Reverse Originations Slow

by Peter G. Miller
March 31st, 2008

Reverse mortgage originations slowed during the first two weeks of March, according to the latest figures from HUD.

The newest report shows that 4,888 Home Equity Conversion Mortgages (HECMs) were originated from March 1st through the 15th, a number which is down 14.3 percent when compared with the last half of February. In the last part of February HUD endorsed 5,703 reverse mortgages.

Is this a big deal? That’s not clear, but it’s certainly a curiosity. Why would reverse loan originations decline as the weather improves nationwide and the economic news continues to be discomforting? If anything, you would expect an increase in reverse mortgage activity.

The early March figures suggest a strong need to watch the next set of figures from HUD to see if we have a blip in the marketplace or the start of a trend. If reverse mortgage numbers continue to decline then we would next need to ask why…

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3 Responses to “Reverse Originations Slow”

  1. Dennis Says:

    I can tell you from my own experience that the slow down is coming from the fall in the value of homes. The phone is ringing with many homeowners interested but many homeowners do not have enough equity left in their homes to do a reverse mortgage.

  2. muriel slaney Says:

    The slowdown is due to the fact that seniors have wised up to the fact that the reverse mortgage is nothing more than a land grab. I have one and consider it the biggest financial mistake of my life. If anyone is considering this type of mortgage, please, do nothing until you have spoken with your attorney or financial advisor.

  3. AJ Says:

    Muriel,

    I am sorry to hear you do not feel a reverse mortgage was for you. AARP did a survey last year and 93% were very happy with their loan