HUD’s Inspector General says HUD’s oversight of FHA-insured reverse mortgages is generally adequate with the exception of 4 reverse mortgage loans reviewed.
One deficiency found that the reverse mortgage lender used the wrong interest rate when determining the initial principal limit for the reverse mortgage.
The reverse mortgage lender used the interest rate in from an expired lock-in agreement, instead of determining whether there should have been any adjustments to the interest rate.
The error resulted in the lender using the incorrect interest rate of 6.09%, rather than the 6.661% interest rate that was in effect at the time of the closing.
Using the wrong interest rate added $11,742.00 to the borrower’s net principal limit.
Other items found included reverse mortgages whose lenders included fees in the borrowers' closing costs that were not reasonable or customary.
Borrowers were charged $75 for negative endorsement and $250 for reverse mortgage endorsement fees.
To get a free CD on reverse mortgages, please go here right now.
Sincerely, your friend,
Scott Tucker
One deficiency found that the reverse mortgage lender used the wrong interest rate when determining the initial principal limit for the reverse mortgage.
The reverse mortgage lender used the interest rate in from an expired lock-in agreement, instead of determining whether there should have been any adjustments to the interest rate.
The error resulted in the lender using the incorrect interest rate of 6.09%, rather than the 6.661% interest rate that was in effect at the time of the closing.
Using the wrong interest rate added $11,742.00 to the borrower’s net principal limit.
Other items found included reverse mortgages whose lenders included fees in the borrowers' closing costs that were not reasonable or customary.
Borrowers were charged $75 for negative endorsement and $250 for reverse mortgage endorsement fees.
To get a free CD on reverse mortgages, please go here right now.
Sincerely, your friend,
Scott Tucker
P.S.: To get a free CD on reverse mortgages, please go here right now.
