HECM Margins Remain Stable at 1.98%

Margins on adjustable-rate reverse mortgage loans averaged 1.98% in October, according to HECM analytics provider Baseline Reverse.  This is up slightly from the recently adjusted average for September, which is now 1.97%, but down slightly from August’s 1.99%.... [Read More]

December 13th, 2018 | Published in HOUSINGWIRE

HECM Margins Stabilize at 2.0%

The average margin rate is up slightly from 1.99% in August, indicating that it is remaining relatively stable now that the industry has adapted to reverse mortgage program changes that went into effect in October 2017.

Following the changes, the industry saw margins fluctuate as lenders struggled with how to remain competitive and make up for a decline in profitability. In January, margins were averaging 2.54%, according to Baseline data.

Now, it seems things have normalized with margins settling in the 2% range.

Baseline President Dan Ribler said the average margin range has remained pretty tight since May, moving between 1.99% and 2.06%… [Read More]

November 12th, 2018 | Published in HOUSINGWIRE

Finance of America issues second round of defaulted reverse mortgage bonds

Finance of America is back with a second round of defaulted reverse mortgage bonds. The $399 million offering is a solid marker of investor appetite for HECM-backed securities. – According to Moody’s Investors Service, Finance of America Structured Securities Trust 2018-HB1 has a loan-to-value ratio that is about 10 percentage points lower than the deal completed previously completed by the company. Its weighted loan-to-value ratio was 94.72% compared with an 106.4% LTV on the previous deal. … [Read More]

October 05th, 2018 | Published in HOUSINGWIRE

Baseline stakes its claim in HECM space

Analytics provider Baseline is staking its claim in the reverse mortgage space. The firm offers clients a deep dive into HECM data with origination trends, performance stats and endorsement info – and companies are taking note. Baseline launched two years ago, but it took time for the company to gain traction. Now, President Dan Ribler said it has picked up significant market share. “Almost half of the broker dealers in the space subscribe to a service we have that looks at every loan ever created in the reverse space and allows them to  … [Read More]

October 04th, 2018 | Published in HousingWire

One Year Later, Reverse Mortgage Leaders Reflect on the October 2017 Changes

It’s been an eventful fiscal year for the reverse mortgage industry. Stemming from the Home Equity Conversion Mortgage program changes last October, the last 12 months have brought lower origination volume, proprietary product innovation, originator diversification, and — most recently — changes to the HECM appraisal process. When last year’s HECM changes hit — with …[Read More]

September 30th, 2018  |  Published in FHAHECMHMBSNewsReverse Mortgage

Kroll Predicts Jump in Proprietary Reverse Mortgage Investment

As reverse mortgage borrower demographics have changed and lenders have expanded their product offerings this past year, new research from the Kroll Bond Ratings Agency foresees rising investor interest in the proprietary market. In anticipation of this interest, KBRA compiled a report — called  “Five Things to Know About Reverse Mortgages”  — for those new to … [Read  More]

September 24th, 2018  |  Published in FHAHECMNewsReverse Mortgage

Baseline Launches Daily Reverse Mortgage Index to Track Rates, Spreads

To help reverse mortgage professionals keep tabs on the market, analytics firm Baseline Reverse last week released a daily HECM index that tracks Home Equity Conversion Mortgage bond prices. Specifically, the index reflects “real-time HECM mortgage-backed securities (bond pricing) for a basket of 2017 PLF Annual LIBOR loans,” according to the company’s website. Baseline Reverse founder … [Read More]

September 17th, 2018  |  Published in Baseline ReverseHECMNewsReverse Mortgage

Reverse Mortgage Securities Production Rises Slightly in August

Fresh on the heels of data showing an increase in reverse mortgage originations for August, a new report reveals that the secondary market had a similar boost as summer comes to an end. Production of Home Equity Conversion Mortgage-backed securities (HMBS) rose from $321 million in July to $340 million in August, according to the … [Read More]

September 12th, 2018  |  Published in HECMNewsReverse Mortgage

Product Diversification Sweeps Reverse Mortgage Industry

Reverse mortgage giant American Advisors Group’s recent announcement that it’s officially a “product-agnostic” company was sure to prick up the ears of entrepreneurial-minded reverse mortgage originators around the country, wondering what the change means for them. AAG’s new business model includes a new forward lending division and real estate brokerage. The Orange, Calif.-based firm’s reworked marketing … [Read More]

August 21st, 2018  |  Published in American Advisors GroupBaseline ReverseFHAHECMMutual of OmahaNewsReverse MortgageReverse Mortgage Funding 

No ‘Race to the Bottom’ in Reverse Mortgage Margin Competition

When the Department of Housing and Urban Development rolled out lower principal limit factors last year, many industry-watchers predicted that reverse mortgage originators would need to begin competing fiercely on margins. While the changes have brought some increased competition, margins on adjustable-rate Home Equity Conversion Mortgages appear to be settling in the 2% range, according … [Read More]

August 7th, 2018  |  Published in Baseline ReverseHECMNewsReverse Mortgage 

Live Well Makes Forward Push Amid Reverse Mortgage Uncertainty

In light of the weakened state of the reverse mortgage market, Live Well Financial has begun rapidly expanding its forward mortgage operations. The Virginia-based lender has maintained a forward channel since its inception in 2005, but its focus has largely been on reverse mortgages, which have historically comprised 80% of Live Well’s business.  Bruce Barnes …. [Read More]

May 28th, 2018  |  Published in HECMLive WellLive Well FinancialNewsReverse Mortgage