EPISODE #857
FHA HECM case number assignments.
[FHA]
The latest case number assignments for HECM loans was released. Here’s what October’s application data reveals…
[Listen for Details]
Other Stories:
-
-
[24/7 WallStreet] Ramsey Solutions is still spreading falsehoods about reverse mortgages.
[Read the article] [Contact the Editorial Team] -
[Housing Wire] Gabe Bodner takes the reigns of One Trust Home Loan’s 55+ lending division.
-
Shannon Hicks
Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.
1 Comment
As to Dave’s dribble, California with its relatively low percentage of seniors to general population, has the largest share of reverse mortgages of any state. Even if reverse mortgages were recourse, the American Bar Association categorizes California a nonrecourse state due to its foreclosure law structure. Trying to obtain a deficiency judgment in this state is so horrific that lenders forego that right and instead use the trustee’s right of sale in trust deeds. By this tactic, lenders mandatorily forego the right to obtain a deficiency judgment.
The other side of this coin means that in California, the reverse mortgage nonrecourse feature has little value in the scope of things. I have been a California real estate broker for over three decades and a reverse mortgage originator for almost two-thirds of that time and have yet to hear of a single lender using the courts in California to obtain a deficiency judgment against a residential mortgage borrower (or that borrower’s heirs) on a recourse mortgage (which most mortgages are in California).
I guess despite Dave’s claims about his skills in real estate, he does not know much about mortgages in the country’s most populous state. Worse, he knows nothing about the nonrecourse feature found in ALL reverse mortgages since 15USC1602(cc) first became law, decades ago.
As to October 2024 HECM CNAs (case number assignments), the most likely month they will have their greatest impact on HECM endorsements is February 2025 in the second quarter of fiscal year 2025. The October 2024 CNA total was the highest total seen in the last 25 months. With just nine full months remaining in this fiscal year and a likely lag time of four months for the average HECM to go from CNA to endorsement, unless something monumentally astounding occurs in the next five plus months in the way of higher PLFs or much lower interest rates, this fiscal year could end up being yet another wretched year for HECM endorsements.
As most of us are aware of, four out of the five worst fiscal years for HECM endorsements since 9/30/2003 began occurring in fiscal year 2019. Those fiscal years are from worst to least worst: 2024. 2019, 2023, and 2020. The fifth year was fiscal year 2004 and stands as the fourth worst fiscal year for HECM endorsments since 9/30/2003.
Despite endorsing less than 27,000 HECMs last fiscal year, for the third time in the last few weeks, I have heard very experienced HECM originators confidently say that FHA endorsed 50,000 HECMs in fiscal year 2024. You gotta wonder….