Friday Round-Up: Reverse Mortgage Volume Starts Strong in 2014

In case you missed it…here’s what happened in reverse mortgage news this week:

CFPB Report Sheds Light on Mortgage Servicing Problems—A report from the Consumer Financial Protection Bureau highlighted problems of “unfair and deceptive” mortgage servicing practices uncovered in 2013.

January Reverse Mortgage Endorsements Up 20% to Kick Off 2014—The new year started off on a strong note for reverse mortgage endorsements, which saw volume growth of nearly 20%. 

Advertisement

Calif. Lawmaker Reconsiders Reverse Mortgage Protection Bill—A formerly tossed bill that would include a “suitability” checklist for reverse mortgage clients may soon see a revival.

CFPB Says “Yes” to HUD’s E-Signed Mortgage Loans—The ability of lenders to accept electronic signatures on Federal Housing Administration mortgage loans will improve the mortgage closing experience for consumers, says the CFPB. 

Philly Enquirer: Reverse Mortgage Requires Research—While a reverse mortgage may appear like a suitable financial tool, an Philly Enquirer article presses its readers to do their research before making any decisions. 

Written by Jason Oliva

 

 

 

Join the Conversation (1)

see all

This is a professional community. Please use discretion when posting a comment.

  • To reach any conclusion about volume on a month to month endorsement basis distorts our current situation. For example, for January 2013, the increase over December 2012 was 32.6%. The volume decrease from January 2013 to January 2014 is 2.5%,

    Beyond that we must look at what is happening in January 2014 that is different from January 2013. Last year there was no major change to the program but this year the elimination of HECM Standards resulted in a large increase in Standard closings in the last calendar quarter of 2013.

    It is disconcerting that endorsements were not substantially higher last month and the annualized conversion rate was for the first time below 60% since FHA began giving us public information from which this percentage could be computed.

    Is the industry in trouble? Were the FHA changes too harsh? Will endorsement volume fall significant lower than it was last year? Will financial assessment make things materially worse? As of yet there are many questions and very few reliable answers.

    Even though there is some measurable discouragement among originators, by and large, there is a positive attitude about what the future holds. Let us hope HUD will reasonably adjust its recent changes (to the extent that the MMI Fund will not be materially effect) in support of more closings.

string(106) "https://reversemortgagedaily.com/2014/02/07/friday-round-up-reverse-mortgage-volume-starts-strong-in-2014/"

Share your opinion