An article from Reuters talks about the possibility of former subprime loan officers moving into the reverse mortgage industry after all the subprime problems as of late. According to the article, there are between 12,000 to 15,000 loan officers that may start to look towards the reverse mortgage market for employment. At the Mortgage Bankers Association Conference in New York, Jefferey Taylor, Wells Fargo’s vice president of senior products said, “A percentage of them will migrate into the reverse mortgage business, but it’s very specialized.”
The article also mentions the growing concern that the market’s rapid growth may make reverse mortgages more vulnerable to fraud and increased litigation. Rolf Edwards, a vice president at Goldman Sachs & Co. said, “As you look at what’s going on in the subprime market, are those the types of folks who are really appropriate for pursuing reverse mortgages?” I agree that with the rapid growth of the reverse mortgage market, the risk for fraud will be more prevalent and it will be interesting to see the different steps lenders take to combat the problem.
If you would like to read a copy of the article click the link below.