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Interview With NRMLA President Peter Bell
Reverse Mortgage Industry Outlook
What is going on behind the scenes and what can we expect this year in the reverse mortgage industry? See our interview with NRMLA President Peter Bell to learn more about regulation, lawmaking effecting reverse mortgages and more.
2 Comments
As strong as NMRLA appears to be, when are we going to have the SAFE act divided for those of us who are Reverse only folks and do not venture into the forward arena at all. It seems as though we could have our own liscening tests and not have to trouble with the forwardd sections which comprise 99% of the questiions. I fully understand that we all need to know the State laws where we originate. Be interesting in hearing what Peter has to say re this, as well as you, Shannon.
While secondary market investors are important, it seems Peter is saying there is little which can be done to increase industry production. A lot of the current problem he places on the election cycle. Yet the political situation in 2004 and 2008 were not that much different. 2008 was a terrible year as to the economic future of the country. We were hearing about TARP and many leaders seemed to be trying to hide their personal panic. Has the approval rating for Congress changed that much in the last eight years?
Yet in 2004 and 2008 we saw ever increasing endorsement volumes. While the political and economic environment may have some influence on the decisions of seniors to move forward on HECMs, that seems to account for only a small amount of the downturn. It seems far deeper than such superficial rationals.
We have never had such a positive press environment. Even our detractors seem quiet these days. Everyone is talking about the positive reception of Realtors and financial advisors. Many professionals are even openly in the media recommending HECMs for the more affluent. Never in the history of our country have we seen so many seniors with no foreseeable decline now or in the future. With losses in asset values and lower values in home equity, it would seem seniors would be waiting on every corner to get our products. Never in the history of TV or the Internet has anyone seen so much advertising for reverse mortgages and as to the Internet many so called experts cry out there is room for far more.
Most surviving lenders are happy with current endorsement and case number assignment levels. They are seeing their share growing. After all this is the year of the lender.
Yet this fiscal year MetLife ran away and FNB has announced it will go. While surviving lenders will once again have the chance to grow, it seems originators will see their opportunities dwindle still further.
So why are endorsements and case number assignments going down? Even though Peter answered, his response seemed rather shallow and inadequate. As to originator concerns, the immediate horizon is not as promising as it needs to be. Perhaps next year…?