In case you missed it…here’s a recap of reverse mortgage news this week:
We reported on a Cantor Fitzgerald study which calls reverse mortgage market growth potential “Enormous.” Over the course of 22 years and $95 billion of HECM loans insured by the Federal Housing Administration, the U.S. has become the world’s most developed reverse mortgage market, according to Cantor’s research.
Elizabeth Warren told the Daily Show’s Jon Stewart that the CFPB’s fight “isn’t over.” Warren, who is currently tasked with setting up the Consumer Financial Protection Bureau scheduled to launch on July 21, appeared on The Daily Show on Tuesday, saying “the fight isn’t over.”
HUD issued counseling FAQs following slashed funding. A Department of Housing and Urban Development-issued Frequently Asked Questions document addresses the recent budget cuts that will effectively put an end to HUD housing counseling funding, which has previously assisted counseling agencies that provide reverse mortgage counseling services.
The New York Daily News reported on an RMI prediction that reverse mortgage closings will rise above 80,000 units this year. The newspaper reported 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. The article quoted a Reverse Market Insight estimate on the number of closings for 2011.
…and home prices fell, nearing a double dip, in February. Home prices fell 3.3% year-over-year in February, according to the latest 20-city composite Home Price Indices data from Standard & Poor’s and Case-Shiller. The 20-city composite value is essentially where it was in its April 2009 trough, according to the index and prices for the 10- and 20-city composites are lower than they were a year ago but are still slightly above their April 2009 low.
Written by Elizabeth Ecker