HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
Reverse Mortgage

More Signs Wall Street Wants Reverse Mortgages

With all the subprime problems as of late it should be no surprise Wall Street is showing so much interest in reverse mortgage production.  Reverse mortgages provides Wall Street a high yield, low LTV, and federally insured mortgage product.  While the yield on a reverse mortgage may not be quite as high as your typically subprime loan, risks are slim to none when compared with an option ARM or 2/28 loan.  If you attended the NRMLA conference a few months ago it was evident that Wall Street has lots of interest in reverse mortgage production.

Yesterday Mortgage Data Management Corp. issued a press release that announced the addition of reverse mortgage loans to its due diligence review service offerings.  While the company reviews a variety of mortgage loans, the addition of reverse mortgage loans is a direct response to the sharp increase in the volume of loans as well as the interest MDMC’s clients have shown to purchase these loans in the secondary market.

According to Doug Lackey, principal of Mortgage Data Management Corp, “We strive to meet the ever-changing needs of our clients, so when several of our Wall Street investment bank clients approached us about adding reverse mortgages to our review, we quickly made the adjustment.”  MDMC has been reviewing reverse mortgages since October of 2006 in limited capacity but as of late the company has seen an increase in volume.  Karen Callans who has over 40 years of industry experience has been appointed to review and further develop MDMC’s review procedures to include reverse mortgages. “We spend at least one week a month reviewing reverse mortgages,” explains  Callans.  “As the subprime market continues to slow down, we expect to see more and more business come from reverse mortgages.” 

To see a copy of the press release from MDMC click the link below

MDMC Adds Reverse Mortgages to Due Diligence Review

Technorati tags: , , ,

Most Related Articles

Celink to Pay $4.25 Million to Settle Federal HECM Lawsuit HW+

Compu-Link Corporation (Celink) has agreed to pay a $4.25 million civil settlement to the United States to resolve allegations made by the U.S. Justice Department relating to a False Claims Act violation related to its servicing of Home Equity Conversion Mortgage (HECM) products. This is according to a press release from the United States Attorney’s […]

Jan 01, 2019 By

Latest Articles

HW+ Member Spotlight: Tom O’Donoghue HW+

This week’s HW+ member spotlight features Tom O’Donoghue, owner at Reverse Loans Now. O’Donoghue has been in mortgage banking for more than 30 years and has been helping and committed to working with Senior Citizens for the last seven years. HW Media: What is your current favorite HW+ article and why? Tom O’Donoghue: How inflation could be a net benefit […]

Aug 12, 2022 By