Loan Think

Some recent developments will more than likely put reverse mortgages in a favorable light once again. The announcement of the extension of the lending limit of $625,500 for Federal Housing Administration Home Equity Conversion Mortgages will allow seniors with higher home values to continue to benefit the reverse mortgage programs is the first.

Foreclosure-gate has caught the national media's attention, but not only that, apparently a documentary filmmaker based in the New York area is working on a film about the foreclosure mess, starring Litton Loan Servicing of Texas. I talked to the director the other day and he seemed a little confused about the difference between 'servicing' and 'subservicing' but I think I straightened him out.

To say that the image of the mortgage originator has taken a beating over the last few years is an understatement. There have been a number of attempts to combat that perception from the inside of the industry.

On Sept. 29, Lawrence William Dunning, 78 of Highland Beach, Fla., was sentenced to 24 months in federal prison and ordered to pay restitution of $2,889,492 followed by three years of supervised release for mail fraud. Additionally, three individuals have been sentenced for their roles in the multi-million-dollar Ponzi scheme or other related offenses, and two more individuals await sentencing.

THE BIG PICTURE: As the annual convention of the Mortgage Bankers Association approaches the industry, once again finds itself at a crossroad. Just when it appeared that housing/mortgages had turned the corner, the “foreclosure-gate” scandal erupted, putting lenders and servicers back in the public eye.

The Friday before a three-day holiday weekend is supposed to be quiet when it comes to major news, especially with Congress back home, trying to show its worth to voters. But not so this Friday: about an hour ago Bank of America declared a foreclosure 'sale' moratorium in all 50 states and new reports are suggesting that the Mortgage Electronic Registration System (know to most of the mortgage industry as MERS) is right in the thick of this crisis.

Everyone always asks, “When will this change?”But it is the wrong question to ask. The correct question is: “When will I change?”The good news: You’re in control. To me, this is very good news. At least it’s up to me and I won’t be waiting around for somebody else to find the time to help me.

GMAC Mortgage was slammed (sued) by the Ohio Attorney General on Wednesday for engaging in fraudulent foreclosures. But that's not how the company sees it. Here's the firm's full statement for those of you who missed it: "There was nothing fraudulent or deceitful about GMAC Mortgage's practices.

What if you had a real, honest to goodness reason to join (attend) networking groups? I know, I know. Networking can be fun. It can also be a pain in the butt. It cuts into family activities. You have time constraints.

I'm starting to hear plenty of rumblings from mortgage professionals who are pointing the finger at GMAC Mortgage for causing 'Foreclosure-gate.' It sort of reminds me of high school soccer practice when the coach threatens to make the entire team do laps if there's any more goofing off.