Magazine article Mortgage Banking

Mortgage Cadence Enables Lenders to Add Financial Assessment to Reverse Underwriting Process

Magazine article Mortgage Banking

Mortgage Cadence Enables Lenders to Add Financial Assessment to Reverse Underwriting Process

Article excerpt

Mortgage Cadence LLC, Denver, a provider of enterprise lending solutions (ELS), default servicing technology and document services for the financial services industry, simplifies changes to the Home Equity Conversion Mortgage (HECM) program using Mortgage Cadence's ACE[R] Rules Engine's advanced rules-based configuration. As financial assessments of all reverse-mortgage borrowers take hold throughout the reverse industry, more lenders are turning to Mortgage Cadence's advanced technology to easily implement the necessary changes, according to the company.

Over the past year, more reverse-mortgage borrowers than ever before have struggled to meet the tax and insurance obligations set forth in their HECM loan. Because of this, the Federal Housing Administration issued a HECM Program Update on Oct. 5, 2011, summarizing the adjustments it has made to ensure the sustain-ability of the program. One noteworthy statement included in the update indicated that the Department of Housing and Urban Development (HUD) does not prohibit additional financial capacity and credit assessment tests on HECM applicants.

In addition, on Oct. 27, 2011, the National Reverse Mortgage Lenders Association (NRMLA), Washington, D.C., issued its guidance on limited underwriting for property charges, which reviews an applicant's capacity and willingness to pay property charges. …

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