The new landscape of reverse lending - Skip to content

The new landscape of reverse lending


[ad#Independence Housing Group]
[vimeo id=”41949433″ width=”625″ height=”352″]

Reduction Of Reverse Mortgage Products After MetLife

Reverse Product Mix After MetLife

The Reduction Of Reverse Mortgage Products
Much like an earthquake can change the overall landscape creating new shorelines, ridges and hills the exit of Metlife will most certainly change the mix of reverse mortgage products. The products most likely to see a reduction are The HECM Saver and Purchase. Watch this week’s video for more.


Leave a Comment

1 Comment

  1. We are hearing that some companies are no longer offering fixed rate Savers due to pricing issues. If marginal rates go much higher, the adjustable rate Saver will lose some portion of its current base beyond the loss of production at MetLife Bank.

    For another segment of the market, the issue is not so much about interest rates as having a cash reserve when needed. With higher interest rates, the available line of credit should grow faster for those needing a cash reserve. As long as the financial planning community is pushing reverse mortgages as a replacement for a cash reserves, we should see continued sales of Savers and possibly some growth.

    One area of concern is the spread of state law which restricts the use of proceeds like California AB 793. Laws of this nature could turn the financial advisor community against the products.

    For now, it seems Saver and HECMs for Purchase endorsement volume will drop by as much as 20% of their current levels. While there is some hope for Saver endorsements to turn around in the near future, it is not clear how long it will take for endorsement volume on these products to turn around.

Add a Comment

Your email address will not be published. Required fields are marked *


Recent Stories


Subscribe to join our World

Get the latest reverse mortgage news delivered straight to your inbox.