National Mortgage News recently published an article about the HECM for home purchase program. The article written by Brad Finkelstein details how the new program presents an opportunity for reverse mortgage lenders to help seniors purchase homes.
Generation Mortgage’s chairman, Jeff Lewis, believes the HECM for purchase could be "a healthy percentage" of the company’s volume. However, with the current environment, it’s tough to sell properties and it could have an impact on the decision to move.
Like other lenders in the business, Lewis would also love to see the loan limits for HECMs raised from $417,000. "Now we are grateful to get the improvement, but in a marketplace where there really is no jumbo product available, it would be very helpful, for the short term, to have a significant increase," he said, looking for one to be included in the latest stimulus package working its way through Congress.
But whatever increase there is should be temporary, Mr. Lewis continued. "We would like there to be a government market for people in median-value homes. People with the higher-valued homes, we would like to see the private market service those people. But, in the near term, it is so unlikely that there will be any kind of a jumbo we can provide, that we would like to see the government fill the gap."