Should Proprietary Reverse Mortgage Products be Considered in the HECM World?
The HECM market has had its fair share of high and low points. Now, it looks like originators are starting to play with the idea of introducing proprietary reverse mortgage products into the market.
"These possible products came up during a CEO panel at the National Reverse Mortgage Lenders Association’s annual conference in San Francisco last month, where executives challenged the industry to think beyond the HECM and come up with alternatives," according to a Reverse Mortgage Daily report.
"Tim Linger, broker and owner of HECM Senior Home Financing in Orlando, said he would welcome a new product similar to the pre-Oct. 2 HECM. "
Linger believes that introducing such a product may help ease the effects of the new principal limit factors as well as closing costs, according to the article.
"Following those recent changes, he predicts that his HECM sales will reduce by half without more aggressive lead generation," the report continued.
Linger isn't alone either, there are plenty of originators out there looking for a way to slightly offset the challenges put forth by the principal limit factors. To hear more about proprietary reverse mortgage products and those in support of them, click on the image above.