The decline of consumer interest may signal the need for lenders to diversify their offerings…
Continue readingIs the HECM-Only Business Model Challenged?
A Catch-22
With reverse mortgage originators making less per funded loan some are curtailing their investment in marketing and lead purchases- both which contribute to fewer loans. The result is a self-fulfilling prophecy.
Continue readingAre we patronizing potential borrowers?
Are we unintentionally patronizing potential HECM borrowers?
Continue readingHECM % Deductions & New Tax Law
Reverse mortgage interest is deductible in many circumstances. However, there are some cases when it is not.
Continue readingVirtual HECMs, Taxes & Goodbye to a Friend
Weekly news roundup: January 15th, 2018
Half of US households are lacking the funds to retire comfortably- The National Retirement Risk Index dropped from 52 to 50% between 2013 and 16. The index-as calculated by the Center for Retirement Research at Boston College- measures the percentage of American households that are unprepared for retirement. The bottom line is nearly half are underprepared to retire, even if they liquidate their assets over time and work until age 65. The most salient fact for our viewers is despite numerous cutbacks to the HECM, the program remains a valuable and viable option for today’s older homeowner.
The Republican tax law has received reviews- raves from those seeing larger paychecks or receiving bonuses from employers who saw their corporate tax rates slashed – and criticism- much centered on the inequitable impact on taxpayers who may no longer be able to deduct all their state and local taxes…
The Year in Review
A look back at the stories of 2017 that shaped the reverse mortgage industry
Continue readingAs GDP Rises, Interest Rates Will Follow
As the nation’s GDP increases interest rates are sure to follow. How can the HECM industry respond?
Continue readingA Sneak Peek of 2018?
What should we be watching for in the new year? From the GOP tax bill to the accounting of the HECM
Continue readingGAO Outlines Reasons Not to Move the HECM from the MMI Fund
Government Accountability Office outlines reasons to keep the HECM in FHA MMI Fund
On its face, the calls the separate the highly-volatile Home Equity Conversion (HECM) from the FHA’s MMI (Mutual Mortgage Insurance Fund) appear fair-minded and pragmatic, but a recent report from the Government Accountability Office cited several reasons why the HECM should stay put. In it’s role as a government watchdog, the GAO is to provide nonpartisan analysis and accountability on how the federal government spends taxpayer dollars.
The GAO’s report entitled “Capital Requirements and Stress Testing Practices Need Strengthening” presents arguments for both moving the HECM to the Special Risk Insurance Fund and to keep it within the MMI fund where it has resided since 2009. In recent months pressure has mounted to move the HECM program from lawmakers and trade groups alike…
More Questions Than Answers
Before any further changes or cutbacks are enacted, the source of ongoing HECM losses must be identified.
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