How’s The Reverse Mortgage Market?

by Peter G. Miller
September 3rd, 2007
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With the mortgage meltdown growing, how has the market for reverse mortgages been impacted — if at all?

The answer seems to be that reverse mortgages are a lush isle of tranquility in the midst of unsettled seas. Figures from HUD show that year-to-date — by which they mean the fiscal year (October 1, 2006) until August 15th, there has been a 45.5 percent increase in FHA reverse mortgage activity, from 65,552 loans last year to 95,370 HECMs during the same period this year.

Why the rise in FHA reverse mortgages?

First, the loans are insured by the federal government, meaning lenders can instantly re-sell such loans.

Second, the concept is getting more attention.

Third, you can bet that some owners age 62 and above with toxic loans are refinancing into FHA reverse mortgages. It’s one way to get rid of soaring re-set costs and all monthly mortgage payments.

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This entry was posted on Monday, September 3rd, 2007 at 6:30 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “How’s The Reverse Mortgage Market?”

  1. JHeart Says:
    September 4th, 2007 at 11:30 am

    Reverse Mortgages are a waste of time for LO’s
    ok for the consumer, but no real money and very slow ,
    sure you see big numbers indicating vaste sums of money to be made but what you dont see is the emmense time involved dealing with these folks not only educating them, often times repeatedly within the same hour, but many follow up calls to remind them who you are and what you talked about. Then there are the would be infighting inheritors, you really stepped into it now ! They all think mom and dad should leave everything to them so now you got them screaming “ELDER LAW VIOLATIONS” ! Reality dont matter you will still spend thousands getting back out of that mess.
    take a vacation until things get back to normal,
    chill, enjoy life, forgettaboutit !

  2. Nathan Says:
    February 9th, 2008 at 4:08 am

    This is very informative!!! What are your thoughts on Reverse Mortgage for a Real Estate Investor that is just starting… in Aussie Land..

    I love reading up on these, tons of great information for someone like me.

    THanks!

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