Reverse mortgage loose equipment challenges
The first question that this part of the conversation started was more general in nature. But the panel quickly jumped on problems with which they are dealing with assessments as an important obstacle in the closing process.
Second reviews
In September 2018, the Federal Housing Administration (FHA) announced a new requirement for HECM lenders who resulted in some loan applications that require a second assessment. The rule was implemented with the aim of losing losses for the MMI Fund (Mutual MortGage Insurance (MMI). It came into force for all case numbers assigned from October of that year.
Opinions among reverse mortgage professionals about the second assessment requirement have varied over the years. Some continue to call it the biggest problem with which they are confronted in their company, while others say they have adapted and adapted.
But in the panel in Irvine, second assessments were immediately cited by Lisa Moriello van van lazily as an obstacle to taking out a loan.
She also mentioned the reconsideration of the value (ROV) process as a problem, which can lead to strange requests for the customers themselves.
“I literally just let an investor come back to me, and [they] My 80-year-old customer asked to offer a 12-month history of condominium sales in the area and how they increased, “explained Moriello.
“I don’t even have a subscription to that, so how do you expect a customer to do it? How do we alleviate that risk? I don’t really have an answer for you.”
Possible bias, preparation
Ernie Severerson of Summerlin Financial Inc. Cited Appraisal Bias as a problem. He suggested that appraisers can view a real estate differently if they know that the assessment has been requested for a reverse mortgage attraction.
“I know that is a big subject, but they have to look at the terms of seniors,” said Severerson. “And the fact that we have the AMC is a great step, but an appraiser should not know that this is an inverted mortgage before they become [to the property]. And unfortunately they can say that they are not biased or something else, but it is all risk reduction. “
Tom O’Donoghue from Reverse loans now suggested that it is a good idea to document the experiences that have separately and customers with certain appraisers, where the values are determined and the experiences that customers have with an appraiser.
O’donoghue also advises his customers to tell him who their appraiser is. He then checks notes to see if there have been problems with interactions from the past.
Moriello added that customers can indicate that they have had a bad interaction with an appraiser. If they seem stressed, or if they feel that they have been spoken in a condescending way, it can be a sign of a bad experience.
Christina damn Hika, a loan input that attended the event, shared advice about recording a video to give customers an idea of what to expect from an assessment. This allows them to feel more confident and be prepared as soon as the appraiser appears at their door.
Hikes Hika and other industry professionals have previously recommended video tools such as Loom, which can be shared with the borrower and any trusted advisers to guide them through the details of a reverse mortgage.
