Hey, Members A Roundup of Issues and News for NRMLA Members By Darryl Hicks
IN THIS ISSUE, we highlight news from the second quar- ter of 2024, with links to more information. If you have any questions, email me at dhicks@dworbell.com . • Ginnie Mae published a term sheet June 27, 2024, for its proposed HECM Mortgage-Backed Securities 2.0 program, which seeks to address liquidity con- straints in the reverse mortgage sector by providing a new capital markets execution for older vintage HECMs. Comments were collected from stake- holders, including NRMLA, through July 31, 2024. ( https://bit.ly/3zo0g6i ) • Vanguard released the 23rd edition of its How America Saves report, which found that employees are contributing record amounts into their 401(k)s: 7.4 percent in 2023—almost 12 percent if you include employer contributions. ( https://bit.ly/3XJ09wh ) • The Federal Housing Administration (FHA) pub- lished a draft Mortgagee Letter in mid-June 2024 to update its defect taxonomy guidelines to include fraud or material misrepresentation involving a third- party originator (TPO) as a Tier 1 severity defect. ( https://bit.ly/4ckMn7p ) • The Consumer Financial Protection Bureau issued an order on June 18, 2024, to permanently ban Sutherland Global, its subsidiaries Sutherland Government Solutions and Sutherland Mortgage Services, and NOVAD Management Consulting from servicing reverse mortgages and to pay restitu- tion to reverse mortgage borrowers. ( https://bit.ly/45G1d65 ) • Adults ages 65 to 74 hold an average of $134,950 in debt, while individuals 75 and older hold an average of $94,620, according to Federal Reserve data ana- lyzed by MarketWatch. ( https://bit.ly/4bpq6nV ) • The U.S. Department of Health and Human Services, through its Administration for Community
Living (ACL), released a report in May 2024 on the coordinated effort to create national recommenda- tions for advancing healthy aging and age-friendly communities. ( https://bit.ly/45Fb8Jf ) • ACL released its 2023 Profile of Older Americans in late May 2024, illustrating the shifting demographics of Americans 65 and older. ( https://bit.ly/4eFveXQ ) • FHA published Mortgagee Letter 2024-10 on May 23, 2024, to implement new procedures for reporting cyberattacks. ( https://bit.ly/4cBiuj5 ) • The U.S. Department of Housing and Urban Development published a revised copy of the Single- Family Handbook 4000.1 on May 20, 2024, with changes to the HECM section. ( https://bit.ly/4chrjPq ) • Florida Gov. Ron DeSantis signed House Bill 7073 in May 2024 that amended existing law by basing the state’s documentary stamp tax on the principal limit of a reverse mortgage instead of the maximum claim amount. The new law, which took effect on July 1, 2024, could save reverse mortgage borrowers thousands in closing costs. ( https://bit.ly/3VLhxxE ) • FHA announced on April 26, 2024, in Mortgagee Letter 2024-06 that it would disallow mortgagees and TPOs from making interested party contribu- tions in HECM for Purchase transactions or allow premium pricing to qualify as an eligible funding source to meet the borrower’s minimum required investment. ( https://bit.ly/3zj3BDR ) • Massachusetts Gov. Maura Healy signed a supple- mental budget bill on April 30, 2024, with provi- sions to authorize reverse mortgage counseling via synchronous real-time videoconference or telephone permanently. ( https://bit.ly/3L2DFPh )
Darryl Hicks is NRMLA’s vice president of communications.
8 REVERSE MORTGAGE / SEPTEMBER-OCTOBER 2024
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