Chart of the Day: HECM Counseling Levels Trending Upward

Reverse mortgage counseling remains steady, indicates data from Ibis Software Corporation, released in February. The data, which tracks monthly RMA counseling, applications and endorsements (see chart) shows the number of people receiving counseling using Ibis’s software has leveled above 10,000 per month, with an average of roughly 11,500 over the past six months. “In counseling, […]

Chart of the Day: Obama Budget Forecasts HECM Volume Down 17% in 2012

Released earlier this week, Presdient Obama’s budget projects a $1.65 trillion deficit this year and includes $1.1 trillion in deficit-reduction measures over the next 10 years, with two-thirds of those savings coming from spending cuts and one-third from tax increases. While the budget shows the HECM program no longer requires a subsidy from Congress, it also projects […]

Chart of the Day: Which Borrower Draws More From Their Reverse Mortgage?

A new chart from Reverse Market Insight shows that single male borrowers exhibit consistently higher usage of reverse mortgages compared to females or multiple borrowers. According to RMI, the amount of cash borrowers draw at closing and over the life of the loan has become increasingly important given the reliance on HECM MBS securitization.  “Utilization […]

Chart of the Day: Average HECM Borrower Prepayment Speeds

When it comes to reverse mortgages, loan age isn’t as important as borrower age as far as being a strong driver of prepayment rates.  As borrowers get older, the odds of the loan prepaying continues to increase. According New View Advisors, data shows that for seasoned HECM loans, 64 year-old borrowers have prepaid at a […]

Chart of the Day: Value of the HECM Portfolio? $5.8 Billion in 2017

The latest actuarial report of the Federal Housing Administration’s reverse mortgage program shows estimates of the overall economic value of the HECM portfolio will fall to negative $503 million in fiscal year 2010 but increase to $5.8 billion in 2017. According to the report, the increase in value is most significant between FY 2010 and FY 2011 […]

Chart of the Day: FHA’s Reverse Mortgage Volume Projections

The Department of Housing and Urban Developement published the actuarial report for the HECM program and revealed the Federal Housing Administration’s volume predictions for the future. According to the report, with the introduction of the HECM Saver option in FY 2011, FHA projects the number of reverse mortgages to increase by 6 percent to 85,217 in […]

Chart of the Day: Prepayment Speeds of HECM vs. Private Reverse Mortgages

Prepayment speeds for non-conforming reverse mortgages have always been higher than HECM products according to New View Advisors.  The company’s prepayment index shows that HECM prepayment speeds have stayed relatively even over the years and has fallen with the collapse in home values. Jumbo reverse mortgages are a whole different story.  As you can see […]

Chart of the Day: Philadelphia Bucks the Downward Reverse Mortgage Trend

Despite reverse mortgage volume being down 31% during fiscal year 2010, Philadelphia has managed to see an increase in volume according to data from Reverse Market Insight. According to RMI, Philadelphia is the only city in the top 10 growing year to date (4.3%).  So why is the city of brotherly love seeing more volume than others?  Refinance […]

Chart of the Day: Most Popular Payment Plan for HECM Borrowers?

While we already know that borrowers are overwhelmingly choosing the fixed rate product, but what about the ARM product?  The latest in our Chart of the Day series looks at what type of payment plan reverse mortgage borrowers choose on adjustable rate reverse mortgages. According to data from Reverse Market Insight, younger borrowers overwhelmingly choose […]