Ocwen Explores New Product Alternatives As Reverse Business Shrinks

Ocwen Financial Corp. (NYSE:OCN), the parent company of Liberty Home Equity Solutions, reported a loss of $0.9 million in pre-tax reverse mortgage revenue during the third quarter of 2018, and executives are looking to new products to add to their offerings. Overall reporting a company-wide net loss of $41 million, executives blamed the reverse mortgage […]

HUD: Falling HECM Volume, Principal Limits Reflect Latest Program Changes

In an effort to illustrate the impacts of the latest reverse mortgage program changes, Federal Housing Administration officials presented supporting data at the the annual National Reverse Mortgage Lenders’ Association conference in San Diego last week. For the past 13 months, the reverse mortgage industry has been adjusting to lower principal limit factors and higher […]

HECM Endorsements See Uptick in October

Reverse mortgage endorsement volume grew in October, rising 7.3% above the previous month. The HECM Lenders report from Reverse Market Insight shows that FHA-approved lenders endorsed 3,091 loans last month with eight of the top 10 lenders experiencing growth. Endorsing 247 Home Equity Conversion Mortgages in October, One Reverse had the biggest gains of 24.7% […]

As Rates Rise, Reverse Mortgages Gain Appeal Among Forward Lenders

As rising interest rates make home purchases and refinances more cost-prohibitive for forward mortgage borrowers, reverse mortgages could be a worthwhile addition to forward lenders’ offerings, reverse professionals say. With traditional mortgage rates hovering around 5%, forward loan volume has dropped, taking jobs in its path. According to a recent article from the New York Post, Wells […]

More Proprietary Reverse Mortgages Expected to Enter Market

New proprietary reverse mortgage products are on the horizon as innovators look to fill remaining gaps left between the Home Equity Conversion Mortgage and other private products. At a panel discussion Monday at the National Reverse Mortgage Lenders Association annual conference in San Diego, Longbridge Financial CEO Chris Mayer, Reverse Mortgage Funding president David Peskin, […]

Early Data Shows 19% of HECMs Require 2nd Appraisal

The reverse mortgage appraisal rule change is less than a month old, and early numbers indicate that approximately 19% of Home Equity Conversion Mortgages are being flagged for a second appraisal, according to a panel discussion at the annual National Reverse Mortgage Lenders Association conference. HECM originators were unsure how many loan appraisals would be […]

LIBOR’s Exit Could Mean Gains for Reverse Mortgages

When the LIBOR index expires in three years, experts predict it will most likely be replaced by the Secured Overnight Financing Rate — and transitioning to this index could create billions in reverse mortgage gains and investor losses, a new article states. According to Urban Institute researchers, a Federal Reserve group convened and recommended the […]

AAG CEO Talks Challenges for HECM, Promise of New Approach

Reverse mortgage leader AAG has had an eventful year. In 2018 alone, the company has moved to a more product-agnostic model as a full retirement solutions provider, offering forward mortgage products and residential solutions. AAG has also expanded its reverse mortgage reach through proprietary offerings, largely through a partnership with Finance of America Reverse. Through […]

FAR Releases Jumbo HELOC Reverse Mortgage ‘HomeSafe Select’

Following the introduction of several new reverse mortgage products this year, there’s another proprietary loan on the market. Finance of America Reverse today announced the addition of a proprietary HELOC reverse mortgage to the company’s HomeSafe lineup — the ‘HomeSafe Select.’ Available for borrowers aged 62 and over, the non-recourse, non-FHA reverse mortgage features an […]

HECM Originators Feel Impact of Rising Rates

The reverse mortgage industry is beginning to feel the heat of rising interest rates, as originators and borrowers are seeing the impact to the bottom line. On the heels of historic low interest rates following the Great Recession, rates are beginning to rise for the first time in recent memory. “Rates have never been as […]