Often out of sight and mind after a reverse mortgage closes, servicing is the backbone of the ongoing relationship with the borrower. From monthly draws, tenure payments and loan questions reverse mortgage servicers are on the front lines of long-term customer support and care. The average loan officer is with the borrower for 3-9 months while the servicer….
Continue readingAre we already ‘assessing’ borrowers?
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Are we already assessing borrowers? Many have mixed emotions about the soon to be released financial assessment from HUD even though we know it is necessary to help reduce defaults due to taxes and insurance. The question is have lenders quietly begun their own financial assessment, albeit informal with tightening underwriting standards?
The “Exit Effect”
The exits of large banks and lenders such as MetLife, Bank of America and Wells Fargo have done more than consolidate the market or create opportunities for remaining mid-size lenders. These ripples in our industry have gone largely unnoticed. It boils down to liquidity. That is the supply of approved Ginnie Mae issuers of HECM Mortgage Backed Securities or HMBSs. Today we are only supported by …
Continue readingSeptember 2012 Top 100 HECM Retail Lenders
Download your September Top 100 Retail HECM Lenders Report Here.
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Genworth made the jump from third to first while AAG & Security One Lending remain strong in the top 10 moving one notch. RMS made a huge jump from 40 in August to break the top 25 at 23rd position. Overall endorsement volume remains down year over year but lenders are growing rapidly due to consolidation and we should see further increased endorsements as former MetLife loan officers pipelines move through to endorsements in the coming months.
Walking away? Loan Fall Out
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Are potential reverse mortgage borrowers and applicants walking away from the loan or is it that they just don’t qualify? The question stems from a recent report from IBIS software which is tracking the number of HECM borrowers who receive counseling that actually end up with a closed loan. A first HECM counseling protocols were suspected by some as to why so many never closed a loan. But is that really what is happening? Other factors must be examined such as appraisal values, property conditions or just cold feet. Our video segment examines the numbers and possible causes and also reason to be optimistic in the future.
Turning the ship around
Certainly the reverse mortgage industry has garnered more legitimacy as a financial planning tool amongst financial professionals but we still have a long way to go. But what about those who don’t see the legitimacy or value? How do we turn the proverbial ship around? As our sales force becomes more educated…
Continue readingNot Confused But Informed
Would a senior make perhaps the biggest financial decision of their life, with their largest asset in the midst of confusion and uncertainty and choose to take a reverse mortgage? Most likely not. But that was the impression the Consumer Financial Protection Bureau included in their required report to…
Continue readingConsumers Union to CFPB: Only as a “Last Resort”
Two consumer groups are urging the CFPB to make drastic changes to the revere mortgage program. Chief among them is a suitability standard and fiduciary duty. In the words of the Consumers Union they recommend that a reverse mortgage be a loan of last resort when there is no other viable option and…
Continue readingAugust 2012 Top 100 HECM Retail Lenders
August reveals some big movers in HECM lending. AAG (American Advisor’s Group) moved from #5 to the top spot and Security One Lending shot up from #7 to #4 ranking this month. MetLife went from #6 in August with 250 loans down to #42 this month as their pipeline of loans has mostly cleared….
Continue readingRequired Pre-Education?
Require Pre-Education Before Counseling? One groups suggested to the CFPB that a ‘third party’ provide upfront education about the reverse mortgage BEFORE the borrower get’s HUD counseling or meets with a lender. Who would these ‘third parties’ be and who would supervise them?
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