After Five Month Surge, Reverse Mortgage Applications Down 1.4% During July

NewImage.jpgThe number of seniors taking out reverse mortgage applications fell 1.4% from June, coming in at 8,961 units during July according to a report from the Federal Housing Administration.

It’s the first decrease in the number of HECM applications after five consecutive months of increases.  For FY 2010, applications for reverse mortgages are down 44.3%.

During July, FHA endorsed 144,514 single-family mortgages for $25.9 billion. The total number of cases included 108,608 purchases money mortgages and 30,005 refinance mortgages.  Additionally, there were 5,901 reverse mortgages endorsed, up 11.3% from June.  For FY 2010, HECM endorsements are down 40%.

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First time home buyers accounted for 78.6% of the purchase cases. For the refinance transactions, 11,005 were prior FHA’s and 19,000 were conventional conversions to FHA. There were also 12 H4H mortgages insured.

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  • Mr. McKeon,rnrnYou need to be a part of NRMLA and attend its conferences and meetings. You are accusing the wrong party. HUD has consistently fought in behalf of the HECM program and seniors.rnrnEven though you have the right to rant and vent, please do so on the proper party. HUD is not the guilty party here. Please read the July 2009 GAO report. You will be surprised what occurred. What is not in that report is why.rnrnI hope you are responsible enough to apologize to HUD for your accusations. These kinds of attacks are very discouraging to those who fight so hard in our behalf. If you follow what I have written over the last year, I am very, very positive towards HUD but very negative about the budget decisions of OMB. I hope you will join me in that assessment.

  • Ms. Howard,rnrnI am pleased with how slow HUD is going when it comes to coops. FHA is not working on the mortgage details; it is working on the insuring issues.rnrnAs both a U.S. taxpayer and a HECM loan originator, I would hate to see the insurance fund negatively impacted by ignoring the tremendous risk differences between coops and real estate. We all know that in the same projects, coop resale values are as a general rule significantly lower for a coop than a condo even if the units are identical.rnrnWhere I differ with HUD and even my own trade association is in holding out hope that the Mortgagee Letter will be released as of a specific date and that everything will be all right once HUD issues a Mortgagee Letter. HUD could release the ML right now but very few, if any, reverse mortgage lenders would originate coops based on the new risks that would be passed on to the lenders and ultimately to investors.rnrnI have been told by several people, that the coop homeowners associations in your location looked at converting to condos for several years. The problem has been and continues to be, the huge cost in doing so. That in itself says a whole lot.rnrnI genuinely hope that we see HECMs on coops in the near term but it must be done so that FHA is protected and no new significant risks are passed on to investors. How that can be done requires the wisdom of Solomon; I am not Solomon.rnrnrnrnrnrn

  • Did HUD ever consider the decrease in applications for HECM beginning in JAnuary 2010 was the result of the 10% loss of net principal limit?rnThe seniors were hurt by the market crash in 2008 & 2009 – then comes the 10 decrease tjat HUD attempts to justify by using the 2008 sum-prime mortgage debacle. Seniors don’t think the same way as younger generations – they want to stay in their homes. Some got HECMs to avoid foreclosure on their forward mortgages. The government saved the banks why not think about helping its senior homeowners instead of preying on them?

  • REVERSE MORTGAGES could have an even greater surge if the HUD secretary would only implement the law of over two years ago that included the requirement for owner-occupied stock cooperative owners. Many of these 429,000 (per US Census Bureau) owners are hurting and losing homes for lack of reverse mortgage opportunity decreed by law in July 2008 and signed by President George W. Bush. Our HECMs for CO-OPs GROUP at Laguna Woods CA sent HUD secretary over 30 petitions requesting implementation over two months ago, but the he has so far failed to even acknowledge receipt. Please SOMEONEu2014tell the HUD secretary we’re out here. nBarbara B. Howard

  • It seems the trend in HECM endorsements over several months is much more closely tied to the trend in endorsements during this period than several of us believed to be true. However, to view the trend information as much more can be a big mistake. Some have been planning their marketing as if the upward trend would continue indefinitely. Hopefully the trend will not plateau or go down over where it currenly is, this fall.rnrnHopefully the HECM Saver applications will begin to substantially uplift the application trend before April next year. It is up to us to move the HECM Saver product forward. rn

  • Mr. McKeon,rnrnYou need to be a part of NRMLA and attend its conferences and meetings. You are accusing the wrong party. HUD has consistently fought in behalf of the HECM program and seniors.rnrnEven though you have the right to rant and vent, please do so on the proper party. HUD is not the guilty party here. Please read the July 2009 GAO report. You will be surprised what occurred. What is not in that report is why.rnrnI hope you are responsible enough to apologize to HUD for your accusations. These kinds of attacks are very discouraging to those who fight so hard in our behalf. If you follow what I have written over the last year, I am very, very positive towards HUD but very negative about the budget decisions of OMB. I hope you will join me in that assessment.

  • Ms. Howard,rnrnI am pleased with how slow HUD is going when it comes to coops. FHA is not working on the mortgage details; it is working on the insuring issues.rnrnAs both a U.S. taxpayer and a HECM loan originator, I would hate to see the insurance fund negatively impacted by ignoring the tremendous risk differences between coops and real estate. We all know that in the same projects, coop resale values are as a general rule significantly lower for a coop than a condo even if the units are identical.rnrnWhere I differ with HUD and even my own trade association is in holding out hope that the Mortgagee Letter will be released as of a specific date and that everything will be all right once HUD issues a Mortgagee Letter. HUD could release the ML right now but very few, if any, reverse mortgage lenders would originate coops based on the new risks that would be passed on to the lenders and ultimately to investors.rnrnI have been told by several people, that the coop homeowners associations in your location looked at converting to condos for several years. The problem has been and continues to be, the huge cost in doing so. That in itself says a whole lot.rnrnI genuinely hope that we see HECMs on coops in the near term but it must be done so that FHA is protected and no new significant risks are passed on to investors. How that can be done requires the wisdom of Solomon; I am not Solomon.rnrnrnrnrnrn

  • Did HUD ever consider the decrease in applications for HECM beginning in JAnuary 2010 was the result of the 10% loss of net principal limit?rnThe seniors were hurt by the market crash in 2008 & 2009 – then comes the 10 decrease tjat HUD attempts to justify by using the 2008 sum-prime mortgage debacle. Seniors don’t think the same way as younger generations – they want to stay in their homes. Some got HECMs to avoid foreclosure on their forward mortgages. The government saved the banks why not think about helping its senior homeowners instead of preying on them?

  • REVERSE MORTGAGES could have an even greater surge if the HUD secretary would only implement the law of over two years ago that included the requirement for owner-occupied stock cooperative owners. Many of these 429,000 (per US Census Bureau) owners are hurting and losing homes for lack of reverse mortgage opportunity decreed by law in July 2008 and signed by President George W. Bush. Our HECMs for CO-OPs GROUP at Laguna Woods CA sent HUD secretary over 30 petitions requesting implementation over two months ago, but the he has so far failed to even acknowledge receipt. Please SOMEONEu2014tell the HUD secretary we’re out here. nBarbara B. Howard

  • It seems the trend in HECM endorsements over several months is much more closely tied to the trend in endorsements during this period than several of us believed to be true. However, to view the trend information as much more can be a big mistake. Some have been planning their marketing as if the upward trend would continue indefinitely. Hopefully the trend will not plateau or go down over where it currenly is, this fall.rnrnHopefully the HECM Saver applications will begin to substantially uplift the application trend before April next year. It is up to us to move the HECM Saver product forward. rn

  • It seems the trend in HECM endorsements over several months is much more closely tied to the trend in endorsements during this period than several of us believed to be true. However, to view the trend information as much more can be a big mistake. Some have been planning their marketing as if the upward trend would continue indefinitely. Hopefully the trend will not plateau or go down over where it currenly is, this fall.rnrnHopefully the HECM Saver applications will begin to substantially uplift the application trend before April next year. It is up to us to move the HECM Saver product forward. rn

  • REVERSE MORTGAGES could have an even greater surge if the HUD secretary would only implement the law of over two years ago that included the requirement for owner-occupied stock cooperative owners. Many of these 429,000 (per US Census Bureau) owners are hurting and losing homes for lack of reverse mortgage opportunity decreed by law in July 2008 and signed by President George W. Bush. Our HECMs for CO-OPs GROUP at Laguna Woods CA sent HUD secretary over 30 petitions requesting implementation over two months ago, but the he has so far failed to even acknowledge receipt. Please SOMEONEu2014tell the HUD secretary we’re out here. nBarbara B. Howard

    • Ms. Howard,rnrnI am pleased with how slow HUD is going when it comes to coops. FHA is not working on the mortgage details; it is working on the insuring issues.rnrnAs both a U.S. taxpayer and a HECM loan originator, I would hate to see the insurance fund negatively impacted by ignoring the tremendous risk differences between coops and real estate. We all know that in the same projects, coop resale values are as a general rule significantly lower for a coop than a condo even if the units are identical.rnrnWhere I differ with HUD and even my own trade association is in holding out hope that the Mortgagee Letter will be released as of a specific date and that everything will be all right once HUD issues a Mortgagee Letter. HUD could release the ML right now but very few, if any, reverse mortgage lenders would originate coops based on the new risks that would be passed on to the lenders and ultimately to investors.rnrnI have been told by several people, that the coop homeowners associations in your location looked at converting to condos for several years. The problem has been and continues to be, the huge cost in doing so. That in itself says a whole lot.rnrnI genuinely hope that we see HECMs on coops in the near term but it must be done so that FHA is protected and no new significant risks are passed on to investors. How that can be done requires the wisdom of Solomon; I am not Solomon.rnrnrnrnrnrn

  • Did HUD ever consider the decrease in applications for HECM beginning in JAnuary 2010 was the result of the 10% loss of net principal limit?rnThe seniors were hurt by the market crash in 2008 & 2009 – then comes the 10 decrease tjat HUD attempts to justify by using the 2008 sum-prime mortgage debacle. Seniors don’t think the same way as younger generations – they want to stay in their homes. Some got HECMs to avoid foreclosure on their forward mortgages. The government saved the banks why not think about helping its senior homeowners instead of preying on them?

    • Mr. McKeon,rnrnYou need to be a part of NRMLA and attend its conferences and meetings. You are accusing the wrong party. HUD has consistently fought in behalf of the HECM program and seniors.rnrnEven though you have the right to rant and vent, please do so on the proper party. HUD is not the guilty party here. Please read the July 2009 GAO report. You will be surprised what occurred. What is not in that report is why.rnrnI hope you are responsible enough to apologize to HUD for your accusations. These kinds of attacks are very discouraging to those who fight so hard in our behalf. If you follow what I have written over the last year, I am very, very positive towards HUD but very negative about the budget decisions of OMB. I hope you will join me in that assessment.

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