I just came back from a financial freedom "Road Show" in Long island, New York. They discussed why margins are going up.
They said that they sell all oftheir HECM's to Fannie Mae and Fannie just informed them that instead of paying them something for the HECM 150 (1.5% margin) they would now be paying them less than par and that means that they would be LOSING money on every loan they closed.
This probably means that margins will be higher until the whole mortgage/credit/housing crisis ends.
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