In this week’s Reverse Focus podcast, Shannon Hicks discusses the trouble that industry professionals foresee in the secondary market from HUD’s latest proposed lower interest rate caps. The rule would cap the lifetime interest rate increases on all HECM adjustable rate mortgages to 5% over the life of the loan. FHA asserts that the lower interest rate caps will benefit HECM borrowers, but those in the industry are wary of the impact it may have on the secondary market.
Another topic of discussion was about how financial planners, who were once skeptical, now see how the reverse mortgage product could be beneficial to their clients and how some are even adding the product line to their business. The media has become more educated about reverse mortgages, therefore portraying them in a better light.
Hicks also discussed news of AAG now offering their proprietary jumbo reverse mortgage product, the AAG Advantage, to California in the wholesale market. It was originally launched last September, but was only available on a retail basis. Through AAG, California loan officers and brokers will now be able originate the product valued up to $6 million.
The last topic of discussion this week was about experts from a bipartisan policy making group who are pushing to create a lower cost reverse mortgage to better serve the nation’s booming senior population. This new policy would allow borrowers to tap into smaller amounts of their home equity, which could lower the risk for lenders, borrowers and taxpayers.
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- HUD’s proposed lower interest rate caps troublesome for secondary market
- Former skeptics now accepting the reverse mortgage
- AAG’s jumbo reverse comes to the Golden State
- Policy Experts want lower cost reverse mortgage
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 Alana Stramowski