Items Tagged with 'reverse mortgages'

ARTICLES

  • Reverse mortgage industry reacts to FHA’s hint at future policy changes

    Last week’s actuarial report suggests more change is on the horizon
    Last week, FHA’s 2018 Report to Congress revealed the HECM portfolio’s continued drain on the MMI Fund. While the agency said it was optimistic past policy changes would improve the program, it also suggested more change is coming for HECMs. While this wasn’t exactly welcome news for an industry that can’t seem to catch its breath, reverse execs offered a measured response to FHA’s report.
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  • Finance of America Reverse rebrands as retirement solutions provider

    Announces partnership with home sharing service Silvernest
    Reverse mortgage lender Finance of America Reverse has announced it is rebranding as a provider of retirement solutions dedicated to helping people "get to work on retirement." FAR President Kristen Sieffert said the move is essential to change the conversation about reverse mortgages, stating that, "It's critical that we become more than a just a lender."
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  • FHA: No PLF changes for reverse mortgages

    Report reveals HECM’s drain, but FHA says it’s moving in the right direction
    The Federal Housing Administration released its 2018 Report to Congress on Thursday, revealing that the HECM program continues to be a drain on its flagship Mutual Mortgage Insurance Fund to the tune of $13.63 billion in the last fiscal year. But FHA Commissioner Brian Montgomery said the program is benefiting from policy changes made last year, and that the agency remains "optimistic that the quality of the book will continue to improve."
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  • FHA will not cut mortgage insurance premiums

    Actuarial report reveals insurance fund is in good health, but Montgomery says premiums will stand
    The Federal Housing Administration released details on the health of its flagship Mutual Mortgage Insurance Fund on Thursday, revealing a positive economic net worth of $34.86 billion and an acceptable ratio of capital reserves at 2.76%. The numbers are markedly better than last year, but FHA Commissioner Brian Montgomery said that doesn’t mean the agency will be reducing mortgage insurance premiums any time soon.
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  • Reverse mortgage lender American Advisors Group expands to VA loans

    Seeks to provide seniors with more home equity solutions
    Top reverse mortgage lender American Advisors Group has expanded its product offerings to include VA loans. The move is part of the company’s rebrand as it pivots away from its reverse-only focus, offering an expanded product suite with the goal of helping America’s seniors "retire better."
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  • Reverse mortgage securities continue decline

    Issuance totals highlight liquidity concerns
    The latest data on HECM-backed securities shows issuance continued its decline in October, and while HMBS float last month was up slightly to $55.5 billion, most of that can be attributed to highly seasoned collateral and not to new production. This means that it’s only a matter of time before HMBS float falls below the $55 billion mark – a vector that indicates less liquidity for investors.
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  • HECM margins stabilize at 2%

    Baseline Margin Report suggests lenders have adapted to new rules
    Margins on adjustable-rate reverse mortgage loans averaged 2% in September, according to HECM analytics provider Baseline. The average margin rate is up slightly from 1.99% in August, indicating that it is remaining relatively stable now that the industry has adapted to reverse mortgage program changes that went into effect in October 2017.
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  • Reverse Mortgage Funding: More financial advisors are recommending HECMs

    Lender ramps up education to help partners connect with advisors
    The reverse mortgage industry has been working for years to connect with financial advisors to teach them about the valuable role home equity can play in retirement income planning. Now, leading HECM lender Reverse Mortgage Funding says the effort is finally paying off. RMF says it has seen a significant uptick in interest from advisors and its investing sizable resources into helping its originators build this channel of business.
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  • Resolute Bank returns to grassroots to build HECM business

    Builds collaborative corporate culture to promote relationship marketing
    It’s been a hard year for the reverse mortgage industry, and like other lenders in the space, Resolute Bank has used the down market to rethink its business strategy. In the wake of program changes, the reverse team at Resolute took a good look at its business structure and decided it was time to return to grassroots.
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