A quick reminder that Reverse Mortgage Daily and Stephen Kinney are presenting another free telephone seminar on October 1^st at 12PM (EST).

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As a follow up to last weeks post about rates, Jerry from Ibis sent out an update which gives you a better idea of how the uncertainty in the market is affecting HECM rates.  Ibis estimates that the 10-year Constant Maturity Treasury rate will go from 3.54% to 3.84%. The 10-year Swap rate could go from 4.17% to 4.52%.  The tables below show the effect of the 1/8% notches in HECM lookups on a average HECM borrower — that’s age 73 with a $250,000 claim amount.

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A few reverse mortgage headlines from the week:

• Can Senior Citizens Still Find a Reverse Mortgage with New Credit Crunch? (SeniorJournal)
• Prop up your dwindling retirement account balance (MSNBC)
• Retirement Expert Says Reverse Mortgages Remain Safe and Viable Alternative (MarketWatch)
• Media Drawing Attention to Plight of the Retirees as Retirement Accounts Threatened (SeniorJournal)

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Wholesale reverse mortgage lenders continue to eliminate their HECM Advisor program due to HUD officially killing it with their recent mortgagee letter.  There are plenty of people who used the program responsibly but many feel the HECM advisor program was to blame for some of the problems our industry has faced with unscrupulous lenders.  Overall I think the elimination of the program in a good sign because it shows that HUD is starting to implement provisions from the housing Bill that was signed into law in July.

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Jerry Wagner from Ibis sent out an interesting email about where rates might be headed… see below.

1. The HECM locked rate is as of the date the borrower signs the App.;
2. The HECM Principal Limit Factor lookup table use rates to the nearest one-eighths and
3. Today’s rates are good until Monday evening the 29th.

And looking at the first four days of this week’s rates, the 10-year CM Treasury weekly average is likely to go up by 29 bp on Tuesday, and the 10-year swap rate weekly average is likely to go up by 36 bp.

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