Reverse

Reverse

ReverseReview is a beat dedicated to reverse mortgages and home equity use.

Jessica Guerin is an editor at HousingWire covering reverse mortgages and the housing wealth space. She worked previously as the editor-in-chief of The Reverse Review Magazine, and leads HW's charge into covering the housing wealth and HECM market.

ARTICLES

  • Why these mortgage companies are teaching their LOs to originate reverses

    Is versatility the secret sauce to success in a competitive landscape?
    Traditionally, mortgage originators have focused on standard loan products, referring out prospects interested in reverse mortgages to specialists who work only with those loans. But now, as the mortgage lending landscape becomes increasingly constricted, do LOs who can handle both forward and reverse origination themselves have a better shot at success? These mortgage companies say yes.
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  • PennyMac jumps into home equity business

    Rolls out HELOC product for existing customers
    PennyMac is betting on opportunity in home equity lending, announcing Friday that its Loan Services subsidiary will now offer HELOCs. The nonbank's foray into home equity lending comes at an interesting time, as some experts say certain market dynamics signal the likelihood of an impending home equity boom, while others are saying quite the opposite.
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  • HECM margins hover in 2% range

    Market finds competitive footing after volatile year
    Margins on adjustable-rate reverse mortgage loans averaged 1.96% in November, according to Baseline Reverse's latest Margin Report. This represents only a slight dip from previous months and suggests that margins have stabilized as lenders adjust to product changes.
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  • Top 10 reasons why borrowers pursue a jumbo reverse mortgage

    AAG borrower survey pinpoints market potential
    American Advisors Group has surveyed borrowers who have chosen its private-label AAG Advantage loan to determine what prompts seniors to pursue a jumbo reverse mortgage. The results highlight the vast differences between the average reverse mortgage borrower – whose financial situation is often tenuous – and those who pursue a jumbo reverse to access the equity in a higher-value home.
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  • Reverse mortgage securities market shrinks

    Will lower HMBS float scare off investors?
    Reverse mortgage volume has taken a nosedive in the past year, a fact that is glaringly evident by the product's performance in the secondary market. The latest from New View Advisors reveals that outstanding float of HECM-mortgage backed securities has fallen yet again. "At some point, declining float could affect HMBS liquidity and therefore pricing," said New View Partner Michael McCully.
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  • Analyst predicts weak year for HELOCs

    Says rate hikes will make these loans more expensive
    Many predict the Federal Reserve will raise interest rates in the year ahead, and this means HELOC borrowers can expect their loan payments to creep upward. Bankrate.com's Chief Financial Analyst Greg McBride predicts many HELOC borrowers will see their rates increase by 50 basis points this year.
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  • Quontic Bank: Proprietary products are key to reverse mortgage success

    Says this is where the opportunity lies in 2019
    As the FHA's reverse mortgage product continues to see its volume decline, some lenders – like New York-based Quontic Bank – are setting their sights on non-agency proprietary reverse mortgages to recapture market share. "I really think that’s where the future of this product is," said Quontic CEO and Chairman Steven Schnall. "Keep the federal government out of it and let the free market do its thing."
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  • Home price growth slows in most states

    71 of the largest 100 markets see appreciation weaken
    Home prices have appreciated consistently since the housing market began its recovery, but now they appear to be slowing down after a six-year run. The latest data from Black Knight reveals while the slowdown is apparent across much of the nation, the west saw the most deceleration, with California falling below the national average for the first time since 2012.
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  • Class action lawsuit on forced-placed insurance for reverse mortgages gets green light

    Judge fails to dismiss suit against CIT Bank, Financial Freedom and 3 insurance companies
    A federal judge in New Jersey denied a motion to dismiss a class action lawsuit over force-placed insurance policies for reverse mortgage borrowers. The suit claims that CIT Bank, its former subsidiary Financial Freedom, and three insurance companies conspired to defraud borrowers by charging excessive fees for forced-placed insurance applied to their properties.
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  • IRS to resume income verification for mortgage applicants amid shutdown

    Responds to trade group pressure to make tax transcripts available to lenders
    The Internal Revenue Service will resume processing lender requests for tax transcripts to verify income for mortgage applicants despite the government shutdown. On Monday, the IRS announced it will begin working through the backlog of requests that have piled up since December 22 and that the employees involved will return to work.
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