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Will the Reverse Mortgage Market Stabilize in 2018?

There has been plenty of worry for the reverse mortgage sector following the principal limit factors that were introduced in late 2017. The new calculations has altered the way originators do their job but some believe there are more stable days ahead.

“'We expect that, after an adjustment period through the first quarter, the loan volume will start to return for the reverse professionals that continue to execute their marketing plan and do the heavy lifting,' said Des Lenz, reverse mortgage director at American Pacific Reverse Mortgage Group," according to Reverse Mortgage Daily.

“The need for the loan product did not go away and it will be a possible source of stability for those invested in the stock market, when that market is volatile.” In addition to the adjustment period, experts in the field continuously point to the competition factor that the new rule encourages. A more competitive market lends itself to more activity and a bit more of an even playing field.

"Originators also predict that the coming year will bring a bigger share of the market for Home Equity Conversion Mortgage for Purchase transactions, and even a notable entry of less experienced originators as senior reverse mortgage loan officials leave the industry," according to RMD.

To learn more about this forecast for the reverse mortgage market post-principal limit factor changes, click on the image above.

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