friend: Being a senior myself I am constantly looking for ways to improve my quality of life, have more liquid assets, reduce my cost of living and looking for ways to have passive income. My wife
More informationHow HECMs Work. Prepared by Genworth. Reverse Mortgages: A Financial Planning Tool
How HECMs Work Prepared by Genworth Reverse Mortgages: A Financial Planning Tool What is a HECM? A Home Equity Conversion Mortgage (HECM) is a FHA-insured non-recourse loan that allows homeowners, age
More informationCHAPTER 536 REGULATED LOANS
CHAPTER 536 REGULATED LOANS 536.1 Title license required. 536.2 Application fees. 536.3 Bond. 536.4 Grant or refusal of license. 536.5 License form posting. 536.6 Additional bond available assets. 536.7
More informationGENERAL ASSEMBLY OF NORTH CAROLINA 1991 SESSION CHAPTER 546 HOUSE BILL 22
GENERAL ASSEMBLY OF NORTH CAROLINA 1991 SESSION CHAPTER 546 HOUSE BILL 22 AN ACT TO REGULATE REVERSE MORTGAGES. The General Assembly of North Carolina enacts: Section 1. Chapter 53 of the General Statutes
More informationRULES OF THE TENNESSEE DEPARTMENT OF FINANCIAL INSTITUTIONS CHAPTER 0180-24 RULES PERTAINING TO HOME EQUITY CONVERSION MORTGAGES TABLE OF CONTENTS
RULES OF THE TENNESSEE DEPARTMENT OF FINANCIAL INSTITUTIONS CHAPTER 0180-24 RULES PERTAINING TO HOME EQUITY CONVERSION MORTGAGES TABLE OF CONTENTS 0180-24-.01. In General 0180-24-.02. Requirement of Designation
More informationWhite Paper: HB 631/SB 666 Loan Originators, Mortgage Brokers, & Mortgage Lenders
White Paper: HB 631/SB 666 Loan Originators, Mortgage Brokers, & Mortgage Lenders I. Overview The explosion in subprime lending was a major factor that led to the Great Recession from 2007 to 2009. The
More informationJust the FAQs: Answers to Common Questions About Reverse Mortgages. From the National Reverse Mortgage Lenders Association
Just the FAQs: Answers to Common Questions About Reverse Mortgages From the National Reverse Mortgage Lenders Association THE NATIONAL REVERSE MORTGAGE LENDERS ASSOCIATION The National Reverse Mortgage
More information