Reverse Mortgage Endorsements Could be on the Way Down
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.
