Fees, lending ratios (PLFs), and market growth
The following commentary does not represent the official position of Reverse Focus, Inc.
You don’t have to the read industry blogs to know that reverse mortgage volumes are in retreat, not only from the historic levels, but even from the previous year. Recent data shows current 2018 HECM endorsements are down 13% from the previous year. As reported here, last month Reverse Market Insight saw signs of a potential leveling off of market volume with May HECM endorsements nearly identical to April. However many originators in the field remain challenged in the post-October 2nd world of originating HECMs. HECM professionals are finding that many interested homeowners no longer qualify due to the last round of lending ratio or principal limit factor reductions enacted last Fall.
However, some HECM lenders and originators have bucked the attrition in loan volume posting gains in 2018. They key? Specialization