Mortgage Orb writes that while the reverse mortgage sector has been one of the few bright spots within mortgage banking, the subservicing aspect of the business has yet to take off.
Darryl Hicks, VP of communications for the National Reverse Mortgage Lenders Association tells MortgageOrb that part of the problem regarding the lack of subservicing activity in the sector can be blamed on the nature of the sector.
“To begin with, there are not a whole lot of people servicing reverse mortgages,” he explains. “This is still a small sector. We’re not a large industry, and the pace of origination flattened off in the past two years, so there is not a growing need for subservicing.”
Gordon Albrecht, executive vice president and chief strategy officer at FCI Lender Services Inc., in Anaheim Hills, Calif., believes that more subservicers could begin streaming into the sector.
“Reverse lending, as presented to us, has a reasonable servicing fee built in by the originator,” he says. “Then, we do the servicing at our lower subservicing fee. The originator gets a spread for income, we get our standard subservicing fee and the borrower gets professional servicing statements each month. It looks like it should work for everyone involved.”
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