As the reverse mortgage industry navigates a market in distress, HECM professionals from around the country are making plans to attend Reverse Mortgage Day in Plano, Texas, next month.
Hosted by the Texas Mortgage Bankers Association, this event will unite lending professionals to discuss important issues affecting the reverse mortgage space and explore ways originators can succeed in this challenging climate.
Last fall, the U.S. Department of Housing and Urban Development raised premiums and tightened loan limits, causing HECM volume to tank and lender profitability to shrink.
Now embarking upon its 19th year, Reverse Mortgage Day is especially important for lenders struggling to regain their footing in the wake of HUD’s changes.
This year’s event boasts four sessions featuring six to seven speakers that will tackle topics designed primarily for originators.
Scott Norman, chairman of Reverse Mortgage Day and vice president of field retail and government relations at Finance of America Reverse, said the mortgage symposium will give everyone a good snapshot of where the industry is today and where it is headed in the future.
"As more Americans are forced to deal with stock market fluctuations and expanding health care costs, reverse mortgages will continue to take on a greater significance," Norman said.
The fact that the event is held in Texas is also notable. Because of its homestead laws, the Lone Star State was the last state in the U.S. to legalize reverse mortgages, not allowing them until voters approved a Constitutional amendment in 1997.
It took until 2001 for Texas to close its first HECM. Now, it is the third-largest state for reverse mortgage volume in the country, coming in behind California and Florida. Protections for reverse mortgage borrowers are built into the state Constitution.
"It took four separate amendments, but it's safe to say that Texas reverse mortgages are amongst the safest and most consumer-friendly in the country,” Norman said. “The overwhelming acceptance we're seeing in Texas and around the country reinforces our belief that reverse mortgages remain a premier, cost-effective and traditional retirement option for senior homeowners as they evaluate their financial plans."
Last year’s event hosted 75 different companies from 20 different states around the country, and Norman said he expects more attendees this year.
The annual event will take place September 11th at Marriott Legacy Town Center in Plano. More information about Reverse Mortgage Day will soon be available at texasmba.org.