Reverse Mortgage Counseling Turnover Lags Behind
A 50 percent mark isn't often a terrible stat, that is, unless you are talking about reverse mortgage counseling turnover. Unfortunately, a new report shows only about 50 percent of folks who go through with reverse mortgage counseling actually close a loan.
“Forty-eight percent of endorsements fell through with respect to counseling sessions before the PLF reductions in October 2017,” said Ibis CEO Jerry Wagner, according to Reverse Mortgage Daily.
“Fifty-one percent of counseling sessions are now falling out. So the lower principal limits are definitely having an effect.”
Ibis Software tracks HECM counseling sessions and release states that point to the troubling stat. Principal limits are just one of the factors pointed out in the report.
“We hear them all,” said Justin Lally, an HUD-approved reverse mortgage counselor, according to the report.
“But most common, I think, is that for one reason or another they’re not happy with the final figures and either cannot or decide not to move forward.”
It is on the top of a list of other factors that have been contributing to such a low turnover in closing loans.
To learn more about why reverse mortgage counseling is failing to lead to more loan turnover, click on the image above.