Articles by Jessica Guerin

Americans now have less equity to tap

Tappable equity falls for the first time since the market's recovery
According to the latest report from Black Knight, tappable equity on mortgaged properties is now $5.9 trillion – down from last quarter’s record-breaking $6 trillion. American homeowners with a mortgage lost about $2,300 in equity this quarter and now have $136,000 available to tap as a slowdown in home price appreciation dampens growth.
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Here's where HECM originators see opportunity in 2019

Reverse professionals share their focus in the year ahead
There’s no disputing that it’s been a rough year for the reverse mortgage industry, with volume recently falling to a low the industry hasn’t seen in 14 years. But now that program changes issued in October 2017 are firmly in the rearview, some HECM originators are ready to charge ahead, optimistic about the promise for better business in the year ahead.
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Home price appreciation is slowing down

Equity is still climbing, just not as fast as before
The average homeowner gained $12,400 in equity in one year's time, according to CoreLogic's Home Equity Report for the third quarter of 2018. And while that's not exactly nothing, it's the smallest annual increase in two years, reflecting a slowdown in home price growth.
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Reverse mortgage securities fall to 4-year low

"The market has yet to find its new normal"
The latest data on HECM-backed securities reveals that issuance fell in November to $521 million, hitting the lowest level in four years thanks to low origination volume. According to a report from New View Advisors, only 84 pools were issued in November, the lowest number since February 2015.
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AAG hires new senior VP of operations

Joe Stephenson will oversee all sales channels
American Advisors Group has named Joe Stephenson senior vice president of operations. As such, he will oversee operations for all of AAG's sales channels, including its call center, national field sales division and wholesale division. The hire comes not long after the leading reverse mortgage lender launched a massive rebrand that involved an expansion of the company's offerings in an effort to help seniors "retire better."
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Class Appraisal changes name to Class Valuation

AMC rebrands to become full-service collateral valuation provider
Class Appraisal, a Michigan-based appraisal management company, has announced that it's changing its name to Class Valuation to better describe its expanded focus. The company said its services will now include "new and disruptive" collateral valuation products, a move it is making to keep up with technological advancements impacting the space.
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CFPB-to-BCFP name change could cost companies $300 million

Internal analysis contradicts Mulvaney’s claim that rebrand would cost nothing
Since March, the Consumer Financial Protection Bureau has been pushing for a name change, and while rearranging the four letters in its acronym doesn't seem like much, a report suggests the move could cost companies quite a lot.
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Reverse mortgages plummet to 14-year low

Volume falls 17%
After months of uneven recovery following last October's program changes, reverse mortgage volume has fallen to a low it hasn't seen since 2004. The latest data from analytics firm Reverse Market Insight reveals that HECM endorsements fell 17.4% in November – reaching its lowest point since new policy guidelines were implemented last fall.
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Reverse mortgage industry reacts to David Stevens' criticism

"The observations and approach are out of date"
David Stevens – the former head of the FHA and the MBA – made some scathing remarks about reverse mortgages last week that sparked heated criticism from members of the industry. HECM professionals say Stevens' remarks fail to acknowledge program changes that have already taken place, calling his comments disappointing and dated.
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LenderClose adds to sales, developer teams

Brings on Erika DeMers and David Stiennon to facilitate growth
LenderClose, a digital lending platform for credit unions and community banks, has hired two associates to its team, naming Erika DeMers sales associate and David Stiennon senior front-end developer.
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