Reverse Mortgage Refinances Up In 2009, Will It Continue?

image Reverse Market Insight published some interesting information about the HECM to HECM refinance boom we saw in January.  The industry experienced the largest ever volume of refinance transactions with 1,078 in the first month of 2009, shattering the former record of 873 in July of 2007.

In Volume vs. Values In New Loan Limit Era, RM Insight shows that Texas saw its first refi boom.  The Lone Star States refi volume jumped to over 70 loans in January, up from roughly 30 units in December 2008.  Other states like California and Florida also saw increases in January. 

See the graph below which shows the production of new and refi endorsements in the top 10 states:

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With the new loan limits of $625,500 in place for the rest of the year, there is a good chance refi volumes will continue to increase. 

“We expect refinances to increase since there are a substantial number of previous HECM loans with appraisal amounts greater than $417K, but we’ll be really interested to see if non-refinance business picks up since we haven’t yet seen that happen with the earlier loan limit increase," said John Lunde, President of RM Insight.  

To read more about the HECM refinance wave, check out the post below.

 Riding A HECM Refinance Wave

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  • This might be a great time to inject a suggestion
    to all involved in the “Reverse Mortgage” Industry, Refy or otherwise. It amazes me to realize that all too many in this business think they are just in the “Mortgage” business. In truth, almost all of you are very, very special people who are really in the business of serious human issues which affect
    Seniors in their last, most challenging days of their
    lives: Medical Bills, Prescription Bills, Home Maintainence Costs, Heat Bills, Food and Clothing
    costs, Loneliness, and even Mental Ilness. Too, I’ve been accused of writing about “politics” on this precious RM website, for Heavans sake. Well, let me tell you Men and Women, Real Life is all about Politics: The Art or Science of influencing Governmental policy. As long as the FHA HECM is a US Government product, we all should take an interest in Politics. In my view, this has to be an Industry filled with compassion and love for Seniors. In closing, if you wish to read what Greed and Dishonesty will do to others, please read the current
    issue (April 09) of Vanity Fair Magazine about the Bernie Madeoff Scandal (two articles).

  • Wow, why don’t we lobby the government to ONLY allow “very very special people” into the reverse mortgage industry. We could even have “VVSP” (very very special people) certification. Of courese assuming that “compassion and love of Seniors” (love of your fellow man not be sufficient)shall we legislate that too as a condition to work in the Reverse Mortage industry. Should I suppose that the “forward” mortage field is NOT dealing with human issues? Only “seniors” have “challlanging issues of medical expenses, home repair, bill, clothing, heating bills etc.” Get real and join the human race.

  • “Matt”, or whoever you really are (Another one of those “bloggers” who is ashamed to use his true name,
    under the guise of “that’s what “bloggers do”–what are you really hiding “Matt”?– that you might be one of those sub-prime boys who helped cause the economic dabacle this Country is in. Fellow, I’ve seen too many already in this RM Industry who only want to deal with Homes of Seniors at the Top County Limit with little or no debt or certainly no maintenance problems that first have to be corrected prior to funding. Most of your comments only show your youthful ignorance.

  • Once again Critic, if you used your true name, I wouldn’t think you had something to hide. Granted, there is plenty of blame to go around. Some of those who work in the Reverse Mortgage Business ARE Special People; others are greedy, money grubbers. Sorry, I’ve
    met them. If there is too much work involved in satisfying a lender’s conditions, they are not interested. All too many want a loan funded in thirty dasys or less from date of application. Finally, don’t give me that nonsense that “Blogging” is a new medium whih allows for anonymity: If you have something worthwhile to say, one should always be willing to attach his real name. Peter Pan Tinker Bell thinks this web site is a meaningful reflection of the Reverse Mortgage the whole World can read: I see nothing honorable about writers who aren’t willing to admit who they really are, regardless of the medium.

  • James,

    You do realize your reading a blog right?

    I’m not sure why you felt this post was the right time to bring up politics, it has taken the comments away from the topic at hand which is refis.

    Also, I’m not sure why every time you leave a comment you feel the need to attack someone or some group of “Bloggers” as you like to say.

    If you don’t agree with someone fine, great, move on… close some loans, help seniors, and thanks for supporting RMD.

  • Mr.Nelson,

    Does EVERYONE but “Mr.Nelson” (if that is your true name) really hiding something? Is everyone who disagrees with you a sub-prime scumb-bag? You need to get your paranoia under control.

    Mr. Nelson, you don’t know me or who I am or what my motives are, which makes sinking to unsubstanciated personal attacks very troubling. Do your immediately assume the worst with all people who contest your theories? Do your treat your “seniors” in tis manner. If so,I wonder if you would qualify for the Very Very Speical Person designation? Or, does dealing with facts only apply in your dealings with “seniors”.

    I have to admit, the “critic” made the point I was trying to make much more equolquently than I.

    We need to stop stereotyping “seniors”. It does “seniors” no favor and only hurts the industry you so zealously defend. We in the mortgage industry have to treat everyone, young and old, rich and poor with fairness and dignity.

    I dare say you make your living in this industry just like the rest of us. So lets’ work together to make it a better place and not automatically assume the worst of each other.

    It would be a positive if the bar to entry into the profession were raised, similar to what we see in the Securities industry. It would solve a world of abuses. The first steps to that are being taking now in the new licensing procedures, so stay calm.

    My experiences with “senior” clients is well summarized by “the Critic”. They are all kinds of people, rich and poor, good money managers and poor, honest people and frauds. We have to treat all fairly and with respect without stereotyping them based on their being over 62 years of age.

    It seems to me that a person who spend his/her life as a spendthrift and gets old becomes a “senior” spendthrift. A person who spends their life lying becomes an old lier, a honest well-intententioned person remains so in their golden years, etc., Becoming a “senior” doesn’t change who a person is or has been their whole life or create an automatic entitlement for them.

    Mr. Nelson, thank you for your imput in this site and the dialogue we all enjoy, we are all richer for it.

  • Thank you “Matt” for your comments: Very well written
    and meaningful. I’ve already even put my toll free number on this web site for skeptics to call; if I’m home, I’ll always answer. And, for your information, I converse as well and plainly as I believe I write, most of the time. Every person has a story of life to tell. In the RM Business when dealing with Seniors, listening to one’s history is the fun of the job. Helping that Senior financially in the last days of his/her life is what makes our work so important. God dictates (and because HE gives us the gift of choice, sometimes our own foolishness) how long each person will live. Working in a capacity where one’s client comes first is Golden, if only in a heartfelt thank you from a needy senior.

  • The point I always try to make, Admin ,is the FHA HECM Industry is not just about “refy” numbers, important they may be to owners of Mortgage Companies or Banks.
    This is an Industry that dramatically impacts Senior
    Homeowner’s lives; all too often that element is missing from your precious website. This Country would, in my opinion, not be in the financial condition today if Investment Bankers, Banks, Mortgage Brokers, Wall Street and the likes of the Bernie Madeoff ilk, and the Regulators (US Treasury,
    S.E.C., and, Yes, HUD/FHA, Fanny Mae and Fredie Mac,
    and Congress and the previous Administration) had been doing their jobs. I remind you, Sir, there are real
    human lives behind what the Press and Others are so quick to lable “toxic assets” as if its some pile of econiomic manure STACKED OUT IN THE MORTGAGE BARNYARD
    The Reverse Mortgage Industry, first and foremost, should never lose sight of the very human faces of the Seniors who make this Industry possible.

  • Mr. Nelson,

    Refi’s are important to the seniors? You make it sound like we are ripping them off? Your comment “The point I always try to make, Admin ,is the FHA HECM Industry is not just about “refy” numbers, important they may be to owners of Mortgage Companies or Banks.”
    The refi’s are important to the seniors!! They need the money to live and with the increase in limits its allowing them even more access to the equity in their homes. You may need to look yourself in the mirror and see if you do believe in the HECM product that you claim to care so much about.
    Blog is a blog. Get over it…you don’t know my identity and never will – that is what blogging is all about. This is about information (that is not available elsewhere) and for ideas not claiming you are “the man”.

  • John Doe or whoever you are, as now structured, I believe Refis are a rip off of a Senior’s equity: FHA should force the Mortgage Industry to only charge
    an origination fee on the difference between the old
    limit and the new: Just as they do for MIP. Even though FHA has raised the limit, thank God they kept
    the $6,000.00 Origination Fee Cap. Seniors need every damn penny of their equity possible. Hell, I’m even for a $1,00.00 Cap–it might run off the too many
    people in this business just for the money.

  • You sound like one of the politicians that doesn’t know how our business works. I am assuming you must be fairly new to the industry with comments like that.
    Companies would not do a loan making 1K? We would all be non-profit organizations at that point. You can have all our loans if it comes to that.
    You are out of your mind…a little dementia kicking in Mr. Nelson?

  • You sound like one of the politicians that doesn’t know how our business works. I am assuming you must be fairly new to the industry with comments like that.
    Companies would not do a loan making 1K? We would all be non-profit organizations at that point. You can have all our loans if it comes to that.
    You are out of your mind…a little dementia kicking in Mr. Nelson?
    Have a good day…I have a HECM-HECM refi to do : ) Talk with you later.

  • John, I’ve never done a refi; to me, the significance of refis is a lot of Seniors are very satisfied with their FHA HECM. I’m all for anything that financially helps and is fair to a Senior. A
    refi you say, John–Good for you. I’m sure the Senior
    will be in good hands with you. Dementia? My wife would agree with you. Non-profit? Unfortunately, a few Mortgage Brokers who thought they were otherwise turned out to be non-profit, recently. A few Banks, too.

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