The DOGE Effect & Federal Housing Agencies Shockwaves continue to rattle our nation’s capitol as the Trump 2.0 administration and DOGE bring the proverbial wrecking ball. Now there are rumors of massive layoffs at HUD and FHA. Here’s what the experts anticipate…
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.
2 Comments
While the industry still gets automated total HECM endorsement data by lender (not by originating entity), that data is not broken down by category of HECM (Traditional, Refi, and H4P). The question is when will HUD once again begin to provide the industry with this data?
So is HMBS 2.0 lost in all of this commotion? Those HECM lenders who were teetering due to the problems inherent in financing the assignment process are now caught in the whirlpool of DOGE disruption. If one major player falls and GNMA is not fortified with increased and competent staff as a result of that fall, the RM industry could be in for very difficult days ahead.
It appears that DOGE is freewheeling without any clear bright light lines as to the limits it can disrupt. What some see as great hope, others see as excesses bordering on a milder form of anarchy full of unintended consequences. Some believe that Trump will not harm senior programs such as the HECM program but whose administration instituted the 10/2/2017 changes and never corrected the mess it created in the following three plus years? Rather than having a mature industry today, the HECM industry is more dependent on the downturns in the expected rate index than at any time since 9/30/2003 and most likely even earlier.
This comment is not a declaration or prophecy of doom but rather another look at the crippling nature of Trump 2.0 and its impact on the HECM program. Then one must ask when is the “planned” new norm supposed to begin as to governing? To date that seems farther away than the day following the Presidential election. Even Congressional Republicans are less hopeful of quickly seeing the good that will come from the Musk/Trump approach to cleaning up the swamp. Good governing is far more difficult than mere disruption. So when is the good from this disruption supposed to appear?
There is so much that could be said but can any team pull off such disruption in a way that the American people are better off? Or is this a bridge too far? Based on four years of Trump 1.0, the HECM program has never experienced such barriers to growth since 9/30/2001. Yet Biden 1.0 never stepped in to help the HECM portion of the industry recover. As the old saying goes: “a pox on both…” when it comes to concern for the cash flow needs of home owning seniors. Modifying what an exasperated Trump once declared, where is the Roy Cohn for seniors?