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New Data Suggests Reverse Mortgage Fallout has Begun

The numbers are in and it is not looking food for reverse mortgage volume. Experts predicted a dip in reverse mortgage volume following the October 2 changes and that time has seemingly come.

"With an endorsement decline of more than 17% during March, the industry saw its lowest loan production since July 2017," according to Reverse Mortgage Daily.

"The July figure came prior to the October 2 changes which altered the mortgage insurance premium structure for borrowers and reduced principal limit factors for many."

According to the report, RMI actually believes that this fallout will get worse before it gets better. Regionally, 80 percent of the top 10 reverse mortgage markets saw declines.

This fallout doesn't seem to come as a surprise to professionals in the field who believed that the fallout was inevitable and that competition would be higher than ever before.

We recently reported on the heightened sense of competition with companies trying to offer the lowest rate possible to close a loan. In return, the previous report stated that these companies would incarnation origination fees as a result.

To learn more about this recent reverse mortgage fallout and when it could possibly be resolved, click on the image above.

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