Suspension of Standard Fixed & Impact on Marketing Dollars
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That’s a questions many lenders, brokers and independent loan officers are left asking. With the Standard Fixed Rate HECMs no longer available for case numbers issued on or after April 1st…yes April Fool’s day… a prime source of marketing dollars will go away. The Standard Fixed Rate reverse mortgage was not only popular amongst lenders and borrowers but with investors as well.
With the standard adjustable paying less than the fixed it follows that premiums paid for these loans will be less. It is a double-edged sword of marketing dollars and industry volume. With fewer dollars to market with we may see fewer loans this year. Who stands to be impacted the most?