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The State Of The Reverse Mortage Industry
Insecurity & opportunity linger after MetLife’s departure yet the Survivors Club remains. What is the secret to staying focused and being positioned to thrive in an uncertain market?
3 Comments
I see the industry shrinking. I see due to depreciation the government putting more controls on reverses, I see not only qualifying guidelines but changes on who is liable if property is underwater, and I see the future of this program bleack
Jan. I think we are definitely in a turbulent market but do not see the HECM changing it’s core non-recourse policy for those who owe more than their homes are worth. The MMI fund was hit hard by home values but is on the road to recovery. I too hope for better days.
Jan,
Like you I see a shrinking market for at least another (if not up to three) full fiscal year(s).
What I do not see is a dramatic change in the program. As volume drops so does the potential risk to HUD. If Savers take off to any degree at all in the next few years or home appreciation turns around and begins to substantially improve, HUD may be able to even lower ongoing MIP.
The ones who should consider leaving the industry are those who are marginally productive and have substantially better immediate opportunities elsewhere. Things will not get better for awhile so taking a breather from the industry for some may be a healthy idea.
For those who may not be doing as well as they did in the past but are surviving OK, it would be a real shame to see them leave. While continuing hard work in prospecting may seem futile at times, continuing to do so means they are building the framework for a strong future when things finally do turn around.
Even The_Cynic believes the future for reverse mortgages is very bright, just not right now. This is not a housing recession but the Great Depression as to housing. Recovery for our industry will be much, much slower than 100,000 endorsements next calendar year. I am no Pollyanna and my dreams about the industry are in shades of black and white for now.
I have had a number of friends leave the industry for better opportunities. Some have also left for marginally better ones. Some of the latter have returned realizing that the difference was only marginal and the opportunities in our industry made the investment in waiting for the turn a reasonable investment in time.
Jan, here is wishing the best of success to you.