The reverse mortgage industry had been dealing with low industry volume in 2018 and attacks against the business as a whole. Despite the odds, the 2019 outlook remains strong for the industry according to a recent report from Reverse Mortgage Daily.
"In terms of the overarching trend of the business that was observed at the beginning of the year, Shelley Giordano of the Academy of Home Equity in Financial Planning (formerly the Funding Longevity Task Force) expressed in an RMD webinar that the entry of a new player in the space in the form of Mutual of Omaha Bank would help to increase accessibility to the product and be a positive force for the industry in 2019," according to the report.
Meanwhile, industry volume also seems to be holding up strong and trending in a positive direction.
“It’s been an interesting year for the industry for lots of reasons, but the lower interest rates on the 10-year swap [rate] (down a point in the past 12 months) have brought down the pressure from product changes implemented in October 2017,” Reverse Market Insight (RMI) President John Lunde told RMD.
"It enables more proceeds to borrowers at rates that don’t strangle lender revenue."
The report also revealed that originators are optimistic about the current and future landscape of the reverse mortgage industry.
To learn more about the current climate of the reverse mortgage industry and the outlook for the remainder of 2019, click on the image above.