Jumbo Reverse Mortgage Helps Couple Sidestep FHA Condo Hurdles in SF

The rise of the proprietary reverse mortgage has been trumpeted a key industry response to lower principal limit factors enacted last year, but a San Francisco couple used Finance of America Reverse’s private HomeSafe product to avoid another pesky Department of Housing and Urban Development rule: restrictions on condos. The unnamed buyers took out a […]

Amid Reverse Mortgage Uncertainty, Originators Share Top Ideas for Change

In a landscape fraught with declining origination figures and new rules, reverse mortgage lenders have more than a few suggestions for improving the product central to their business. Many would start with at least some reversal of the program changes from the Department of Housing and Urban Development, which last fall inaugurated an overall reduction […]

FHA in “Fix-It Mode,” Stresses Commitment to Reverse Mortgages

After substantial Home Equity Conversion Mortgage program changes implemented last year, the Federal Housing Administration (FHA) doing “triage” to assess, manage and improve the agency’s reverse mortgage loan portfolio. Having held roughly a month at the helm of the FHA, Commissioner Brian Montgomery says the agency is strongly focused on maintaining the health of the […]

Proprietary Reverse Mortgages Open Doors for New, Existing Borrowers

As the industry eagerly awaits the introduction of new proprietary reverse mortgages, jumbo loan originators credit these products with helping borrowers in a variety of situations—some more predictable than others. For a jumbo borrower, the needs are often very similar to those of a Home Equity Conversion Mortgage borrower, said Christina Harmes, a certified reverse […]

Ocwen, Live Well, RMF Lead Way as Secondary Market Strengthens

Prepayment speeds for Home Equity Conversion Mortgage-backed securities (HMBS) are slowing down in the first half of 2018, potentially signaling growing stability on the secondary market. The St. Johns, Fla.-based Baseline Reverse tracks the conditional prepayment rate (CPR) for each HMBS issued on the marketplace, with a slower speed indicating a more attractive product for […]

Why the Time is Right for New Private Reverse Mortgages

On the same day that multiple reverse mortgage lenders unveiled new proprietary products, a group of industry leaders came together to explain why this particular moment is right for private loans. “We believe there have been between $5 and $6 billion of proprietary non-agency reverse mortgages originated life-to-date,” roughly half of which are in securitizations, […]

FAR Rolls Out ‘Flex’ Option for HomeSafe Jumbo Reverse Mortgage

Finance of America Reverse on Tuesday formally introduced updated features for its proprietary HomeSafe reverse mortgage, joining the growing wave of new private product options hitting the marketplace this year. The HomeSafe Flex option will allow interested borrowers to draw 60% of the loan proceeds upfront, then receive the remaining 40% in the form of […]

Wave of New Private Reverse Mortgages to Hit This Summer

On the same day Reverse Mortgage Funding announced its new proprietary Equity Edge Reverse Mortgage, two more companies affirmed their commitment to building the private home equity conversion loan space. Longbridge Financial will introduce multiple private reverse mortgage products this year, CEO Chris Mayer announced Monday* at the National Reverse Mortgage Lenders Association’s eastern meeting […]

Three Years In, Underwriters Say LESA Has Improved Reverse Mortgages

It’s been nearly three years since the Department of Housing and Urban Development introduced Life Expectancy Set-Asides (LESAs), which require borrowers with less-than-stellar credit histories to set aside a portion of their reverse mortgage proceeds to pay taxes and insurance. It took time for underwriters to get a handle on LESA guidelines as they sought […]