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HUD Pleased with HECM Changes, Retirees Forced to Consider Home Equity

ReverseFocusReverse Focus Weekly Podcast Episode #413

In this week’s Reverse Focus podcast, Shannon Hicks discusses the positive impact of the new and improved HECM program. HUD is ‘very pleased’ with the program mainly because of the new protections that took effect last year, which include the non-borrowing spouse protection. HUD also hinted that a new rule for reverse mortgages will be released in the coming weeks.

Hicks also discussed a recent policy forum that took place in Washington D.C., where officials said that they see promise in reverse mortgages for retirement planning. They explained that 50% of all homeowners over 62 are house rich and cash poor, meaning over half of their net worth is held in home equity. This will push a lot of people to consider home equity who may not have before, according to one official with the Bipartisan Policy Center.

Another topic of discussion was about ways the reverse mortgage industry can grow. Hicks talks about how the industry is still trying to come back from the housing crash and recession. Although there is an 8.4% year-over-year decline in reverse mortgages, there were three ways discussed on how the industry can grow and bounce back over time.

The last topic of discussion in this week’s podcast was about growing your HECM for purchase business. There are a lot of people over 62 who are not necessarily looking to stay in their current home. More than 5.1 million homes were sold in 2014 and 14% of those homes were sold to people over 62, according to recent data from the National Association of Realtors. Hicks discusses how one HECM for Purchase expert increased his business and built a reputation as an expert in the industry.

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Talking Points:

  • HUD “very pleased” with HECM changes
  • Think Tank says retirees will be forced to consider home equity
  • Three ways our industry can grow
  • 5 ways to grow your HECM for Purchase business

Listen nowReverse 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