Comments on: Top HECM Lenders Through May 2009

By: Senior Lending Network Stops Accepting Reverse Mortgage Applications | Reverse Mortgage Guide

Thu, 09 Jul 2009 22:33:30 +0000

[...] hopes to be back in business in 90 to 120 days. World Alliance Financial was ranked as the No. 4 reverse mortgage lender in May. A spokesperson for the company said that at its peak it funded abut 900 reverse mortgages a [...]

By: louise

louise — Thu, 04 Jun 2009 17:09:15 +0000

Going back to Fannie Mae, I still would like to hear Peter Bell’s analysis of what the new head of 1 to 4 unit housing, Karen Pallotta, thinks about reverse mortgages. Is she trying to shove them off on Ginnie Mae by pushing us into LIBOR products? Where does that leave the annual adjusting? Are there any LIBOR based annual adjusting products out there?

By: Eric A. Hiatt

Eric A. Hiatt — Thu, 04 Jun 2009 16:03:39 +0000

Critic

You have a great point in regards to critical and strategic trend analysis needed by originators in making marketing decisions.

At http://www.ReverseFortunes.com we have developed our productivity suite which can give the individual L/O the critical data needed to make marketing decisions based on their regional trends, and L/O characteristics.

It can also be used at corporate, broker,and branch levels to analyze the data over a more scaled structure.

Example. June and July of 2008, 2007 my P&L was negative. This year I took a close look at my productivity suite and noticed a decline in sales during those months for the last three years in a row. So this year I have adjusted my marketing budget accordingly. We are not only projected to be profitable through June July this year but we are also setting aside extra reserves to kick off our marketing campaigns in mid July.

Check it out!

By: John K. Lunde

John K. Lunde — Thu, 04 Jun 2009 15:36:24 +0000

We have published case number issuance (applications, loosely speaking) in a recent post and will be adding to a regular publication shortly.

For now, here’s the most recent post on apps, including volumes through the month of March:

http://rminsight.net/blog/2009/04/trend-watching-hecm-apps/

By: Mr. Reverse

Mr. Reverse — Thu, 04 Jun 2009 15:35:52 +0000

Fannie Mae didn’t help the situation by making the adjustable product irrelevant and eliminating the CMT based HECM. I believe the lower numbers are also related to the processing times on the fixed rate product.

By: Legal Eagle

Legal Eagle — Thu, 04 Jun 2009 14:56:30 +0000

On 4/1, certain appraisal guidelines were changed which had the effect of making nearly every neighborhood in America, a declining market. Appraisers had their workload doubled vis-a-vis the research required to support a decent valuation.

An unintended consequence was that many appraisers seem to have taken the short path to the lowest valuation, at the expense of our clients, who are not looking to flip or move, but rather to live in the home they love for the rest of their life if they can.

Nearly everything negative we have experienced recently has demonstrated the effect of the law of unintended consequences.

By: Mark Draper

Mark Draper — Thu, 04 Jun 2009 13:48:51 +0000

Pardon my ignorance what is 4/1?

By: Legal Eagle

Legal Eagle — Thu, 04 Jun 2009 13:06:03 +0000

Critic is correct in that what we may actually be seeing is the April decline based on originators struggling with the 4/1 valuation guideline changes and the resulting confusion in the marketplace.

Demand is there, valueation is not. The 4/1 adjustment was draconian.