Moral hazard, adverse risk selection, and market share examined The World Bank Group examined the global reverse mortgage marketplace in it’s January research paper. While the loan remains characterized as a ‘last resort’ their critical analysis of supply-side challenges, adverse selection, and moral hazards are revealing. Despite these challenges the
Are repeated HECM changes and stricter guidelines preventing substantial growth in HECM endorsements? Despite increasing housing wealth, a growing senior population, and increasing financial need few older homeowners are taking a reverse mortgage. An examination of potential roadblocks and how to overcome them.
What’s a realistic outlook for 2020? The past may tell. If there’s one word that characterizes the HECM industry and its originators it would be resilient. Despite the housing crash of 2009, the massive overhaul with product cutbacks in 2013, and the momentous changes in October 2017, reverse mortgage originators
Lenders continue to expand their proprietary reverse mortgage offerings – a timely development FHA sees as encouraging. “We are considering some other changes [to the HECM program]”. Those are the words of FHA Commissioner Brian Montgomery during a media conference call for the release of FHA’s report to Congress last
Survey shows what HECM pros expect from HUD As the final days of summer pass the collective tension of reverse mortgage professionals increases in anticipation of what changes HUD will make to the federally-insured reverse mortgage program. As August or September bring us the changes for the following fiscal
Realistic Optimism? No matter how you slice it, HECM endorsement volumes are down- significantly. The first quarter of 2019 has 48% fewer endorsements than Q1 2018. Even when factoring in the lagging endorsements from the late 2018 rush to beat October 2, 2017, HECM changes– the trend is undeniable. HECM