Reverse Mortgage Guide

Business is booming at HUD. In the first two weeks of December the federal department received 19,342 FHA mortgages applications and of this number 6,027 — nearly one-third — were from reverse mortgage borrowers.

During the period 28,810 loans were endorsed (insured) by HUD and of this number 4,073 were HECMs. (It’s possible for there to be more endorsements than applications because the numbers are a snapshot of where things are at a given time and not a total.)

Only 212 HECMs were used to refinance existing ARMs — a number which suggests that few reverse mortgages are being used to escape from toxic loans.

HUD estimates that it will insure 117,000 HECMs in fiscal 2008, but at current rates they seem to be below target levels: 24 reporting periods x 4,073 loans = 97,752 projected loans.

But, this is likely a slow period given holidays and such. We need a few more reports to see how the HECM program is really shaping up.

This entry was posted on Tuesday, January 1st, 2008 at 2:12 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.