With the financial assessment going into effect in one month, Shannon Hicks discusses some of the lingering concerns in the industry.
The new rules set forth by the assessment will be tougher in some ways on those seeking a reverse mortgage than those seeking a forward mortgage, he says, citing an article by The Mortgage Professor.
However, credit qualification on reverse mortgage applicants should reduce the default rates on new loans. But will the financial assessment be too stringent or restrictive for all borrowers?
For reverse mortgage counselors, many agree the assessment will place greater demand on their agencies’ resources, raising ever-looming financial concerns as they ramp up training efforts to prepare for March 2.
In other news, Hicks highlights a community bank lending survey that shows 75% of community banks say new mortgage rules are keeping them from making more residential mortgages in their communities. Tune in to learn more.
Finally, following a spike in home equity conversion mortgage (HECM) endorsements in October 2014, nine of the 10 top lenders saw a decline in volume the following month, reverting back to average volume levels, Hicks notes, citing the latest data compiled by Reverse Market Insight.
For Hicks, the million-dollar question is: What will reverse mortgage endorsements be for 2015, especially after the wake of the financial assessment?
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- No Deadbeats: The Mortgage Professor looks at the Financial Assessment
- Counselors prepare for new hurdes with upcoming assessment
- Community banks stymied by overly strict mortgage rules
- Year end slump in reverse mortgage endorsements
Listen now. “Reverse Focus is the ultimate resource for reverse mortgage professionals providing the technology, training and marketing to grow your business. We are your one-stop resource for those committed to taking their business to the next level.” Editor’s Note: These posts are sponsored by Reverse Focus.
Written by Emily Study