ReverseReview

Minority homeowners saw highest rate of equity growth

Equity gap widens between white and minority communities
Homeowners in minority neighborhoods started out with the lowest level of home equity but saw the greatest percentage gain in the last six years, according to a Redfin study. ZIP codes with mostly white residents had the lowest percentage gains in equity, but the largest increase in absolute dollars.
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Cherry Creek Mortgage LOs learn HECMs to grow business

1st Reverse Mortgage USA teaches parent company originators about reverse
Interest rates are up, refi volume is down, and some mortgage originators are feeling the pinch. Cherry Creek Mortgage is helping its LOs bolster their game by teaching them how to add reverse mortgages into their product mix.
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Patch Homes wants to invest in your house

Company exchanges cash for a share in future home price appreciation
American homeowners are sitting on a record amount of home equity, but many are not accessing what might be their greatest source of wealth. The situation has given rise to a fairly new concept called homeownership investment, which may transform the way consumers cash in on their home equity. Patch Homes is one such company looking to grow in this burgeoning space.
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US Mortgage sees opportunity in down HECM market

Establishes reverse mortgage curriculum for LOs
In challenging times, some see defeat and steer clear, while others see opportunity and dive in. When it comes to reverse mortgages, US Mortgage Corporation has opted for the later, launching a HECM division with a multi-layered curriculum designed to teach forward LOs how to originate reverses.
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Americans have the highest amount of tappable equity in history

There is now more than $6 trillion for the taking, but fewer homeowners are touching it
The amount of home equity accessible to America’s 44 million homeowners surpassed $6 trillion – the highest level in history. Now, Americans have three times as much equity as they did when the market bottomed out in 2012, and 21% more than they did at before the bubble burst in 2006. Yet, fewer appear to be taking advantage of this major source of wealth.
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Baby Boomers won’t downsize homes anytime soon

Instead, they're working longer and the kids are living with them
Baby Boomers are staying put and their kids are sticking with them, according to a new study by Trulia that examined the housing situations of homeowners 65 and older. The study revealed that seniors appear to be holding off on downsizing just the same as they were 10 years prior, and that contrary to some opinions, the lack of downsizing is not eroding affordability.
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HECM data suggests worst may be over

Volume sees second month of consecutive growth
Reverse mortgage endorsements rose 9.9% from July to August, according to the latest data from analytics firm Reverse Market Insight. The slight uptick marks the second month of growth for the industry, and it may be a sign that the market is finally forging a path toward recovery.
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Retirement experts: Trump's order on retirement savings falls short

Fixing the retirement problem means fixing Social Security
Last week, President Donald Trump made a move to address what many are calling a looming retirement crisis that could cripple the country as more Baby Boomers age. While his promise to “take care of our people, to rebuild our nation, and to fight for our great American workers” sounds great, some retirement experts question whether it really amounts to much.
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The Mortgage Professor debunks 4 HECM myths

“I view driving a car as a lot riskier than taking a reverse mortgage”
“When you drive, you have no control over the maniacs on the road, but when you take a reverse mortgage you are fully in charge of all the risks.” So wrote Jack Guttentag, a.k.a. The Mortgage Professor, in an article that took issue with the assertion that reverse mortgages are “unduly risky.” Guttentag lined up four reverse mortgage myths and shot them down, one by one. Here’s a recap.
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Lack of retirement savings haunts Baby Boomers

Will home equity access be the solution?
An estimated 10,000 Baby Boomers are expected to enter retirement every day by 2030, but data reveals that an alarming number are financially unprepared for retirement. As older adults search for ways to bolster their retirement savings, will accessing their home equity be the answer?
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