2 Comments

1. 

   James E. Veale, CPA (Inactive), MBT

   July 3, 2024 at 7:55 pm

   There is little doubt that fiscal year 2024 will be the worst fiscal year for HECM endorsements in 21 years. It will be significantly worse than even fiscal year 2019. As one industry leader declared yesterday: “When we cannot reach 20,000 HECM endorsements in nine months of a fiscal year….”

   Then there was some euphemistic language about interest being so high. Well, the expected rate index NEVER reached 5% in this fiscal year. It is the margins lenders allow to be charged that raise expected rates substantially above 5%.? So if there is a problem with interest rates, perhaps the problem is with us. Yet HECM endorsements would be substantially higher if HECM PLFs (Principal Limit Factors) were at the same level as they were on 9/29/2017.

   In about 90 days, fiscal year 2025 will start. Will HECM endorsement volume increase? If so what will ensure that?

   • Reply
   • Link
2. 

   James E. Veale, CPA (Inactive), MBT

   July 3, 2024 at 8:01 pm

   There is little doubt that fiscal year 2024 will be the worst fiscal year for HECM endorsements in 21 years. It will be significantly worse than even fiscal year 2019. As one industry expert declared yesterday: “When we cannot reach 20,000 HECM endorsements in nine months of a fiscal year….”

   Then there was some euphemistic language about interest being so high. Well, the expected rate index NEVER reached 5% in this fiscal year. It is the margins that lenders allow to be charged that raise expected rates substantially above 5%. So if there is a problem with interest rates, perhaps the problem is with us. Yet HECM endorsements would be substantially higher if HECM PLFs (Principal Limit Factors) were at the same level as they were on 9/29/2017.

   In about 90 days, fiscal year 2025 will start. Will HECM endorsement volume increase? If so what will ensure that? If you say Jerome Powell, that has been the false hope of the industry for some time now.

   • Reply
   • Link