Reverse

American Advisors Group ups reverse mortgage support for brokers

Invests in resources to grow its wholesale channel
American Advisors Group announced the launch Monday of an expanded set of resources designed to help its wholesale partners elevate their reverse mortgage business. AAG is ranked No. 1 in reverse mortgage lending overall, but it's No. 4 in wholesale. Now, with an enhanced set of tools for brokers, it just may climb the ranks.
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Study finds home equity can solve part of the retirement crisis

But as it won't provide a solution for everyone, policymakers need to set up
The majority of middle-income seniors will not have enough money to cover essential living and medical expenses a decade from now, according to a recent study by researchers at the University of Chicago. But while utilizing home equity can help alleviate the burden for some, it can't provide a solution for everyone.
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How many borrowers are taking out jumbo reverse mortgages? No one really knows

The industry avidly tracks HUD-endorsed HECMs, but it's sorely lacking cross-lender data on non-agency reverses
For the last several months, data on reverse mortgage volume has illustrated a steady descent as the industry has struggled to regain its footing in the wake of program changes. But does this tell the whole story? Five lenders now originate proprietary reverse mortgage products. But the problem is they all decline to offer specifics on volume, so there’s no way to tell just how many of these non-agency loans the industry is collectively closing.
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Victims of reverse mortgage scam want protection from Ditech bankruptcy

Request the creation of a committee to protect consumer interests
Ditech is in the midst of a bankruptcy, and some are worried that the rights of its borrowers will be trampled in the process. A recent filing with the U.S. Trustee asked that a consumer creditor committee be formed to protect the rights of those who have claims with Ditech, including the victims of a reverse mortgage scam who have open claims with Ditech subsidiary Reverse Mortgage Solutions.
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Most homeowners think a reverse mortgage is a last-resort option. Here's why they're wrong

Savvy homeowners can use the loan to maximize their resources in retirement
Reverse mortgages are traditionally thought of as a last-resort option for seniors who want to stay in their homes but have little resources and few options left. But research has proven otherwise. For those over 62 who want to age in place, a reverse mortgage can be a beneficial financial planning tool for more well-off borrowers in a number of ways.
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Why aren't more people tapping into their home equity?

Homeowners have record amounts of housing wealth, so why are they so reluctant to use it?
Homeowners have a nice stockpile of pent-up wealth in their homes and home prices continue to appreciate. And, it seems that every quarter a new startup emerges promising to disrupt the home equity space by giving homeowners a better, faster, cheaper or even debt-free way to tap into the wealth in their homes. And yet, so many Americans appear to be reluctant to take this route. What gives? We talked to a number of experts for their take.
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Fintech lender Prosper to pay $3 million fine for misleading investors

Settles SEC charges that it reported inflated returns
Prosper, a longtime player in the personal lending space, announced plans in November to enter the mortgage arena with a digital HELOC product that promised to disrupt home equity lending. But there's a chance these plans could be put on hold. The SEC announced Friday that Prosper has agreed to pay a $3 million fine to settle charges that it misled to investors by reporting inflated returns.
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Ginnie Mae announces Platinum product for reverse mortgage-backed securities

New program may increase liquidity in HMBS market
Ginnie Mae has launched a new securitization channel for reverse mortgage-backed securities. Now, investors in the HECM mortgage-backed securities market can participate in Ginnie’s new Platinum HMBS program, which reduces the administrative costs of holding multiple and smaller HMBS securities and promises to bring more liquidity to the market.
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Ditech says its reverse mortgage business is unprofitable

With continued losses likely, the struggling nonbank says it's weighing its options
Aware that sweeping regulatory changes would likely send the reverse mortgage business into a tailspin, Ditech – then named Walter Investment Management – shut down the HECM origination channel of its subsidiary, Reverse Mortgage Solutions, in 2017. But the company has continued to service reverse mortgages, and it’s not going well. According to a report filed Tuesday with SEC, Ditech's reverse mortgage business is operating at a sizable loss – and this trend isn’t likely to turn around anytime soon.
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WTH is a reverse mortgage?

So many consumers think they're a scam. Here's the truth.
Reverse mortgages may be the most misunderstood – and the most maligned – financial product out there. But for those who are certain they are simply a scam, shrug off your perceptions for a moment and consider this: Would the U.S. government really endorse a scam for the last 30 years? Not likely. While unforeseen problems with the loan have largely been resolved, the sour scent of foul play lingers. To clear the air, here is a list of facts curated specifically to address the questions of what, exactly, is a reverse mortgage.
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