Reverse

Home equity gains continue to slow

Homeowners see returns slip as home-price growth moderates
The average homeowner gained $6,400 in home equity in 12 months’ time as of the first quarter of the year, according to the latest CoreLogic data. While on its face that might seem like a solid return for zero work, a brief look at historical gains reveals that, well, maybe not so much.
Read More

Experts: There's an urgent need to stabilize the reverse mortgage program

Say HECMs the only means for low-income seniors to age in place
A group of experts on aging and retirement gathered at a private meeting hosted by the Urban Institute to discuss the retirement crisis looming over the country's older population, and one thing was abundantly clear: We must find a better way to monetize home equity. For starters, urgent fixes are needed to stabilize and improve the reverse mortgage program.
Read More
From HW Magazine

AAG changes the conversation around the use of home equity

AAG's new brand message, "Retire Better" focuses on thoughtful and personalized solutions
Within AAG’s wholesale division, the feedback the company continued to hear from its brokers (some 800+ of them) is that borrowers and family members are still being influenced by old assumptions about HECM products, which have changed significantly since they were introduced by the Reagan administration in 1989. New regulations have improved standards and added safeguards, to further protect older Americans, making home equity mortgages now another option as a strategic financial planning tool for many seniors.
Read More
From HW Magazine

What happened to reverse mortgages?

Reverse mortgages taken a brutal hit in the last two years
For anyone actively working in the mortgage industry, it’s no secret that reverse mortgages have taken a brutal hit in the last two years. The U.S. Department of Housing and Urban Development issued major program changes at the end of 2017 that effectively limited the amount of proceeds and the number of people who could qualify for the loan. The result had lenders across the space enduring sizable volume drops and subsequent gashes to their bottom lines.
Read More

HUD earmarks $43 million for housing counseling agencies

Adds additional $2.5 million for counselor training
The Department of Housing and Urban Development has set aside $43 million to fund grants for hundreds of housing counseling organizations. The grants will be used to help HUD-approved agencies counsel consumers on things like buying a first home, finding affordable rental housing, obtaining a reverse mortgage or avoiding foreclosure of eviction.
Read More

Urban Institute to FHA: Fix your reverse mortgage servicing problems

Stop transferring servicing rights, it’s costing millions
Policymakers have long struggled with how to fix the FHA's reverse mortgage program to prevent it from draining the agency's mortgage insurance fund. But researchers are the Urban Institute have an idea: Fix the program's servicing problems, which they call "one of the biggest drivers of losses in the HECM program." Here's what they suggest.
Read More

Homeownership investment startup Hometap expands into new states

Now available in 6 states, Hometap can help 20% of U.S. homeowners access their equity
Homeownership investment startup Hometap has expanded into six states, the company announced Wednesday, making its services accessible to 20% of U.S. homeowners. Hometap founder and CEO Jeffrey Glass said the company aims to help those who are house rich but cash poor gain debt-free access to their home's equity.
Read More

Government watchdog considering ways to reduce federal costs of reverse mortgage program

CBO report analyzes impact of 4 proposed solutions – all of them drastic, none of them good
The Congressional Budget Office released a report Thursday exploring four proposed solutions for lessening the cost and risk of the reverse mortgage program to the federal government. And, the report explores the potential impact of each solution on lenders, borrowers and the budget. Here’s a recap.
Read More

Blue Ridge Bank launches reverse mortgage division

Announces partnership with ReverseVision
North Carolina-based Blue Ridge Bank announced this week that it has partnered with HECM technology provider ReverseVision to launch a reverse mortgage division. The bank, which said it has closed $25 billion in forward loans, is implementing ReverseVision’s RV Exchange loan origination system to support its launch.
Read More