NRMLA Introduces New Board, Plans for Reverse Mortgage Advocacy

The National Reverse Mortgage Lenders Association welcomed new board members during its recent annual meeting in late October, and bid farewell to several long standing board members who are leaving their posts. Leadership also pointed to some of the work NRMLA has done over the last year, and continues to approach in the coming months.

During the meeting, held in San Diego, NRMLA leadership and board co-chairmen Joe Demarkey and Reza Jahangiri thanked Sherry Apanay of Finance of America Reverse, Paul Fiore of AAG and Mark Browning of HomeChex for their service, and introduced the 2018-2019 board.

They also noted some of the priorities for the association at present time.


“We have been busy over the last year,” said Steve Irwin, NRMLA executive vice president. “We have been operating at our headquarters under a few guiding principles and strategic imperatives. One of the areas we have been focusing on is continuing to advocate on behalf of our membership.”

Among the areas NRMLA has been focused on are communicating with the Department of Housing and Urban Development as well as members of Congress, and finding ways to protect the Federal Housing Administration’s Mutual Mortgage Insurance Fund and reduce volatility within it.

“The outcome we just got with the Collateral Risk Assessment process was a much better outcome than what was on the drawing board before [Commissioner Montgomery] took his seat,” Demarkey, principal member of Reverse Mortgage Funding, said. “Specifically, PLF decreases and MIP increases. That mortgagee letter was, in my opinion, a fantastic one for the industry.”

Co-chair Reza Jahangiri, CEO and founder of AAG, echoed comments about the recent changes, noting that innovation has been positive for the industry, despite causing some pain points.

“[The last year] was a year of stabilization,” he said. “On the bright side, we saw repositioning and innovation and a lot of new proprietary activity.”

At the same time, originators have felt a lot of pain the process, he said.

“For the most part, it’s tough to originate a HECM these days and have it make economic sense. We know we are here for a thesis that is going to come, but we just have not figured out the exact growth model.”

Written by Elizabeth Ecker

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  • Last fiscal year was a year of stabilization?

    It was more like the sixth straight year of slightly downward sloping, hill to valley, secular stagnation. It was the worst year for HECM endorsements since fiscal 2005.

    Yet fiscal 2019 should be an upward leg of the type of secular stagnation we have been experiencing but by all indicators it will be a worse fiscal year for endorsements than fiscal 2018.

    How much worse fiscal 2019 will be than fiscal 2018 is hard to say but the point is, it will not be better than fiscal 2018 when the current trend of secular stagnation indicates it should in the low to mid fifty thousand range. It is unlikely that the endorsements this fiscal year will reach even 48,000 as it did last fiscal year.

    Unless stabilization is more loss, things have at least this fiscal year to go before we can make that claim.

  • I hope one and all had a great Veteran’s Day.

    It is hard to envision how the one-year sunset rule found in Mortgagee Letter 2018-06 took a full year to research and then have HUD adopt. As the Commissioner noted, the Mortgagee Letter appears to be incapable of providing much of a firewall against the losses seen enveloping the HECM portion of the MMIF with each new fiscal year’s book of business. Perhaps this is why there is a one year sunset rule and several points of time that the effectiveness of Mortgagee Letter will be reviewed throughout fiscal 2019.

    Perhaps, those of us who lack faith in the ability of the Mortgagee Letter to stop the growth in losses may be pleasantly surprised and then again, maybe not. In less than 11 months we will know whether or not Mortgagee Letter 2018-06 will be extended beyond September 30, 2019.

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