In case you missed it… here’s what happened in reverse mortgage news this week.
FHA delayed the reverse mortgage financial assessment date. In an address to attendees of the National Reverse Mortgage Lenders Association conference in New Orleans this week, Assistant Secretary of Housing Carol Galante said the financial assessment will be pushed back beyond its initial implementation date of January 13, 2014.
Reverse mortgage volume saw a final uptick before an expected deep dive. Year-over-year, reverse volume was up in October with strong metrics across metro areas, according to the most recent data analyzed by Reverse Market Insight. But the good news will be short lived, RMI notes, as volume is expected to fall sharply as a result of program changes implemented on October 1.
Lenders said they’re changing up their marketing messaging. In light of product changes, top-10 lenders AAG, Liberty and RMS told NRMLA conference attendees about plans to market a niche product, rather than to aim for a mass appeal, as has often been the case in the past.
Reverse mortgage growth hasn’t scratched the surface. Despite challenging months ahead with the onset of major product changes, reverse mortgage lenders reported they see major growth potential on the horizon, including penetration rates double or triple the 2% rate where they fall currently.
Texas voters approved the reverse mortgage for purchase product. Completing the reverse mortgage product offerings in Texas, voters decided this week the state will allow the HECM for purchase, making it available in all 50 states.
Written by Elizabeth Ecker