Despite Record Low Interest Rates, Data Shows Reverse Mortgage Prepayments Falling

New data published by the Department of Housing and Urban Development shows that despite record low interest rates, reverse mortgage prepayments are falling according to a report from New View Advisors. Hardly in line with conventional mortgage prepayment behavior − which typically rise when interest rates fall because borrowers refinance − the HECM product and […]

Low termination rates on reverse mortgages reported

The first meaningful measurement of reverse mortgage performance, expected to be presented this month to select industry members, will reveal surprisingly low termination rates. The Reverse Market Insight, Inc. “Industry Data Repository” includes information from four of the top 10 reverse mortgage originators in the country and six of the top servicers, according to John […]

Volume Jumps 12% During August, Top Reverse Mortgage Lenders

Reverse mortgage lenders endorsed 6,645 HECM units during August, up 12.6% from July.  It’s the third consecutive month over month increase in volume and signals things could be turning around after an extremely challenging first half of 2010. Overall volume for 2010 is still down 37.7% from the same period last year, but individual lender […]

Census Data Shows Increase in Reverse Mortgages, Big Opportunity Remains

Data from the 2009 American Housing Survey (AHS) shows that while the number of people using reverse mortgages has increased dramatically, there is still plenty of opportunity for growth. Conducted by the US Census Bureau for the Department of Housing and Urban Development (HUD), the survey data shows that the number of homeowners using reverse […]

FIT Data to Help Industry Understand Needs of Reverse Mortgage Borrowers

As part of the Department of Housing and Urban Development’s new HECM Counseling protocols, counselors are required to use the new Financial Interview Tool to help prospective borrowers consider the immediate financial needs and long-term challenges that can make it hard to stay at home and benefit from a reverse mortgage. The tool includes a serious […]

Volume Continues to Increase, Top Reverse Mortgage Lenders

Reverse mortgage lenders endorsed 5,901units during July, up 11% from June and the second month over month increase in volume. Overall volume for 2010 is still down 39% from the same period last year, but endorsements are starting to catch up to the increase in applications the industry has seen since March. As the number of applications continues to rise, […]

Chart of the Day: HECM Fixed Attracts Younger Borrowers, Increases Risk to FHA

The latest in our Chart of the Day series comes from Reverse Market Insight and shows how younger borrowers are turning to the HECM fixed product more than the adjustable rate reverse mortgages. According to RMI, the average age for adjustable rate borrowers was 73.6 compared to 71.7 for fixed rate borrowers in 2009.  With younger borrowers […]

Chart of the Day: Age of HECM Borrowers Dropping Quickly

Reverse Market Insight beat us to the punch with this one.  During the National Reverse Mortgage Lenders Association’s road show last week, John Nixon, an executive at Bank of America said 62 year olds were the most common among recent reverse mortgage borrowers and I was a bit stunned. According to RMI, the average age for […]

MetLife Takes Back Top Wholesale Reverse Mortgage Lender Spot

Wholesale reverse mortgage volume was down 25.8% during May, marking the fourth consecutive month over month decline according to data from Reverse Market Insight. May volume was the lowest in five years and brokers bore the brunt of declining volumes with only 2,058 units says RMI. MetLife was the top wholesale lender in May with 371 units, followed […]

Staying current on reverse mortgages and issues impacting the industry

Industry professionals meeting in California last week at the National Reverse Mortgage Lenders Association’s “Road Show” considered issues ranging from “How to Grow Your Business in a Sluggish Economy” and “New RESPA Rules” to “The Future of the Wholesale/Broker Relationship” and “Ethical Pricing.” Beyond such periodic discussions, the daily challenge for practitioners in the field […]