Wells, Bank of America, and MetLife Make Up 52% of Reverse Mortgage Volume

NewImage.jpgThe Street is reporting that Wells Fargo, Bank of America, and MetLife account for 52% of the reverse mortgage volume in the industry.

According to Reverse Market Insight, the top 10 lenders make up 89% of the market.

The bursting of the real-estate bubble has meant plummeting home prices and a reduction in the value of the properties that collateralize the loans. That has led to a projected $250 million budget shortfall for the FHA’s reverse mortgage program — a gap that could be partially reduced by a $150 million appropriation winding its way through Congress. Last year, the program was in the red by $798 million.

Advertisement

In response to the current environment, the reverse-mortgage market has become increasingly competitive, with numerous lenders reducing or eliminating upfront costs and recurring fees to attract new business.

Wells, Bank of America Go ‘Reverse’ Route

 

 

Join the Conversation (6)

see all

This is a professional community. Please use discretion when posting a comment.

  • From my perspective, NRMLA's wish is to have a growing membership base, and a vibrant, profitable market. Not sure what you are alluding to, reverser.

  • It is the regulators' wish that indirectly benefits NRMLA. Consolidation will insure continued viability of the HECM which benefits NRMLA.

  • The bursting of the real-estate bubble has absolutely nothing to do with the $250 million shortfall FY 2011. It is so silly reading these claims.

    People do not realize that the $250 million FY 2011 budget request has absolutely nothing to do with the book of current or past business. It has everything to do with the HECMs to be endorsed in FY 2011, the home appreciation rate for that year and each year thereafter until the last of these HECMs is projected to terminate under budget assumptions, and the mortgage insurance premiums earned on those HECMs from funding through termination.

    The burst of the housing bubble, what a scape goat.

    • I am sooo tired of all the inaccurate news releases regarding our Industry. I propose all future articles and the stooges that write them go through “The_Critic” before going to print to insure accuracy!

  • I am sooo tired of all the inaccurate news releases regarding our Industry. I propose all future articles and the stooges that write them go through “The_Critic” before going to print to insure accuracy!

string(116) "https://reversemortgagedaily.com/2010/07/23/wells-bank-of-america-and-metlife-make-up-52-of-reverse-mortgage-volume/"

Share your opinion