Friday Round-Up: Former AAG Exec Joins RMS, Reverse Mortgages Vs. HELOCs

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

Where Financial Assessment is Impacting Reverse Mortgage Volume the Most—After three solid months of inflated volume, endorsements for Home Equity Conversion Mortgages (HECMs) finally felt the impact of the Financial Assessment in September. But while the industry saw volume drop nearly 19% during the month, the post-FA fallout hit some markets hard, while others actually saw production increase.

AAG’s Mullins Takes New Reverse Mortgage Leadership Role at RMS—Former American Advisors Group (AAG) executive Christopher Mullins has joined Reverse Mortgage Solutions, Inc. as the company’s new President. Mullins previously served as chief operating officer at AAG from June 2009 to April 2015.

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HuffPost: Reverse Mortgage Credit Line Helps When HELOCs Can’t—The line of credit feature on a reverse mortgage can help aging homeowners in a number of ways during retirement, but so can their traditional “cousin,” the home equity line of credit (HELOC). As a result, it is important for consumers to know the distinct differences between these products and how each one might best fit their unique needs, says a recent article published by the Huffington Post.

HUD Extends Deadline for Default Reverse Mortgages—Again—The Department of Housing and Urban Development (HUD) is giving reverse mortgage lenders until January of next year to submit due and payable requests on HECMs in default due to unpaid property charges, the federal agency announced late Friday via a mortgagee letter.

Reverse Mortgage Lenders Enter ‘New Era’ for Volume Post-Financial Assessment—August was the last—and highest—month for HECM endorsements in 2015 before the reverse mortgage industry felt the real impact of the Financial Assessment on volume. And on the wholesale side, the pre-FA volume ride translated into some huge growth for the channel, according to the latest industry data tracked by Reverse Market Insight (RMI).

Written by Jason Oliva