HECM Changes & the Ensuing Crash in Volume
While the mortgagee letter was rather pithy, the potential impacts are considerable. Here are some impacts to anticipate and plan for in the wake of the most recent overhaul of the federally-insured reverse mortgage.
Fewer qualified borrowers with high mortgage balances. Just as rising interest rates squeeze out homebuyers requiring higher down payments and monthly installments, HUD’s lending ratio and floor reductions will preclude a significant percentage of those seeking to eliminate their monthly mortgage burden.
Opportunities for smaller lenders and brokers. The resulting push to compete on loan margins will reduce the money available for marketing… Download the video transcript here.