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Reverse Mortgage Daily

HECM Financial Assessment Streamlined With FHA Policy Shift
The Federal Housing Administration (FHA) has issued a new mortgagee letter offering policy guidance on practices concerning the use of Third Party Verification (TPV) services as an alternative for authenticating employment, income or assets of potential borrowers. In Mortgagee Letter 19-01, released by the agency on Friday, FHA revises documentation requirements for the financial assessment […]
Confronting Four Reverse Mortgage Misconceptions
An opponent of reverse mortgage products recently wrote two columns at Forbes discussing reasons that the business should be avoided, and that potential borrowers searching for ways to fund their retirements would be better served by exploring other financial options. RMD reached out to Professor Teresa Ghilarducci from The New School’s department of economics to […]
Harvard Business Review: How Retirement Can Change Your Identity
Studies show that people who are able to afford a full retirement – and who will also be healthy enough to enjoy it – are generally much happier in retirement since their working life is behind them, and they can instead spend their time doing the things they enjoy doing. However, when a critical component […]
Programming Note: RMD Presidents’ Day Weekend Schedule
Thank you once more to Reverse Mortgage Daily’s dedicated base of readers for a great start to 2019’s coverage over the past couple of months! As a reminder, RMD’s Chicago headquarters will be closed on Monday, February 18 in observance of Presidents’ Day. Our normal posting schedule and daily email will resume on the morning […]
Forbes: Tax Issues Surrounding Reverse Mortgage Repayment
Once a Home Equity Conversion Mortgage (HECM) comes due, there are certain options that are available to the relevant borrowing parties when repaying the loan’s balance, but they also come with their own tax implications. This is according to Dr. Wade Pfau, professor of retirement income at the American College of Financial Services and a […]
Abandoning the ‘Wild West:’ How Financial Advisors are Evolving on Reverse Mortgages
Evidence continues to mount concerning an evolving relationship between the reverse mortgage industry and fiduciarily responsible financial advisors. While there is still a stigma surrounding reverse mortgage products for a lot of those offering financial advice to their clients, RMD has seen evidence of forward momentum on the part of some organizations becoming increasingly willing […]
Lenders Aim to Make Private Reverse Mortgages Available in More States
Private alternatives to the government-insured Home Equity Conversion Mortgage (HECM) are becoming more popular — particularly for people with high-value properties — and have been seen by some in the reverse mortgage industry as a possible factor that could save the business from generally reduced volume, and the still-felt impact of October 2017’s changes to […]
The Causes and Effects of an Early Retirement
Over a third of all American workers retire earlier than planned, and do so for various reasons that can relate to health, employment, family and finances, but these kinds of shocks still only comprise only a quarter of recorded early retirements. This indicates that other factors are at play, according to a new research brief […]
Forbes Offers Reasons to Avoid Reverse Mortgages
There are at least four major reasons that potential borrowers should avoid taking a reverse mortgage, according to economics professor Teresa Ghilarducci of The New School based in New York, N.Y. in a new column at Forbes. While admitting that reverse mortgages may work for some, she says that is not true of everyone. However, […]
RMS Updates Reverse Mortgage Borrowers As Parent Company Restructures
Ditech Holding Corporation (NYSE: DHCP), parent company of Reverse Mortgage Solutions (RMS), announced today that it has filed filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. As a result of the process, some borrower payments may have been temporarily impacted, the company said in a notice to customers. Certain subsidiaries including […]

Reverse Market Insight

HECM Lenders – January 2019
HECM endorsements dropped -5.8% to 1,649 loans, but it’s hard to honestly know what to make of that given the noise introduced by the government shutdown. HECM loans were not endorsed during the shutdown, so from December 22-January 27 we have a big gap in activity. The January total surely represents more loans that we’d… […]
HECM Lenders – December 2018
HECM endorsements dropped -31.4% to 1,751 loans in December, establishing a second consecutive low point after the FHA product changes took effect in October 2017. Last month we wondered if November’s decline was just some volume shifting from HECMs to proprietary, calling that the best case scenario This month’s drop looks a lot more like… […]
HECM Originators – October 2018
HECM endorsements increased 7.4% to 3,087 loans in October, recovering most of the loss in the prior month. Retail led the way, gaining 7.9% to 1,829 loans Wholesale posted a smaller 6.7% rise to 1,258 loans Eight of the top ten lenders saw increased volume on the month: One Reverse paced the field, jumping 24.7%… […]
HECM Lenders – November 2018
New lows, here we are. HECM endorsements dropped -17.4% to 2,553 loans in November, setting a new low after the October 2017 product changes. Just one region out of the ten tracked rose and that was the smallest, Great Plains, up 3.2% to 65 loans A good example of how far the industry has fallen… […]
HECM Originators – September 2018
HECM endorsements dropped -9.9% to 2,874 loans in September, narrowly missing out on a new monthly low from the product changes one year earlier. The decline was broad based, with very little difference between Retail (-9.8%) and Wholesale (-10.1%) That said, Retail did set a new low at 1,695 loans which might suggest less of an… […]
HECM Lenders – October 2018
HECM endorsement volume crept back above 3,000 loans in October, rising 7.3% to 3,091. 8 of 10 regions were up, with New England leading the way – growing 34% to 126 loans (and a World Series title for extra umph) Southwest also fared well, increasing 29% to 360 loans in its highest month since May… […]
HECM Originators – August 2018
HECM endorsements rose 9.8% in August overall to end at 3,191 loans. The pickup was balanced across Retail and Wholesale, up 8.2% and 12.1%, respectively We have to look back to January for the last time both channels were up, which is also the peak of loans endorsed under the pre-Oct 2017 rules The top… […]
HECM Lenders – September 2018
HECM endorsement volume fell -9.9% to 2,880 loans in September, re-visiting the lows from June but not making new ones (yet?). 9 of 10 regions were down, with the lone exception in New York/New Jersey which managed to grow 6.6% to 94 loans Southeast/Caribbean was the best of the rest, dropping -2.5% to 585 loans… […]
HECM Originators – July 2018
HECM endorsements rose 2.6% in July overall to end at 2,907 loans. The pickup was entirely in broker/wholesale business, which rose 12.2% after 5 consecutive monthly declines Last time broker/wholesale volumes were up was January – volumes in July are down -62.5% from that point Retail dropped -3% to 1,737 loans, down -45.5% from January… […]
HECM Lenders – August 2018
HECM endorsement volume grew 9.9% to 3,197 loans in August. That’s the third lowest total in the past 12 months but importantly, it’s also the second month of growth since the June total of 2,838. All 10 regions were up on the month, with Mid Atlantic leading at 28.2% Southeast/Caribbean and Pacific/Hawaii are the two… […]