Reverse

Hey homebuilders, you need to learn about this little-known reverse mortgage product

Here’s why the HECM for Purchase is crucial to tackling affordability problems for the 55+ market
The 55+ housing market is hot right now, with builders and developers reporting significant demand across the country. But while the sector's performance right now is solid, looming affordability concerns threaten to dampen its growth. For those who want to remain competitive in this environment, a little-known reverse mortgage product could be the answer.
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Home values see largest single-month decline since 2012

The average home lost $1,361 in value since August
After years of steady recovery, home values have begun to decline, experiencing the largest single-month decline in November since housing recovery began, according to the latest data from Black Knight. Here is a map of home price appreciation in all 50 states.
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HUD lists 2018 housing accomplishments

Names reverse mortgage adjustments, disaster relief, community reinvestment among highlights
Last week, the Department of Housing and Urban Development released a list of its accomplishments in 2018 under the leadership of Secretary Ben Carson. In the last year, the agency said its programs have spurred reinvestment in communities, advanced economic opportunity, reduced homelessness, funded disaster recovery, and protected taxpayers.
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Reverse mortgage data spotty for January

Government shutdown clouds endorsement results
Reverse mortgage endorsements dropped 5.8% to 1,649 loans in January, according to the latest report from Reverse Market Insight. But HECM loans were not endorsed during the recent government shutdown, so the data reflects a huge gap in activity from Dec. 22 to Jan. 27. "It's hard to honestly know what to make of that given the noise introduced by the government shutdown," RMI wrote.
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High-turnover cities have greatest home price growth

Study reveals cities strong correlation between the two
In cities where the residents move frequently, home price appreciation is the strongest. A new survey by LendingTree revealed that on average, homeownership tenure is about seven years, and while the difference between the highest average tenure and the lowest doesn’t seem like much, the impact was evident on home price growth in those cities.
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More homeowners are taking cash-out refis on government loans

Borrowers with fewer alternatives are cashing in their equity
While overall refinance activity is down, cash-out refis are up – and while true across the board, the trend is glaringly apparent among government-backed loans. Of all refinances on government-backed loans offered by the FHA and the VA, 76% were cash-outs – the highest share on record.
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Canada's reverse mortgage market sees explosive growth

Meanwhile, its U.S. counterpart sinks. What gives?
Reverse mortgages in Canada are all the rage, apparently, with the market closing out December up 31% year over year and a new bank jumping in to grab a piece of the action. Meanwhile, the reverse mortgage market in the U.S. is down 27% from last year, settling into a 14-year slump. So why do the two markets – which face the same convincing demographic and economic trends – vary so drastically in their rate of success?
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Survey: Half of Boomer homeowners plan to age in place

Most say they plan to borrow from their equity to make it happen
More than half of Baby Boomers plan to age in place, electing to renovate in order to meet their changing needs, according to a new survey released by Chase and Pulsenomics. With home prices appreciating at a healthy clip, many older homeowners may look to their equity to fund home improvements.
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Reverse mortgages finally make headway with financial advisors

One broker-dealer now permits discussions about the loan. Will others follow suit?
Reverse mortgages are often touted as a financial planning tool that can be used strategically to boost one’s income in retirement. But getting through to the financial advisors who work with planning-oriented consumers has been difficult thanks to a widespread institutional blackout on discussions related to the use of housing wealth. Is the tide finally beginning to turn?
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Reverse mortgages close out 2018 on a tough note

Is this the new normal?
It’s been a brutal year for the reverse mortgage industry – and that’s saying something considering everything the industry has been through. Now, constrained by new guidelines that make a reverse mortgage less beneficial, is the industry destined to embrace a business that operates with less volume? Is this the new reality? Experts weigh in.
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