Comments on: WAPO Columnists Sees Reverse Mortgages Popularity Growing in 2010

By: iluvrms

iluvrms — Mon, 11 Jan 2010 14:48:09 +0000

Critic,

What I meant was simply that the reverse is still the only tool that allows equity from the home to be used without required monthly repayment, and while you and I are aware of what “used to be” the vast majority of the outside world is not. I'm no analyst, but it seems to me that if the principal limit was so high in the beginning so as to possibly put the investors at risk, perhaps it was too high in the first place. Maybe once these details have been adjusted, the reverse will have a better reputation and will be more accepted, allowing the LO's to actually be able to make a living.

By: The_Cynic

The_Cynic — Sat, 09 Jan 2010 21:29:07 +0000

REVGUYJIM,

Pollyanna could not have said it any better.

Now tell me what should I tell the seniors who call and tell me that the numbers I and my peers are giving them now are a lot less than they were a few months ago. Is it a figment of their imagination?

You sound more like a sales management executive than an originator. I read the same kind of reasoning in the book of Exodus in the Bible regarding the making of bricks. Take away more "straw" but keeping the same amount of bricks. That worked then, or did it?

By: The_Cynic

The_Cynic — Sat, 09 Jan 2010 21:29:07 +0000

By: The_Cynic

The_Cynic — Sat, 09 Jan 2010 21:27:05 +0000

By: The_Critic

The_Critic — Sat, 09 Jan 2010 21:13:59 +0000

Many seniors I looked at for fixed rate HECMs certainly look like they would get less “money” if they got a FHA Case Number on 9/30/2009 or 10/1/2009. I sure would like to know how they would receive the same amount. It seems either you or I need some help on this matter. So why don't you explain why I am so wrong.

By: REVGUYJIM

REVGUYJIM — Fri, 08 Jan 2010 21:56:39 +0000

Those of us in the industry are often guilty of, to use a worn phrase, 'not seeing the forest for the trees.' ILUVRMS makes excellent points, and if we let our own disappointment with AVMs, NPLs et al show to our customers, we may well become the primary force driving them away.

By: jeffreverse

jeffreverse — Fri, 08 Jan 2010 14:59:17 +0000

The main problem with the principle limit decrease is that many borrowers no longer qualify for a reverse mtg. I think it's over 70% of all r/m's are done to eliminate current mtg's and now, many of those seniors no longer qualify… so that is the main reason for the complaints of the principle limit reduction.

By: RMpaula

RMpaula — Fri, 08 Jan 2010 13:50:55 +0000

I was new to reverse mortgages in 2009, and I have watched the margins increase, values go down, principal limits decrease and now, new obstacles for 2010. The new counseling/testing requirements will cause many people to back off. And the use of national appraisal compaines will likely cause an increase in that upfront cost. I am not feeling as optimistic as Benny Kass of the Washington Post.