Amid multiple wildfires in the Los Angeles area, over 153,000 people are currently under evacuation orders. The reverse mortgage industry is urging impacted borrowers to contact their loan servicer and insurance carrier promptly. With an estimated 10 deaths and numerous structures destroyed, industry representatives are emphasizing the importance of communication.
Lenders, servicers, and originators are advising borrowers to notify their servicer about any issues that could affect property occupancy under FHA-backed reverse mortgages. The high volume of reverse mortgage borrowers in Los Angeles County has prompted swift responses from industry players.
Industry responses to the disaster
The National Reverse Mortgage Lenders Association (NRMLA) is urging its members to encourage borrowers to reach out to their servicers immediately. Other industry leaders like HighTechLending and Finance of America are also mobilizing resources to assist affected individuals.
New American Funding (NAF) has activated an emergency response plan in Los Angeles County, offering forbearance assistance to customers impacted by the wildfires. With a significant number of Home Equity Conversion Mortgages (HECMs) in the area, industry professionals are taking a proactive approach to support borrowers.
Situation on the ground
George Morales from Mortgage Cadence highlights the need for a proactive response given the concentration of reverse mortgages in Los Angeles County. Originators like Tom O’Donoghue are facing delays due to FEMA orders, impacting current business operations.
Despite challenges, industry professionals are reaching out to clients and offering support during this difficult time. Reverse mortgage servicing professionals emphasize the importance of contacting insurance companies and servicers for relief.
Next steps
Celink advises impacted borrowers to start the insurance claims process and contact their servicer with property damage assessments. Those affected should also reach out to FEMA for assistance. As the situation evolves, stay tuned for more coverage on reverse mortgage servicing during the Southern California wildfires.
Editor’s note: This is a rapidly developing situation. Look for more RMD coverage of reverse mortgage servicing during the Southern California wildfires in the coming days.
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