The 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.
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.