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Reverse Lenders Look To New Strategies To Combat 2019 Challenges

2019 is looking more like a chess game for reverse mortgage lenders who are anticipating the impact of program changes and new appraisal rules. To help combat challenges, some companies have already begun to strategize and create new approaches for the ever-evolving market.

“It comes down to one thing: customer acquisition cost,” said David Peskin, president of Reverse Mortgage Funding, according to RMD.

"Customer acquisition cost has always been a consideration, but particularly in light of today’s market, reduced principal limit factors and lower margins for lenders, this cost is all the more prevalent."

Meanwhile, rising interest rates are also being watched closely by lenders. While Federal Reserve chairman Jerome Powell does not hint to a rise in rates for 2019, 2018 has seen a total of three increases.

“The reality is, it will be harder,” says Bruce Barnes, executive vice president for Live Well Financial, of the rising interest rate environment, according to the report.

“You’ll have to work longer to get the same amount of business. There isn’t a rosy picture when you have a shrinking market because of interest rates.”

To learn more about how reverse mortgage lenders are preparing to tackle 2019, click on the image above.

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