In case you missed it… here’s what happened in reverse mortgage news this week.
Walter Investment announced it is acquiring Security One. In what could amount to a $31 million transaction, Walter, which recently acquired RMS, will acquire Security One in an all-cash deal. The deal is expected to close in the first quarter of 2013.
Analysts: FHA reverse mortgages are here to stay. FHA will avoid the wrath of AARP and keep offering reverse mortgages wrote Wall Street analysts of FHA’s recent statements in support of changes to the fixed rate standard reverse mortgage program.
Fiscal cliff crisis averted… for the mortgage market. In a last minute deal to avert falling off the fiscal cliff, Congress voted in favor of provisions to help homeowners including extensions of both the Mortgage Debt Forgiveness Relief Act and the Mortgage Interest Deduction for one year.
Reverse mortgage volume posted low annual totals. Falling nearly 23% in calendar year 2012, a rebound for reverse mortgage volume looks very uncertain pending unknown changes coming down the pike from FHA, according to Reverse Market Insight. The annual total for 2012 landed just shy of 53,000.
FHA landed a new commissioner. After garnering suport from the Senate, former Acting Commissioner Carol Galante was confirmed this week as the housing administration’s chief.
Written by Elizabeth Ecker