NextAvenue: Reverse Mortgages May ‘Backfire’ for Retirees, Though New Protections are Welcome

A lack of borrower awareness around continuing obligations, small debts and ongoing issues related to the COVID-19 pandemic could cause borrowers taking out a reverse mortgage to “backfire” for some retirees. This is according to an article published by retirement website NextAvenue, and republished by MarketWatch. Being aware of continuing obligations the borrower has after […]

RMF Revives ‘MAX5’ Adjustable Rate Reverse Mortgage for CMT Transition

Reverse Mortgage Funding announced on Monday the launch of a new Home Equity Conversion Mortgage (HECM) product to protect against future interest rate increases, while also preparing for the industry’s imminent switch from the London interbank Offered Rate (LIBOR) index to the Constant Maturity Treasury (CMT) index. The new product, the HECM “MAX5,” is described […]

Why a Senior May Opt for Alternative Equity Over a Reverse Mortgage

Alternative equity tapping options – including products like sale leaseback or shared equity investments – do not typically have an age restriction similar to the ones which are active for reverse mortgage products. Nevertheless, for a senior who is looking to tap into the equity they’ve built up in their home, it is possible that […]

How to Expand the Realtor Audience for Reverse Mortgage Purchases

Home Equity Conversion Mortgage (HECM) for Purchase (H4P), a transaction in which a reverse mortgage can be used to fund the purchase of a new home, represents only a small share of the full activity of the larger reverse mortgage business, a figure pegged at 6.7% according to 2019 HMDA data. However, two lenders who […]

Business Insider: What to Keep in Mind About Reverse Mortgages

A reverse mortgage is a complex financial product that comes with a lot of necessary considerations for anyone who is contemplating getting such a loan, and these include potential benefits as well as risks that a prospective borrower should keep in mind. This is according to a new reverse mortgage overview column by mortgage reporter […]

CNBC: Things to Know About Reverse Mortgages

Reverse mortgages can present a good opportunity for someone at or near retirement, but the product category comes with some pitfalls that potential borrowers should keep in mind before they think of engaging in a reverse mortgage transaction. This is according to financial columnist Liz Weston in a new article at CNBC. “If you’re thinking […]

How Alternative Equity Products Interact with the Reverse Mortgage Industry

In terms of the available options that consumers have to tap into their home equity, so far the paths toward that goal are relatively isolated to something like a Home Equity Line of Credit (HELOC) or a reverse mortgage, either proprietary or a Federal Housing Administration (FHA)-backed Home Equity Conversion Mortgage (HECM). While that is […]

Forbes: Home Equity Tapping Options After Home Value Rises

For many people who have seen their home values rise during this low rate environment and additional activity in some regional real estate markets, some may be asking questions about what they can do to take advantage of these changes if they own a home. Taking equity out of the home is one such option, […]

Industry Leaders: HECMs to Drive Reverse Mortgage Industry in Near-Term

The reverse mortgage industry is likely to be led by Home Equity Conversion Mortgage (HECM) business as opposed to proprietary products in the near future, owing to the value proposition and rate environment according to industry leaders at two different top ten lenders. This is according to the leaders themselves during panels at RMD’s HEQ […]