HECM Changes: 5 Things to Expect

Shannon Hicks October 6, 2017 4

ePath 100K RM leads

HECM Changes & the Ensuing Crash in Volume

reverse mortgage newsToday marks one week after HUD enacted yet another reform of the Home Equity Conversion Mortgage. While it’s still too early to tell, what lasting impacts can we expect as a results of these changes?

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.

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  1. Larry Brooks October 10, 2017 at 5:20 am - Reply

    Is any organization working to try to get these changes reversed?

    • The_Cynic October 13, 2017 at 11:36 am - Reply


      Why? What do you believe should replace them?

  2. robin October 10, 2017 at 5:30 pm - Reply

    Too late for that. We had our say after 8/14.
    The secondary market might try to do something. I see a non-fha reverse mortgage. Just getting rid of HUD and FHA might help.

    • The_Cynic October 13, 2017 at 11:38 am - Reply


      Your suggestions are ridiculous.

      As to non-FHA reverse mortgages, I cannot tell you how many seniors I had to call to tell them that their application was being denied due to the proprietary product lender stopping their reverse mortgage lending.

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