October 2017 changes to the reverse mortgage product has been haunting professionals within the sector and it is still causing concern today. However, reverse mortgage professionals expressed their feelings about the current state of the market and the overall outlook for 2019 is positive.
"[Business will] be better than 2018," said Rich Pinnell, CRMP at Vitek Mortgage Group in Redding, Calif, according to Reverse Mortgage Daily.
"We have to adjust to the new PLFs, so I’d guess half of all of our pipelines became non-doable loans because of the adjustments. We have to look for a different motivation to do a reverse mortgage perhaps, and certainly at a different client profile. We have to start being more refined."
For originators, the sentiment is the same. Changes to the reverse mortgage product challenged companies to create more proprietary products to help folks with specific needs, overcome the challenges of securing a loan that is right for them.
"My outlook is very positive, and that’s really because of the developments in the proprietary/jumbo market since our business is primarily in a high-cost state," said Scott Harmes, division manager at C2 Reverse in San Diego, Calif, according to the report.
With an unsteady 2018 behind them, reverse mortgage professionals seem to have a strong grasp on what adjustments are needed to ensure a successful 2019.
To read more responses from reverse mortgage professionals, click on the image above.