Exclusive Interview with John Lunde, founder of Reverse Market Insight
John Lunde is the president and founder of Reverse Market Insight (RMI). They closely track the reverse mortgage (HECM) industry data points and trends.
John discusses the following
- Impacts of the reduced Principal Limit Floor
- How this recent announcement compares to previous HECM changes
- Lender profitability and consumer pricing
- Key industry metrics we should be watching closely
- What opportunities does this change present?
HUD is soliciting feedback from interested parties until September 29, 2017. Feeback can be submitted to: answers@hud.gov
Official Mortgagee Letter 2017-12 “Home Equity Conversion Mortgage (HECM) Program: Mortgage Insurance Premium Rates and Principal Limit Factors”
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1 Comment
This interview was a good one Shannon. I hope many took advantage of it and listened as I did.
I am looking forward to next week and the continuation of your dialog.
I agree with what both you and John Lund said, in reference to the challenges but most interesting was the comparison of the HECM to the forward mortgage.
I came from the forward world as most of you know, 30 years worth, I have been in the reverse mortgage space now over 20 years, a lot of changes in both worlds!
We are now seeing many similarities between the reverse and the forward mortgage, however, there is still many differences. Never the less, we must realize we are in a different environment, we are credit driven now and definitely more price/rate driven from a competitive standpoint!
This brings us back to what I have been saying, we now have to look at the markets we go after completely different than we have in the past.
We are NOT just a need based product anymore. Since April of 2015 and the changes in between including the latest, we ware a different face!
Yes, our market still consists of the senior sector! Yes, we still MUST have the passion for our seniors to be successful in this industry and yes, we still want to help all those we can in any way we can!
The difference is the market we must go after, we need to look toward the professional sector, fiduciaries who represent those seniors who are more affluent and those with low loan to ratio loans on there properties or none at all!
We need to look at the senior wanting a reverse mortgage differently. We now have more of a retirement planning tool to offer those with equity, we can offer the fiduciary a hedging tool for other investments they may manage for their senior clients!
In short, this is not the end of the HECM, it is just the start of new and great opportunities for those who will adapt, understand the changes and capitalize on them all the way!
Just maybe we will see the world of the reverse mortgage be more successful than ever down the road and take on a completely different image!
John A. Smaldone
http://www.hanover-financial.com