Production of new reverse mortgage loan pools declined in October to roughly $325 million in issuance, down from $360 million in September and $344 million in August, according to data compiled by New View Advisors. This decline in new issuance counters recent arguments that a reverse mortgage recovery is underway following program changes implemented in October 2017.

Home Equity Conversion Mortgage-backed securities (HMBS) float grew in October. This small uptick is largely due to issuance of highly seasoned collateral, New View noted, including that despite more than $1 billion in payoffs, HBMS ended the month totaling $55.5 billion, up slightly from $55.3 billion at the end of September. Much of this issuance has been completed by Reverse Mortgage Funding, without which, float would have breached $55 billion on the downside.

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The National Reverse Mortgage Lenders Association welcomed new board members during its recent annual meeting in late October, and bid farewell to several long standing board members who are leaving their posts. Leadership also pointed to some of the work NRMLA has done over the last year, and continues to approach in the coming months.

During the meeting, held in San Diego, NRMLA leadership and board co-chairmen Joe Demarkey and Reza Jahangiri thanked Sherry Apanay of Finance of America Reverse, Paul Fiore of AAG and Mark Browning of HomeChex for their service, and introduced the 2018-2019 board.

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With a rapidly aging population, rising interest rates, and forward loan officers looking for alternatives for their borrowers, 1st Reverse Mortgage USA is working to bridge the gap between forward and reverse lending.

Currently ranked 16 on the Top HECM Lenders list from Reverse Market Insight, 1st Reverse Mortgage USA is the reverse mortgage division of Cherry Creek Mortgage Company. In addition to being a division of Cherry Creek, last year 1st Reverse Mortgage USA launched 1st Mortgage Solutions USA, which offers conventional, FHA, and VA loans.

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Redding, CA-based mortgage sales and management firm Reverse Focus, Inc. has created a new online platform that offers lead generation and borrower education, designed for both originators and borrowers.

The site, MyLoanOfficer.US, is designed to feature easily-digestible information about the reverse mortgage product, while also offering users the ability to make connections with originators through “multiple channels,” as described in a press release announcing the site’s launch.

It will also allow originators to spread awareness about their brands through a dedicated online platform featuring an intuitive user interface and search engine optimization (SEO).

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Because steering is strictly prohibited in the Home Equity Conversion Mortgage world, there is little opportunity for counselors and originators to communicate. But during a panel discussion at the National Reverse Mortgage Lenders Association conference last month, reverse mortgage counselors offered their insights on current trends they are seeing via counseling sessions.

Counselors on the panel agreed that there has been a growing number of clients being counseled on HECM for purchase and HECM-to-HECM refinance transactions, as well as proprietary reverse mortgages.

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The Department of Housing and Urban Development will offer multiple reverse mortgage pools for sale in December, secured by roughly 1,150 single-family vacant properties with a loan balance of $230 million, according to an entry in the Federal Register. According to the entry, the sale will consist of due and payable reverse mortgages, held by HUD, in which all borrowers are deceased and no borrower is survived by a non-borrowing spouse.

The Bidders Information Package will be made available on November 14, the entry states, and is expected to be made available to all qualified bidders. In terms of the timeline for acceptance of an offer, bids for the HVLS 2019 will be accepted on the bid date of December 12. The agency expects that awards will be made on or about December 13.

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As complex servicing issues regarding non-borrowing spouses continue to challenge reverse mortgage originators, servicing experts offered their guidance on updates to Home Equity Conversion Mortgage servicing at the National Reverse Mortgage Lenders Association conference last month.

As many loan originators continue to be a main source of loan-related support long after the reverse mortgage is originated, Gail Balettie, senior vice president at Celink, said it is important for loan originators to be familiar with all of the updates.

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