The New York Daily News is reporting that while the number of reverse mortgages originated nationwide fell 35% to 72,683 in 2010, demand is expected to rise with the release of the HECM Saver.
John Lunde, president of Reverse Market Insight, told the NY Daily News he expects reverse mortgage closings this year to climb to between 80,000 and 85,000 nationwide.
Rather than pay off large existing balances, seniors are turning to the Saver to help with things like heating bills, according to Bill Smith, originator for MetLife Home Loans. One client got a HECM Saver to cover the heating bill for her four-story home in Park Slope, Brooklyn.
“She couldn’t sell it at the price she wanted. She is going to sell when the real estate market improves,” Smith said.