Looking back at the stories that shaped our industry
2016 brought several changes to the reverse mortgage industry. Before launching head-first into the new year we should look back at the stories that shaped the Home Equity Conversion Mortgage to prepare for 2017.
February brought us…
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2 Comments
Although I respect Shannon’s view very much, what he said in this segment was more optimism than realism. The facts are the overall downward trend in endorsements is not getting better. The total for last fiscal year was the worst since fiscal 2005. Even worse the endorsement totals for the first two months of this fiscal year are the worst start to any fiscal year since November 2004.
The latest interpretation of the DOL Fiduciary Rule which is expected to go into effect in April 2017 is still over the top. There is no thought of HECMs anywhere in the new Rule. DOL does not have authority to rule on the use or recommended use of personal assets or their related debt in that rule.
Rather than focusing on how to reverse the current downward trend in endorsements and breakthrough current stagnation, we are distracted by what could be and what could have been: the Extreme Summit and the adopted but not implemented DOL Fiduciary Rule. Realism is out and even pragmatic optimism hanging on by a thread. What we are left with is pollyannaism.
The_Cynic,
While I generally agree with your positions in your comment, Shannon did not talk about endorsements or the Extreme Summit. How the Extreme Summit works into a conversation on endorsements for either fiscal or calendar year 2016 is unclear. On the other hand claims were made about how much better fiscal 2016 endorsements would be with it.
As you point out the “really big story” of the year is endorsements, endorsements and endorsements.