A bullish outlook for 2011…
We have just finished perhaps two of the most challenging years the reverse mortgage industry has ever faced. The 2009 PLF (Principal Limit Factor) cuts, plunging home values and economic uncertainty have resulted in a 31% reduction in reverse mortgages for the fiscal year 2010. The saying “when you’ve hit the bottom there’s nowhere to go but up” comes to mind. Perhaps.
According to a recent report issued by Reverse Market Insight, there is reason for some optimism in fiscal year 2011 (begins October 2010). Why? Home depreciation has slowed indicating we may be closer to the bottom, the new PLF floor (4.99%) giving some borrower higher proceeds and the emergence of the HECM Saver. In a recent podcast interview with HUD’s Deputy Assistant Secretary Vicki Bott, I learned that the HECM Saver is more than just a new product, but has helped the Traditional HECM reducing the need for substantial subsidy requests. The projections are a marked increase for 2011. (Read the full RM Insight report here).
So now the questions:
1- Do you believe we will see an increase volume this year?
2- What are your plans to market the HECM Saver?
Please leave your comments in the comment section below…