[Poll] How Much Has the Financial Assessment Impacted Loan Volume?

Following its late April implementation, the reverse mortgage financial assessment has been in place nearly 60 days.

Many originators have developed new practices for originating to accommodate the new rules, and others report seeing a large decline in qualifying loans under the financial assessment.

Originators weighed in on early estimates as to how much they anticipated the new rule would affect loan volume, and now RMD wants to learn how much it has actually led to a shift in loan volume for our readers.

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Please tell us via the following poll how much the financial assessment has affected your loan volume.

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  • Elizabeth,

    Survey results are only as good as what they attempt to measure. Sixty days is insufficient time to tell what is really happening.

    The term “loan volume” is far too imprecise. To some that means signed applications, to others it is applications with case number assigned but what the survey should be measuring is number of closed loans which underwent financial assessment. The question should be: What is the decline you have experienced in closed HECMs due to financial assessment?

    To me the only number that counts is closed loans. Everything else may be meaningful but we have no idea on the pull through rates of signed applications to case number assignments or from case number assignment to closing but we all have a rather strong grip on what it means to have a closed HECM of yesteryear or today.

    Finally has anyone seen an increase in closed HECMs despite (or due to) financial assessment? Some ultra optimists claimed that they expected exactly that result.

    We will not see change, if any, in endorsements until at least August if not September.

    • I agree with you, The_Cynic. This should be based on loans actually closed post financial assessment. Furthermore, once a big change has taken place in the industry, there is always an adjustment period during which “loan volume” seems to slow down for a bit. I believe this survey should be taken again several months from now if it is going to be even remotely accurate.

  • Will some be regretting what they predicted?

    For example, “‘Our belief is we’re probably not going to see more than a 3-5% impact, which is minimal to us,’ says … of 1st Reverse Mortgage USA, a division of Cherry Creek Mortgage Company.’ ‘Because of our background in forward mortgage lending, from an underwriting and risk management standpoint, philosophically it’s kind of a non-event for us.’” —

    http://reversemortgagedaily.com/2015/01/19/lenders-brace-for-impact-of-reverse-mortgage-financial-assessment/

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