Unpredictable HECM changes lead many to diversify
If there’s one lesson investors have repeatedly learned it is the need to diversify, or suffer the consequences. Diversification is key for both small and large businesses and today several reverse mortgage lenders are making the shift to offer both traditional and HECM loans.
Any industry that is consistently focused on reacting to regulatory changes cannot grow. Such was the sentiment expressed by AAG’s CEO Reza Jahangiri during a panel at NRMLA’s annual meeting in San Francisco this month. “It puts us in a short-term, reactive response mode, and it’s really hard to invest in those longer-term initiatives and strategies”, said Jahangiri.
Hard to invest indeed. It could be easily argued that the Home Equity Conversion Mortgage has undergone more cutbacks, changes, and reforms than any other financial product in the marketplace today. As a result, HECM-only lenders are especially vulnerable unable to find the new norm of doing business. The HECM’s dependency…