Article 1: Reverse Mortgage Daily (Article Link) – Reverse mortgage lenders endorsed ??5,279 HECM units in October, down ?11.5% from September. According to Reverse Market Insight, the decline was widespread, with the Southwest and Great Plains seeing the only increases during the month.
Article 2: Reverse Mortgage Daily (Article Link) – Ginnie Mae announced it guaranteed more than $33.8 billion in mortgage-backed securities (MBS) in September.
Article 3: FOX 40 (WICZ.com) (Article Link) – As the economy continues to sputter people are looking for ways to make ends meet. In a segment of “Ask the Advisor,” Greg Lesko of Lesko Financial explains what a reverse mortgage is and why it might be right for certain homeowners. The video can be viewed here.
Today’s article link: Reverse Mortgage, JUMBO Reverse Mortgage, the New HECM Saver can help you in retirement
Reverse mortgage related articles for today.
If you would like information about reverse mortgages, JUMBO Reverse Mortgages or the New HECM Saver let me know. You can email me or go to my contact site to request information. Thanks and enjoy! Joe
Article 1: SmartMoney.com (Article) – The sputtering economy may have left millions of homeowners underwater on their house payments, but it has also boosted the popularity of reverse mortgages—loans that let cash-strapped, house-rich homeowners 62 and older convert decades of equity into dollars
Article 2: Akron.com (Article Link) – The U.S. Department of Housing and Urban Development (HUD) has announced a new reverse mortgage alternative aimed at cash-strapped seniors who are looking to reduce the up-front costs of tapping their home equity in exchange for lower loan proceeds.
While it’s too early to know how the market will react to the HECM Saver, it’s certainly good news for reverse mortgage borrowers.
In response to market demand, the Federal Housing Administration said it modified its reverse mortgage products to meet the needs of consumers. The new Saver and the HECM Standard provide consumers the needed flexibility and financially beneficial options for utilizing their home equity as part of their financial planning.
However, ?Jeff Lewis, Chairman of Generation Mortgage, told Mortgage Servicing News that the changes will create “a little bit of uncertainty in the short term in the marketplace.” While the Ginnie Mae HMBS market has already determined market clearing levels for the securities, the new products also require the market to find a level on each of them.
?Lewis does expect to see “a lot of borrower activity” right away, which is why he said the industry has to get “the capital markets side of it straight as fast as possible.”
?According to Lewis “there’s a couple of negatives to be aware of.” The ongoing mortgage insurance premium or MIT all borrowers pay each year to FHA will change from half a point to 1.25 points so the net effect is that what the borrowers will pay will be higher.
So far pricing for the HECM Saver is better than originally expected. Some companies have come out stronger than others, but it’s to soon to tell where pricing will end up.