Genworth Financial Home Equity Access (GFHEA) is temporarily eliminating a range of reverse mortgage products offered through its wholesale and correspondent channels, the company announced late Wednesday night in an email to customers that was obtained by RMD.
The products include adjustable rate HECMs (both the Standard and Saver) as well as fixed rate HECM products for manufactured homes.
The company said the changes were effective immediately for closed loan and broker channels until market conditions allow for GFHEA to reintroduce the offerings. No new applications will be accepted until further notice.
For brokers who have loans in the pipeline with GFHEA, the change causes concern in cases where loan types that have been discontinued have not yet closed.
“Any applications received by GFHEA that do not have closing documents drawn by 10/19/2011 will have to be moved to a fixed rate product offering,” the email stated.
Brokers who spoke with RMD expressed concern that a fixed rate loan may not be appropriate in all cases, and that the decision would cause a delay in their loan pipelines as well as for borrowers waiting for loans to close.
RMD contacted GFHEA for more information, but our requests had not been answered as of press time.
The company rolled out a closed loan seller program in early July, which allowed its customers to sell loans to GFHEA while maintaining existing broker responsibilities in addition to closing and funding their own loans. Its wholesale business currently comprises 12.3% of the industry’s market share, according to data from Reverse Market Insight.
GFHEA has not made any statement regarding its retail channel.
RMD will provide updates as more information is made available.
Written by Elizabeth Ecker