While the reverse mortgage community had plenty to rejoice about in 2017, experts are saying that could soon turn sour. With reverse mortgage endorsements up in 2017 things may be a little too good to be true and because of that experts are predicting a possible crash.
"The September surge of borrowers racing to beat the Department of Housing and Urban Development’s October 2 principal limit factor overhaul was a major contributor to the uptick in 2017, according to RMI founder and president John Lunde," according to Reverse Mortgage Daily.
"But after the surge comes an expected fall: Last year, Lunde pegged the predicted drop-off in endorsements at about 25%, but he now tells RMD that it could be as high as 30% as the landscape makes things more difficult for certain borrowers."
After the new rules to reverse mortgage lending took place, the 5% rate "floor" was no longer visible according to the report. As a result the report stated that expects rates are falling.
To learn more about the possibility of reverse mortgages' grim future, click on the image above.