Relevant:
- The FHA Non-Approved Broker Debate Part II: End of the HECM Advisor Program
- HUD Takes the Axe to FHA Direct Endorsements
- FHA Report: Value of HECM Program Hit Hard by Home Price Projections
- HUD Lowers Principal Limit Factors for FHA Reverse Mortgage Program
- Appropriation for reverse mortgage program unlikely says HUD official
2008-09-19 — ml-implode.com
The termination of the FHA Advisor program was a direct result of Section 2122 of the Housing and Economic Recovery Act of 2008 (HERA). Section 2122 of HERA requires that all parties involved in the origination of reverse mortgages (also known as HECMs) must be approved by the Secretary of the Department of Housing and Urban Development.
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Comments:
Cobrafixer at 10:45 2008-09-20 said:
WOW, what a concept!!! If you're not FHA approved you CAN"T do an FHA loan and get paid on it! Now if FHA would get out of their offices and go after all the people out their doing FHA loans who aren't even licensed I think it might be a good start to cleaning up our industry. I know of an owner who had his State license pulled and his corporate approval revoked, so you think wow, ok they've got this guy out of the business, WRONG, he just openes up under a CFL with the same company name!! Let me know if I'm missing something... PermalinkDo_the_math at 00:21 2008-09-21 said:
I agree that non approved brokers should not be processing FHA loans and that HUD should be hiring more auditors to go after the companies that violate HUD guidelines. However, there is a difference between representing a borrower and processing a loan. The current system does not recognize borrower agents or borrower representation. As a result, program abuse is prevalent with few participants looking out for the best interests of the borrowers and HUD. HUD needs to change the way that mortgage brokers participate, do away with YSP abuses, and increase processing requirements and penalties for mortgage fraud. A broker that represents a borrower, which the borrower has a right to hire whomever they wish to represent them whether they are FHA approved or not, should not be held to the same approval standards as a lenders agent when they do not process the loan. Mortgage brokers who REPRESENT the lender and PROCESS the loan should be held to a higher standard. The fact that lenders even allow brokers to process loans AND earn up to 5% of the loan amount is a recipe for disaster. Its a classic conflict of interest. Permalinkadd a comment | go to forum thread
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