Regulators are uncomfortable with the prospect of giant non-bank servicers. But what size should servicers be? Twenty years ago, 100,000 accounts was a big servicer. Now, it’s the bare minimum. But, if that’s the floor, is there also a ceiling?
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.