Russell Korte

From: Sent: To: Subject: Attachments: Paul Noring Tuesday, November 15, 2011 9:32 AM Russell Korte FW: Qs Exist Whether HUD Would Approve of F's on RM's Fore Failure to Pay Taxes/Insurance Picture (Device Independent Bitmap) 1.jpg

2of13
From: Hirsch, Frank [mailto:Frank.Hirsch@alston.com] Sent: Wednesday, November 09, 2011 5:11 PM To: Paul Noring; Chris Sicuranza Cc: Doherty, John Subject: Qs Exist Whether HUD Would Approve of F's on RM's Fore Failure to Pay Taxes/Insurance

HUD Reverse Mortgage Foreclosures: Will They or Wont They?

March 22nd, 2010 | by Neil Morse Published in FHA, News, Reverse Mortgage | 16 Comments Reports have circulated that HUD has given lenders approval to foreclose on seniors whose properties have gone into technical or other default, with specific instructions coming sometime this spring. We are aware of HUDs decision to allow the foreclosures, one prominent originator told RMD, after much speculative discussion among reverse mortgage professionals at a recent industry conclave. There is broad agreement that such foreclosures typically for failure to pay tax and insurance bills would bring much negative and unwanted scrutiny not only upon individual companies but the industry as a whole. It is a sensitive matter that is being discussed by a working group of servicers and HUD, said a high-level industry figure. Meanwhile, a HUD spokesman tells RMD there has been no official agency pronouncement on the subject, adding: We can assure you that it is now and has always been FHAs goal to keep seniors in their homes. No one wants to foreclose on a senior, said Sherry Apanay, senior vice-president, Generation Mortgage Company, repeating HUDs official position. However, servicers are now in a position where [other] options are no longer available. But, she quickly asks: How many seniors has a reverse mortgage helped save from a tax sale or foreclosure? I hope we see some balanced reporting on the subject, she concludes. Another possible indicator of a coming policy shift on foreclosures is word that counseling agencies are already creating resources for seniors who may ultimately require alternate, affordable rental housing. Representatives of one, major counseling group could not be reached for further comment. Written by Neil Morse Note: a previous version of this article read that HUD has made the decision to not allow servicers to add to the borrowers balance for unpaid taxes or insurance. This has not been decided, we apologize for the confusion. We are still investigating and will post another update.

Sign up to receive free updates like this by email or subscribe by RSS feed. Thanks for reading!
PrintThisPost RelatedPosts

NewPolicyonForeclosuresandDefaultsIntendedtobePreventivesaysFHA
1

HUDFailstoTrackAlmost13,000DefaultedHECMLoanssaysOIGReport HUDProvides$1BillionofEmergencyLoanstoHomeowners,T&IDefaultSolution?

******************************************************* IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS and other taxing authorities, we inform you that any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed on any taxpayer or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. ______________________________________________________ NOTICE: This e-mail message and all attachments transmitted with it may contain legally privileged and confidential information intended solely for the use of the addressee. If the reader of this message is not the intended recipient, you are hereby notified that any reading, dissemination, distribution, copying, or other use of this message or its attachments is strictly prohibited. If you have received this message in error, please notify the sender immediately by telephone (404881-7000) or by electronic mail (postmaster@alston.com), and delete this message and all copies and backups thereof. Thank you.