After several years of program changes, the reverse mortgage industry is facing its biggest change yet: the Financial Assessment.
“We are on the cusp of entering a new era of the business” said Peter Bell, president and CEO of the National Reverse Mortgage Lenders Association during its eastern regional event in New York City.
The assessment is meant to provide a set of underwriting standards that borrowers must meet in order obtain a reverse mortgage. This new process, while it could impact volume in the short term, should be beneficial to the industry over the long term, according to industry participants. Many have implemented training programs and other preparations in advance of the changes to ready for the assessment’s implementation.