Reverse mortgages

If the Federal Housing Administration's rulemaking on home equity conversion mortgages were to go into effect as written, borrower contributions would be reduced by thousands of dollars.

The loan, dubbed Homesafe Second, will allow borrowers 55 and older to tap their home equity via a second mortgage.

While the company's long-term issuer default rating has slipped a little, affiliates of Blackstone that have a higher one back the reverse mortgage player.

More than one securitization per month resulting from multiple disbursements of a single loan will be permitted beginning Oct. 1, the guarantor said.

The company, which recently divested in the forward mortgage business and sold off its title services unit, reported a $222.5 million loss.

A second quarter profit followed two fiscal periods in the red, but the firm had to overcome a $33 million negative mortgage-servicing rights valuation.

Under new terms of its program, the Aloha State will also extend assistance to reverse mortgage holders as well as some borrowers with nondelinquent loans.

The firm's reverse mortgage arm combined with the newly acquired American Advisors Group will make the parent company the largest player in that lending space, executives said.

This deal will allow PHH Mortgage to substantially increase the number of reverse MSRs it handles on an outsourced basis.

Mission-driven entities will have priority on 50% of loan pools secured by Home Equity Conversion Mortgages.