Reverse Mortgage Volume Shows Growth in 2013

While federally-insured reverse mortgage volume is expected to drop next year in response to extensive program changes, endorsements are expected to grow in subsequent years as the United States population ages, according to actuarial projections. Volume of Federal Housing Administration-guaranteed Home Equity Conversion Mortgage (HECM) endorsements grew from fiscal year 2012 to 2013, but is […]

Chart of the Day: FHA Forward Loans Rise, Reverse Mortgages Lag

Reverse mortgage volume under the Federal Housing Administration’s Home Equity Conversion Mortgage program has fallen year-over-year with a slight decline in the first quarter from the fourth quarter of 2012.  In its quarterly report to Congress, the Department of Housing and Urban Development charted the course of reverse mortgages versus forward mortgages, showing forward loans […]

Chart of the Day: Older Americans Say They’re Staying Put

Older Americans have a strong preference toward staying put, a recent Associated Press-Life Goes study reaffirms. In surveying more than 1,400 adults, the study reports that people feel they are extremely likely or are very likely to stay at home once they reach age 66, and even for those who are 47-65, the majority […]

Why Borrowers Take Reverse Mortgages

Reverse mortgage borrowers are increasingly getting younger according to a recent report by the MetLife Mature Market Institute and the National Council on Aging. Additionally, borrowers are using reverse mortgages for different purposes today versus several years ago. Younger borrowers are using the loans to pay off debt more than in the recent past, the […]

Chart of the Day: HECM Standard vs. Saver Initial Cash Draw

The initial first month cash draw for the HECM Standard far surpasses the first month cash draw for HECM Saver loans, a recent chart created by the Department of Housing and Urban Development depicts. With the saver first month draw at 46.4% of the initial principal limit and at 80.8% for Standard loans, the comparison is […]

Chart of the Day: HECM Initial Principal Volume is On the Rise

The following chart, originally published in Inside Mortgage Finance, charts the volume of initial loan amounts extended to HECM loan borrowers over the course of five quarters. The first quarter of 2011 saw a 4% increase over the previous quarter, while falling short of the first quarter total in 2010 by 4.7%. Chart: HECM Initial […]

Length of Dodd-Frank Rules Taller Than 21+ Statues of Liberty

Implementing Dodd-Frank is leading to a “mountain” of rules—or at least 2.6 Empire State Buildings’ worth when measured by Federal Register pages laid end to end, according to the following Wall Street Journal infographic. Turning the financial overhaul bill into law has consumed more than 3.3 million printed words, which WSJ equates with 16 copies […]

Chart of the Day: 80% of People Wish to Stay in Their Homes Through Retirement

A recent National Reverse Mortgage Lenders Association (NRMLA) survey shows the importance Americans place on staying in their homes into old age. About 80% of people—including those with and without reverse mortgages—say they would like to stay in their houses, and an even greater number of adults with living parents wish for the same long-term […]

Chart of the Day: HECM Rates After the Market Crash

New data from IBIS Software shows the dive rates took when the markets crashed in the fall of 2008. “When, and if, times return to normal, a LIBOR with a 2.50% margin will have a materially higher interest rate than the current fixed-rate HECM offerings,” said Jerry Wagner, CEO of IBIS. If the 10 year […]