Reverse Mortgage Daily
Home Equity Conversion Mortgage (HECM) endorsements dropped in November by 17.4 percent, representing a new low in volume since HECM rule changes were put into effect by the U.S. Department of Housing and Urban Development (HUD) in October, 2017.
The expected rise in mortgage interest rates for 2019 will create a domino effect on every major way that consumers interact with the housing market in 2019, including the affordability of both buying and renting a home, and even the commutes of workers across the country, according to a new forecast for the 2019 housing market authored by Aaron Terrazas, director of economic research at Zillow Research.
Still feeling the impact of rule changes to the reverse mortgage industry applied by the Department of Housing and Urban Development that went into effect on October 2, 2017, as well as an influx of new proprietary reverse mortgages, originators find themselves having to take a different approach concerning their business relationships with their referral partners in order to bring all involved parties up to speed with the relevant product changes.
The Consumer Financial Protection Bureau (CFPB) has seen changes in its activities ever since former director Richard Cordray stepped down in November of 2017.
With a month of experience with the Department of Housing and Urban Development’s new collateral risk assessment for reverse mortgage properties, lenders have reported a relatively smooth process in submitting appraisals to HUD and receiving responses as to whether a second appraisal is needed.
For any reverse mortgage professionals repositioning their businesses with new products and different strategies amid recent industry changes, now is the perfect time to rebrand, marketing experts say.
As rising interest rates make home purchases and refinances more cost-prohibitive for forward mortgage borrowers, reverse mortgages could be a worthwhile addition to forward lenders’ offerings, reverse professionals say.
When the LIBOR index expires in three years, experts predict it will most likely be replaced by the Secured Overnight Financing Rate — and transitioning to this index could create billions in reverse mortgage gains and investor losses, a new article states.
The reverse mortgage industry is beginning to feel the heat of rising interest rates, as originators and borrowers are seeing the impact to the bottom line.
As originators determine their overarching plans in the midst of low volume and lower principal limit factors, two reverse mortgage originators have turned their sights to politics.