There is a “perfect storm” brewing that could benefit the reverse mortgage industry, says Shannon Hicks in this week’s Reverse Focus podcast. The combination of rising interest rates and home equity lines of credit (HELOCs) nearing the end of their draw period could potentially drive more borrowers to get a reverse mortgage, according to a recent analysis from one reverse lender.
Also discussed, when it comes to reverse mortgage volume or endorsements, it has been a slow and steady slide. For the fourth month in a row, Home Equity Conversion Mortgage endorsement volumes have dropped to their lowest level since September 2014, according to the latest report compiled by Reverse Market Insight. But while industry volume has dropped notably from the recent peak in January, it is not in danger of reaching any “new lows” yet.
In another podcast story, an newly formed alliance plans to educate the general public on reverse mortgages. The strategic partnership between Professional Mortgage Alliance and 3in4 Need More, a nonprofit group, means to produce education materials on the reverse mortgage, while also focusing on educating those who specialize in working with seniors.
Lastly, Hicks discusses a reverse mortgage bill that passed Illinois’ state legislature last week, which would create various consumer protections and establish a three-day “cooling period” for seniors considering reverse mortgages in the Land of Lincoln.
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- Perfect storm to benefit our industry
- Reverse mortgage volumes decline
- Alliance seeks to educate public on reverse mortgages
- Illinois reverse mortgage bill awaits Governor’s signature
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 Jason Oliva