new application
The document, released Thursday on a court docket, shows RMF leaders looming over bankruptcy while other reverse mortgage industry players are reluctant to assume control of the entire loan portfolio.
Leaders appealed to Ginnie Mae, but Ginnie Mae initially refused to provide the relief the company sought. Ginnie Mae recommends RMF purchase loan portfolio from the following companies in January 2022 American Consulting Group (AAG) may lead to its financial instability.
Ginnie Mae understands that “the interest rate environment is not the only driver of RMF liquidity conditions,” then-Ginnie Mae President Alanna McCargo wrote on November 26, 2022 stated in a letter from RMF.
“RMF has agreed that it will address and fulfill its obligations across the entire portfolio, not just a subset of it. It is RMF’s responsibility to find an orderly solution to its upcoming procurement obligations. In the current circumstances, there is no government assistance package Can step in at any time and assume the issuer’s responsibilities.
In early December 2022, Ginnie Mae sent a letter to RMF stating that its failure to obtain bankruptcy authorization to fund borrower withdrawals constituted an immediate event of default, causing RMF to seek to transfer its portfolio to another lender.
road to capture
What followed was repeated disputes between Ginnie Mae, RMF creditors (including TCB) and other lenders, culminating in Ginnie Mae’s asset seizure in late December 2022. house lineA lengthy report in Reverse Mortgage Daily documented the circumstances leading up to RMF’s collapse.
Ginnie Mae finally took over the RMF service portfolio on or about December 20, 2022. Pool of Backed Securities (HMBS). This marks the first time a Ginnie Mae-insured HMBS issuer has defaulted in the program’s history.
Ginnie Mae subsequently detailed in its public budget request that the portfolio’s assumptions put a significant strain on its resources. Although Ginnie Mae has a large HMBS portfolio, it does not issue any HMBS pools.
Borrower withdrawal
Ginnie Mae also filed a separate administrative record in connection with the case, which included federal housing administration Similar records from the (FHA) show that HUD and FHA officials are processing inbound communications regarding borrowers whose planned and unplanned reverse mortgage payments have not yet been made.
Ultimately, the borrower’s problem was resolved when RMF obtained additional financing to fund these outstanding drawdowns. Funds have been transferred to the sub-service provider Celink, and then honor the borrower’s payments. TCB’s funding is at the heart of a dispute between the bank and the government.
TCB eventually filed a lawsuit against Ginnie Mae in October 2023, accusing the state-owned company of “foreclosing TCB’s first-priority lien on tens of millions of dollars of collateral without regard to consideration,” The lien arises from [FHA]- Sponsorship [HECM] program.”
Ginnie Mae reportedly sought help from TCB to avoid “catastrophic damage to the HECM program.” TCB said that in return for the loan to RMF, it obtained a first-priority lien on “certain HECM collateral,” which the bank called “critical” because in the absence of the lien, it was the only collateral TCB could rely on. The product is a bankrupt company of RMF.
Granted an extension
In subsequent filings, Ginnie Mae denied the allegations beyond material facts related to the agreements signed by the parties and the regulation of the HMBS program. Although Ginnie Mae sought to dismiss the case, the trial judge allowed much of the case to proceed and dismissed only a small portion of the original complaint.
Earlier this week, government prosecutors asked that the deadline for submitting discovery materials related to the TCB case be extended from mid-June to mid-July, saying an ongoing audit by HUD’s Office of Inspector General (OIG) and confidentiality concerns were necessary More time to file documents with court records.
The request for an extension was not opposed and was granted by Magistrate Judge Lee Ann Reno on June 13.
