Htown Harry
Thinks s/he gets paid by the post
- Joined
- May 13, 2007
- Messages
- 1,525
I have seen comments on the board that went something like "...and if things got really bad, I could get a reverse mortgage...".
Reading this story, the comments and a few related stories on the web site, I believe it is time to rethink whether that will be a viable "Plan B" (or C or D or E) down the road.
Wells Fargo, Largest Reverse Mortgage Lender to Exit Retail Business [Update] | Reverse Mortgage Daily
This comment on the linked article, from a Wells employee, gives some insight into why these banks are pulling the plug, rather than sell off the units (T&I = taxes and insurance):
Reading this story, the comments and a few related stories on the web site, I believe it is time to rethink whether that will be a viable "Plan B" (or C or D or E) down the road.
Wells Fargo, Largest Reverse Mortgage Lender to Exit Retail Business [Update] | Reverse Mortgage Daily
This comment on the linked article, from a Wells employee, gives some insight into why these banks are pulling the plug, rather than sell off the units (T&I = taxes and insurance):
"...Wells had over 2500 loans in T&I default which we had been trying to "work through" to avoid foreclosure. However, HUD told us to pull the plug and we will have to do so. The reputational cost to Wells Fargo will be very high with the negative publicity of seniors being evicted by sheriffs while the TV cameras roll, being shown on the evening news with a newscaster in front of a Wells Fargo Bank branch. Painful.
Coupled with the the inability of HUD to develop T&I risk analysis tools on the front end, Wells Fargo management saw this as a program that did not sustain homeownership and increased risk to us and the communities we serve."
Coupled with the the inability of HUD to develop T&I risk analysis tools on the front end, Wells Fargo management saw this as a program that did not sustain homeownership and increased risk to us and the communities we serve."