More Private Reverse Mortgage Products on Deck, Just in Case

If the government makes any sudden moves in the reverse mortgage market, lenders have private products in development that could fill some of the void. People familiar with their development say there are at least a few products that could come off the shelf within several months should the government decide to lower HECM loan […]

Moody’s Downgrades $808 Million of Private Label Reverse Mortgage Bonds

Driven by continued weakness in the housing market, among other factors, Moody’s Investors Service downgraded the ratings of several bonds backed by private reverse mortgages. The downgrade actions came from three mortgage deals and were driven primarily based on the loans concentrated in California, where house prices have declined more than 40% since 2006, Moody’s noted. […]

Private Products: Return Inevitable, Impact Unknown

Once an industry that thrived on the development of private products to meet the needs of senior homeowners, the reverse mortgage industry of today is almost entirely comprised of a single government product. Prior to the financial crisis, there were several lenders offering a variety of proprietary products and no one would’ve argued about the […]

The Role of Jumbo Reverse Mortgages in the Market

What role will the jumbo reverse mortgage play in the marketplace today? Jeff Lewis, chairman of Generation Mortgage, told the Boston Globe it not only meets the needs of borrowers with higher home values, but will also serve aging boomers who are still raising children and helping to support their own parents.  Describing an experience […]

S&P Downgrades Seven Classes from Two Jumbo Reverse Mortgage Transactions

Standard and Poor’s lowered ratings on seven classes from two U.S. residential mortgage-backed securities (RMBS) transactions backed by nonconforming reverse mortgage loan collateral to “BBB” ratings. According to S&P, the seven downgraded classes from series Securities Corp.’s (SASCO’s) series 2006-RM1 and Structured Asset Securities Corporation Reverse Mortgage Loan Trust 2007-RM1 reflect that the amount of credit enhancement […]

US Regulator Issues Guidance for Private Reverse Mortgage Products

New guidance from the Federal Financial Institutions Examination Council (FFIEC) says that institutions are encouraged to follow or adopt relevant HECM requirements for mandatory counseling, disclosures, restrictions on cross-selling of ancillary products, and reliable appraisals for proprietary or jumbo reverse mortgage products. While private reverse mortgages have been non-existent until recently, the agency emphasizes the importance of financial […]

After Long Dry Spell, Jumbo Reverse Mortgage Closings Begin

After rolling out the first new jumbo reverse mortgage product in two years, Generation Mortgage announced it closed the first Plus product on Wednesday. “The Generation Plus loan caters to an underserved segment of senior homeowners living in higher-valued homes,” said Scott Peters, President and CEO, Generation Mortgage Company. “We’re very pleased with the quick […]

The Return of Jumbo Reverse Mortgages: A Closer Look

Generation Mortgage’s decision to release the first jumbo reverse mortgage product in years is a big step for the industry and a closer look at the product guidelines provides some insight into where proprietary products are heading. Signaling the future of reverse mortgages will include some sort of a credit underwrite, the Plus products requires […]

With High FHA Loan Limits, Hard for Private Reverse Mortgages to Compete

During the Mortgage Bankers Association Secondary Marketing conference in New York last week, David Stevens, Federal Housing Administration (FHA) commissioner stressed to attendees the need to bring private markets back into the mortgage business.  “This is a market purely on life support, sustained by the federal government,” he said. “Having FHA do this much volume is […]

Proprietary Reverse Mortgage Product Returns

Generation Mortgage announced the release of the Generation Plus on Tuesday, a new fixed rate jumbo reverse mortgage program for homes valued up to $6 million. The product is tailored specifically for seniors whose homes appraise higher than than $1,000,000 said the company. “Many owners of higher-valued homes find themselves in the position of being house rich […]