Reverse Mortgage Defaults Continue to Decline According to Financial Assessment
Thanks to New View Advisors' latest financial assessment analysis, results are looking quite promising. According to the the analysis, reverse mortgage loans that were originated after the introduction of FAs are showing a lower number of defaults.
"The New York City-based advisory firm released an updated version of its FA analysis this week, probing more than 125,000 Home Equity Conversion Mortgages originated during two distinct periods: July 2015 through September 2017, just after Financial Assessment was instituted in April 2015, and January 2013 to March 2015," according to Reverse Mortgage Daily.
"The team at New View then investigated how many defaults showed in up in each batch, distinguishing between tax-and-insurance defaults and so-called 'serious defaults' — the rate of T&I defaults plus foreclosures and other loans with a 'called due' status."
The default rate and serious default rate dropped .6% and 1.2% respectively show a clear improvement since the introduction of financial assessments.
For more information on how financial assessments are reducing defaults in reverse mortgages, click on the image above.