What many in the reverse mortgage were expecting has actually come to fruition. The FHA Reverse Mortgage Insurance Fund has dipped pretty substantially according to the latest reports.
"The HECM portion of the MMI fund had a projected negative net value of $14.2 billion during fiscal 2017, according to a report on the fund, released Tuesday," according to Reverse Mortgage Daily.
"The projected value based on Tuesday’s report fell roughly $6.5 billion versus estimates based on an actuarial analysis of the fund completed last year by a separate team of actuaries for fiscal year 2016."
It doesn't come as a surprise to many professionals in the reverse mortgage industry, as Reverse Mortgage Daily also reported that the National Reverse Mortgage Lenders Association president and CEO Peter Bell, revealed that the trade group would "plan to lobby to change the way the FHA calculates the HECM's impact on the overall fund."
To learn more about how this impacts the industry and what changes can be made to help change the current analysis of the program, click on the image above.