Over the past two years, the percentage of fixed rate HECMs has surged to the point where it far outweighs the proportion of adjustable rate loans, a recent chart created by the Department of Housing and Urban Development depicts. However, in 2011 to date, the percentage has showed a slight decrease.
The increase to more than 65% of the market at a fixed rate is a drastic increase over past years when the percentage hovered under or near 10%. To date, 67.4% of HECMs in 2011 are of the fixed rate type, compared with more than 69% in 2010.
The chart was originally presented by HUD’s Karin Hill, HUD’s Office of Single Family Program Development director, at a recent Texas Mortgage Bankers Association conference in Houston.
Written by Elizabeth Ecker
