Boston Estate Planning and Probate Lawyer & Attorney : Gosselin & Associates Law Firm : Serving Boston, Winchester, Hingham, Wellesley, Manchester

I am cautiously optimistic as I pore through the text of the new FHA Housing Modernization Law (HR 3221). The Reverse Mortgage industry is about to become a main stream financial services industry. HUD, Congress, President Bush and I say so. Regulation can be a good thing for a nascent industry, the public will see it as our comeuppance, state regulators will know that we are here to stay and because of the relative complexity of the regulation the mainstream mortgage industry should finally see us as highly trained, ethical and committed professionals. This new found regulation comes with an opportunity to take the lead from here to become a self-regulating industry. It is time to bring professional certification, reverse mortgage originator licensing and public relations outreach like we have never seen before. Now is the time. Seniors need to have hope for financial stability in a time of increasing inflation and abysmal real estate values. A reverse mortgage should be considered by seniors just as they consider selling real estate, taking out home equity line forward mortgages, moving in with adult children, sinking into retirement account principal, etc. This "varsity" consideration will come so long as we as an industry stay focused on our ultimate goal of legitimacy. HR 3221 is the beginning of our future. Let's work together now. No reason to be competitors - the market is bigger than the service providers currently in place to provide services. Join hands. Hang on tight. The ride just started! Law for Life is committed to serving our reverse mortgage industry clients in compliance matters, sales strategy, management consulting and title services on a national basis.

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I was wondering when the foolish greedy paper pushers in the title insurance industry would start following their mortgage company brethren to the poor house. All Reverse Transactions announced today that they lack sufficient capital to stay in business. No surprise there. A company based on pushing closings through robotically and stringing together underpaid mobile notaries is not a sustainable network. Reverse Mortgage closings should be conducted by specially trained professionals. Experienced escrow officers, real estate attorneys, elder law attorneys make up the largest group of folks that should be closing reverse mortgage transactions. These people can appreciate the solemnity that's needed as we deal with our seniors last assets. Reverse closings should be slow. They should be sober events. Recently I was asked to work on a consulting project for a major national lender that involved the issues around competency at the closing table. How can lenders prevent incompetent borrowers from slipping through closings? The lender suggested a checklist for the closer to conduct and if the borrower couldn't meet a test then the closing would be suspended until further inquiry was made. Well, under the All Reverse Transactions model this is an absurdity. Flip-flop wearing, third job, 'are you done yet' closers getting a couple hundred dollars (including gas at $4 a gallon) have little incentive to call off a closing and jeopardize their fee - not to mention a complete lack of experience in evaluating borrower or client competency. Law for Life is a law firm and title company (Title for Life - www.TitleforLife.com) that has more experience handling elder clients, reverse mortgage transactions and the complexities of reverse mortgage regulation (including HR 3221 FHA Housing Modernization Law compliance) than any other law firm in the country. We are licensed to close loans directly in several northeastern states and through our longstanding title underwriter relationships are able to properly serve every state in the country with the appropriate closer. Give us a call at 877-E-Closing for more information. We are far more than just another lawyer in Massachusetts - but a true reverse mortgage trailblazer.

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This just in from Darryl Hicks, NRMLA's Communication VP and all round Master of Ceremonies:

Senate Passes Housing Bill

President Expected to Sign Immediately

Earlier today, the Senate passed HR 3221 by a vote of 72-13. We expect the President to sign the bill into law immediately.

Our most current interpretation is that the loan limit will go to $417,000 once HUD issues a Mortgagee Letter, and that the high cost area adjustments to a max of $625,500 will take effect on January 1.

In addition to raising loan limits, HR 3221 includes:

Home Purchase product authority.

Co-op product provisions.

Origination fees of 2% on the initial $200,000 in maximum claim amount and 1% on the balance thereafter with a cap of $6,000

Prohibitions on requiring the purchase of annuities and other financial products.

Restrictions around cross selling financial products.

Requirements on counseling protocols, funding and practices that promote independence and quality in counseling.

NRMLA will issue a more detailed memo next week. In the meantime, rejoice.

Darryl Hicks, VP, Communications

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