ReJUNEvenating
Sunday, 31 May 2009 16:00
There is nothing better to recharge and invigorate our motivation and focus than a vacation. With the summer months soon upon us, before we hit the beaches, board that cruise liner, or hike to that summit top, take a moment and review, renew, and resurface some of those “will get to” items you have been “post-it noting” for the past few months. Quality time spent before you go will compliment your charged up return to get back to business!
Have you updated your quality control policy?
Mortgagee Letter 09-11 paved the way for HECM Purchase transactions. Time to dust off that QC program and update your review procedures for this new transaction. Have you provided sufficient testing strength for the specific forms, prohibitions, contract and processing requirements?
While you are digging around, is there a new form, process or activity which needs to be updated in your policy regarding declining market values, increased property flipping or borrower eligibility requirements?
Is your counseling procedure and disclosure updated?
Lenders are required to provide every client with a list of no fewer than ten (10) HUD-approved counseling agencies that can provide HECM counseling, five of which must be in the local area and/or state of the prospective HECM borrower with at least one agency located within a reasonable driving distance for the purpose of face-to-face counseling. The lender must provide a list of HUD-approved counseling agencies in the prospective borrower’s geographic area so that he/she can choose and receive face-to-face counseling. The other five agencies must be:
National Foundation for Credit Counseling (NFCC) – 1-866-698-6322
Money Management International (MMI) – 1-877-908-2227 •
Consumer Credit Counseling Service of Atlanta - (CCCS of • Atlanta) – 1-800-251-2227
AARP –1-800-209-8085 •
National Council on Aging (NCOA) A toll-free number will be • available on HUD’s website at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof18.cfm
These national intermediaries and multi-state organizations have exam-qualified counselors who can provide telephonic counseling to clients nationwide.
A great idea for a book marker….
Take a diversion from that thick novel you intend to pack and slide a copy of Mortgagee Letter 09-16, Manufactured Housing Policy Guidance – Property and Underwriting Eligibility into the cover. It is hot off the presses and needs your review.
The manufactured and modular housing property types are one of the most confusing aspects of the HECM transaction.
This Mortgagee Letter provides guidance on manufactured housing eligibility requirements for Federal Housing Administration (FHA) mortgage insurance under Title II of the National Housing Act. Changes to manufactured housing requirements for new and existing construction were made by the Housing and Economic Recovery Act of 2008 (Public Law 110-289, approved July 30, 2008) (HERA). This mortgagee letter addresses those changes that can be implemented immediately.
Are your state/licensing authority disclosures current?
Many HECM Lenders provide complete application package systems for your use – however, many of these packages may not be state specific or include your required state or licensing authority mandated consumer disclosures. When is the last time you visited your HECM application kit to make sure all required disclosures are included?
Have you reviewed your advertising and marketing materials?
Many times we pull from other sources or create on the fly marketing or advertising pieces under time pressure. Have you gone back to check for compliance on these items – appropriate licensing information, required disclosure language and notations.
What is the status of your lead generation list?
When is the last time you checked if your lead generation phone list was scrubbed with the Do Not Call Registry? If you are purchasing leads have you checked how these leads are scrubbed prior to your use?
Counseling Certificate/Casefile Quickcheck….
Is your processing area checking for the completeness of the counseling certificate, getting the original, and not ordering the FHA casefile prior to the certificate issuance and execution?
How’s your education calendar?
One of the best ways we keep ourselves current and knowledgeable, is to network with our peers (or commiserate as some would say). Check the calendar now for late summer and fall education and training classes to keep yourself current.
Renew your referral sources…
There are many differing thoughts on the seasonality or cyclicality of the reverse mortgage market. The referral sources on your list may benefit from a quick note of your brief lack of availability (a great extra touch point) or you may also want to take the opportunity to reach out to some additional new referral sources which may be looking to add information to their resources as their business reacts to the summer slow down.
Programs, pricing, margins keep changing…
Who is your back-up while you are gone? Do your customers know how to reach you for information. How will a significant program, rate or margin change impact your customers?
Whatever your strategy to get out the door and on the vacation, remember your checklist is waiting for you upon your return and there will probably be a few additions. The ability to robustly multi-task is probably what causes us to need that vacation.
One final thought, Murphy’s law would probably say that the first inquiry you will address upon your return is for a manufactured home in a condominium association! In other words, 12 pages from Mr. Montgomery or War and Peace - safe travels.
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