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

  • 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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  • The problem with getting a reverse mortgage on a condo

    With FHA spot approval a distant memory, originators struggle to help condo owners secure a HECM
    Ever since the FHA eliminated spot approvals for condominiums, reverse mortgage originators have logged countless hours helping prospective borrowers secure a HECM on their condo – sometimes to no avail. And, with HUD dragging its feet on finalizing rules that would bring back spot approval for FHA loans, it doesn't seem like things will change any time soon. Will non-agency reverses provide the answer?
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  • Reverse mortgage volume plunges 31.4%

    Industry sees second consecutive month of 14-year lows
    The reverse mortgage program can't seem to find its footing in the wake of program changes issued in October 2017. Since the endorsement totals began to reflect the new guidelines, volume has been shaky, but so far, December takes the cake, closing out with a steep 31.4% decline – a low the industry hasn't seen since January 2004.
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  • Government shutdown halts reverse mortgage endorsements

    FHA's limited operations to impact HECM lending
    With the government shutdown approaching the two-week mark, reverse mortgage endorsements have ground to a halt. The FHA released a notice stating it will not be making insurance endorsements for HECM loans during the shutdown, and lenders with issues regarding the second-appraisal protocol will be out of luck.
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