Despite coming with its own set of reverse mortgage quirks, such as having been the last state to approve the Home Equity Conversion Mortgage for Purchase, the state of Texas is upholding a strong record overall.
Texas, which last year voted to amend its constitution to allow for the HECM for purchase, and this week is hosting its 13th annual Reverse Mortgage Day of Texas, is also celebrating an important accomplishment: zero reverse mortgage enforcement actions.
According to a letter sent from the Texas Department of Savings and Mortgage Lending, the state has not recorded any reverse mortgage enforcement actions in the last six years. Additionally, there are no outstanding complaints or current investigations regarding reverse mortgages.
“Texas has been very fortunate to have a Legislature that really understands the reverse mortgage business,” says Scott Norman, National Retail Sales vice president for Urban Financial of America and a longtime reverse mortgage advocate in Texas. “Just as important, evidence suggests that our regulators have a zero tolerance policy when it comes to mortgage lenders who are not conducting their business properly.”
Texas has maintained its position as the second-most populous reverse mortgage state by volume with 1,963 loans to date this year, down about 30% over last year, according to the latest Reverse Market Insight analysis. Texas is second to California, which counted 4,711 loans in the same period.
Written by Elizabeth Ecker