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

  • Quarter of homeowners can't define a HELOC

    Nearly half plan to renovate, but most won't use their home equity to finance it
    Nearly half of homeowners say they have plans to renovate their home in the next two years, and a third of those intend to drop $50,000 to do it. This is according to a recent survey from TD Bank, which highlights a major opportunity for lenders: A sizable number of homeowners can't define a HELOC.
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  • Harvard: Americans have more equity, less mortgage debt

    Equity levels double in last 7 years
    Americans now have nearly as much home equity as they did when levels peaked before the housing crisis, according to a recent study on the state of the nation’s housing market from Harvard’s Joint Center for Housing Studies. The report shows aggregate home equity climbed from $7 trillion in 2011 to $15.5 trillion in 2018.
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  • Live Well Financial forced into involuntary bankruptcy

    Judge grants creditors' petition to push lender into Chapter 7 liquidation
    Live Well Financial has officially entered bankruptcy protection, as a Delaware judge granted a petition Monday that forces the defunct lender into Chapter 7 involuntary bankruptcy. Court documents also reveal that Ginnie Mae has begun taking steps to terminate and extinguish Live Well’s interests in various MBS pools.
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  • Home equity withdrawals fall to new low

    Homeowners tapped just 1% of available equity in Q1
    After declining for two consecutive quarters, tappable equity rose in the first quarter of the year, but it appears homeowners are still reluctant to touch it. According to the latest report from Black Knight, homeowners tapped just 1% of available equity in Q1 – the lowest share since it began tracking the metric in 2008.
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  • FHA's reverse mortgage changes have slashed the default rate

    Policy of assessing borrower's credit risk appears to be doing the trick
    It’s been four years since the Federal Housing Administration instituted a policy requiring all prospective reverse mortgage borrowers undergo a financial assessment to determine their suitability for the loan, and so far, it appears to be working. According to the latest analysis from New View Advisors, Financial Assessment has slashed tax and insurance default by more than three-quarters and serious defaults by more than two-thirds.
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  • Canada's reverse mortgage program is seeing tremendous growth, so what's the U.S. doing wrong?

    Reverse mortgage debt in Canada reached an all-time high in April
    Canada’s reverse mortgage market continues to see explosive growth while its U.S. counterpart struggles to stay afloat. Reverse mortgage debt in the country reached an all-time high in April by climbing to $3.66 billion, according to Canada’s Office of the Superintendent of Financial Institutions. This represents a 28.15% increase from the previous year.
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  • Baby Boomers creating "near-gridlock" by aging in place

    Boomers have become "a stick in the spokes" of the housing market, Chicago Tribune says
    Baby Boomers, the 75 million Americans born between 1946 and 1964, are clogging up the housing market, according to a Chicago Tribune story. Instead of moving to retirement communities, Baby Boomers are opting to age in place, keeping about 1.6 million houses off the market.
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  • Senior housing wealth continues to smash records

    Older homeowners have amassed an unprecedented $7.14 trillion in home equity
    Older homeowners continue to rake in the home equity as home values appreciate across the nation, with the latest data revealing that equity levels for the 62-and-older set grew by $104 billion last quarter. That brought senior housing wealth to a record-breaking $7.14 trillion in the first quarter of the year.
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  • Cerberus issues $174 million of debt secured by home equity lines of credit

    They're baaaaack, and rated triple-A
    A unit of Cerberus Capital Management last week issued $174 million of debt secured entirely by home equity lines of credit, or HELOCs, according to The Wall Street Journal. It’s a type of mortgage bond that went extinct in the wake of the financial crisis after a reversal in home prices made older versions worth pennies on the dollar.
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