Items Tagged with 'HECMs'

ARTICLES

  • Are more borrowers really taking out non-agency reverse mortgages? Originators weigh in

    Lenders say interest has spiked, but data is lacking. LOs in the field chime in
    In the past year, the reverse mortgage industry has seen a number of non-agency reverse mortgages come to market. But while most lenders say interest in their jumbo reverse products has been strong, data is sorely lacking. To shed some light on what's really happening, we reached out to a handful of active reverse originators to learn about what they're seeing in the field. Here's what they had to say.
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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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  • 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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  • More countries promote reverse mortgage-like programs

    Hong Kong and Malta work on their own equity-release products
    Reverse mortgages are finding some traction abroad as more countries adopt and tweak equity-release programs designed to allow seniors to access their home's equity. Recently, the tiny Mediterranean island of Malta announced the pending launch of an equity-release program for retirees, while Hong Kong announced changes to its program to allow borrowers to relocate without defaulting. These developments highlight the fact that policymakers across cultures recognize the potential solution equity access presents as the global population continues to age.
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  • Lender margins on reverse mortgages are finally making a comeback

    Data suggests lenders are adjusting to a new normal after a rough 2018
    Margins on adjustable-rate reverse mortgages have continued to inch higher after a nine-month descent that began last March, suggesting that perhaps the industry is beginning to recover after a rough year and a half. According to Baseline Reverse’s Dan Ribler, margins are trending upward and lenders are feeling a bit more positive about the business.
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  • Reverse mortgage volume settles at 36% low

    Is this the new normal?
    Now that the noise from the government's shutdown has quieted, it seems reverse mortgage endorsement volume has officially settled at -35.7%. According to the latest report from Reverse Market Insight, endorsements in March totaled just 2,573 loans, and its analysis suggests this is in line with industry totals over the last five months.
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  • HUD: Reverse mortgage volume tanked in Q1

    Latest report paints troubling picture for HECMs
    Reverse mortgage volume has been on a rapid descent since program changes took hold in early 2018, and the trend doesn't appear to be slowing. The Department of Housing and Urban Development released its quarterly report to Congress on Monday on the state of the Federal Housing Administration's flagship Mutual Mortgage Insurance Fund, and its details on the flailing state of the reverse mortgage program are eye catching.
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  • Trump asks HUD to address financial viability of reverse mortgage program

    Housing finance reform to include assessment of HECMs
    President Donald Trump this week put into motion federal action on the "overdue reform of the housing finance system." Among the president's to-do list for the HUD secretary: address the financial viability of the reverse mortgage program, and report back to him promptly with a detailed plan for reform.
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  • University Lending acquires assets from Huron Valley Financial

    Deal includes acquisition of HECM lender 1st Nations Reverse
    University Lending has acquired assets from Huron Valley Financial, taking on 52 of its employees, including its wholesale lending division, HVF Partners, and its reverse mortgage channel, 1st Nations Reverse. The deal between the two Michigan-based companies will bring University’s total employee headcount to 440 and will make it the largest locally based first mortgage originator, University said.
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