FHA Report: Value of HECM Program Hit Hard by Home Price Projections

The estimated value of the Federal Housing Administration’s reverse mortgage program fell by $1.4 billion over the last year according to the latest actuarial review published by the Department of Housing and Urban Development. “Our projections indicate that, as of the end of FY 2010, the HECM portion of the MMI fund will not have […]

US Home Prices Fall in September says S&P Case Shiller

After rising 4.7 percent in the second quarter, home prices in the US fell 2 percent in the third quarter of 2010 according to S&P/Case-Shiller data. Prices have moved up 0.6 percent in the past year, down from 1.7 percent in August, making it the fourth consecutive month where annual growth rates moderated from the […]

Wholesale Reverse Mortgage Volume Down 4.3% in September, MetLife Holds Top Spot

Reverse mortgage volume fell 10.4% during September, but brokers saw production fall less than direct lenders according to data from Reverse Market Insight.  Overall volume for retail/direct lenders fell 14.2% while broker endorsements were down only 4.3%. “One month isn’t going to change the tide of regulation and resulting transformation of some brokers consolidating into direct […]

New HUD Website Provides Detailed Economic and Housing Data

The Department of Housing and Urban Development released a new website that provides a detailed look at economic and housing data at a regional, state, metro and county level. Using data from the Census Bureau, Labor Department, State and Local governments, housing industry sources, as well as HUD’s own field economists, the new website employs […]

Knight Aims to Control 20% of Reverse Mortgage Market by 2013

During its annual conference call with analysts and investors, Jim Smyth, EVP, Senior Advisor and Senior Relationship Officer at Knight Capital Group said the company sees big potential in the purchase of Urban Financial. “While the business has already added value to the franchise, we believe that there is a significant upside as we aim […]

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 […]

Applications Rise But Reverse Mortgage Volume Falls 11.5% in October

Reverse mortgage lenders endorsed 5,279 HECM units in October, down 11.5% from September.  According to Reverse Market Insight, the decline was widespread, with the Southwest and Great Plains seeing the only increases during the month. Considering that the number of applications has been rising consistently, it’s a disappointing month. Looking at the chart of applications […]

FHA Audit Shows Credit Quality Improvement, HECM Liability Increase

The latest independent audit of the Federal Housing Administration shows the agency experienced better than anticipated credit quality of borrowers and an improved house price appreciation forecast in the short term. The audit, prepared by Clifton Gunderson, estimates the liability for the Mutual Mortgage Insurance (MMI) decreased from $28,456 million at the end of fiscal […]

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 […]

Data Shows Big HECM Saver Opportunity, But Adoption Could Be Slow

A look into data from the 2009 American Housing Survey shows there is plenty of opportunity for the Federal Housing Administration’s new HECM Saver, but lenders say it could take some time before the new product catches on. As an industry, reverse mortgage lenders have become fairly successful at reaching borrowers looking to pay off […]