Wells Fargo has announced that it is closing its wholesale reverse mortgage business in two weeks. "This move allows us to focus on forward mortgages and our other products and programs," says Kathleen Vaughan, executive vice president, in a statement to its reverse mortgage brokers. "We will accept reverse mortgage applications through close of business on Friday, March 18, and the wholesale reverse pipeline must fund by Saturday, April 30."
Wells Fargo is the nation's largest retail reverse mortgage originator, and this aspect of its business will remain in place. The San Francisco-based institution is the second major lender to wind down its reverse mortgage operations - Bank of America announced last month that it was shutting down its reverse mortgage activities.
SOURCE: Wells Fargo
Showing posts with label Reverse Mortgages. Show all posts
Showing posts with label Reverse Mortgages. Show all posts
Tuesday, March 8, 2011
Monday, August 30, 2010
FRB Proposes Significant Changes to Reverse Mtg Disclosures and Ads
The Federal Reserve Board recently proposed significant changes to reverse mortgage advertisements and disclosures.
The Federal Register notice for the proposed rule is available at:
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20100816e1.pdf
These proposed rules would:
• Impose rules for reverse mortgage advertising to ensure advertisements contain accurate and balanced information.
• Change the disclosures consumers receive for reverse mortgages, including: (a) at application, creditors must provide a new, two-page disclosure which highlights in simple language the basic features and risks of reverse mortgages; (b) within three days after receiving the consumer’s application, creditors must provide transaction-specific disclosures that reflect the actual terms of the reverse mortgage being offered, which must be presented in a tabular format; (c) at least three days before closing the loan, creditors must provide final disclosures in the same format, to facilitate comparison with the earlier disclosures; and (d) creditors also must ensure that their advertisements for reverse mortgages are accurate and balanced.
• Prohibit certain unfair practices in the sale of financial products with reverse mortgages, such as: (a) prohibiting creditors from conditioning a reverse mortgage on the consumer's purchase of another financial or insurance product; (b) requiring that a consumer receive counseling about reverse mortgages before a creditor can impose nonrefundable fees for a reverse mortgage or close the loan; and (c) prohibiting creditors from steering consumers to specific reverse mortgage counselors or compensating counselors or counseling agencies.
The comment period ends 90 days after publication of the proposal in the Federal Register, which is expected shortly.
The Federal Register notice for the proposed rule is available at:
http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20100816e1.pdf
These proposed rules would:
• Impose rules for reverse mortgage advertising to ensure advertisements contain accurate and balanced information.
• Change the disclosures consumers receive for reverse mortgages, including: (a) at application, creditors must provide a new, two-page disclosure which highlights in simple language the basic features and risks of reverse mortgages; (b) within three days after receiving the consumer’s application, creditors must provide transaction-specific disclosures that reflect the actual terms of the reverse mortgage being offered, which must be presented in a tabular format; (c) at least three days before closing the loan, creditors must provide final disclosures in the same format, to facilitate comparison with the earlier disclosures; and (d) creditors also must ensure that their advertisements for reverse mortgages are accurate and balanced.
• Prohibit certain unfair practices in the sale of financial products with reverse mortgages, such as: (a) prohibiting creditors from conditioning a reverse mortgage on the consumer's purchase of another financial or insurance product; (b) requiring that a consumer receive counseling about reverse mortgages before a creditor can impose nonrefundable fees for a reverse mortgage or close the loan; and (c) prohibiting creditors from steering consumers to specific reverse mortgage counselors or compensating counselors or counseling agencies.
The comment period ends 90 days after publication of the proposal in the Federal Register, which is expected shortly.
Subscribe to:
Posts (Atom)
Posts
