HUD Scores Big With HECM Program
March 19th, 2008
- Reverse Originations Slow
- HUD Projections Falling Short
- “Look Back” When Thinking of Gifts
- Reverse Mortgage Growth At Record Level, Yet Constrained
- Saver reverse mortgage shows modest gain
While the financial world looks more-shaky than anyone would prefer, HUD says the HECM program continues to boom.
For the last half of February, the 16th through the 29th, HUD says it insured 5,703 reverse mortgages. This is a very good number in general and an especially good number considering that the month was short a day or two.
HUD estimates that it may do 130,000 HECMs this year, a record if the prediction holds. Actually, the run-rate for the last half of February is above the projection.
We don’t know all the reasons for the growth of HUD-backed reverse mortgages but some reasons seem to stick out.
First, the program is better known than in the past.
Second, in a period of difficult economics, the FHA reverse mortgage program stands out as one of the better and saner mortgage options for those who qualify.
If the mortgage marketplace in general continues to erode you can bet that reverse mortgage volume will grow even more. The HECM is an asset-based loan at a time when an increasing number of people face declining incomes and weakened credit scores.