The latest data shows that Reverse Mortgage Application volume in January was down about 50% from last year. Unfortunately this is no suprise. in my opinion; here's why:
1) The ridiculous 10% limit cut last year has made it impossible for thousands (millions?) of people to get a Reverse Mortgage because they now don't qualify for enough to pay off their existing loan.
2) The continued slide in home values is having the same effect.
3) The absurd new rules about ordering appraisals don't help anyone either. HUD has now required all appraisals to be ordered from Appraisal Management Companies (AMC's) that are usually bad for everyone. They pay appraisers a fraction of what they used to get and obliterate any accountability to teh appraiser when they screw up.
4) I'm not sure how much this will affect overall volume, but it has now been SIXTEEN MONTHS since the Home Economic Recovery Act (HERA) was passed to allow Reverse Mortgages for Co-ops to go into effect. We are still waiting for HUD to get this going.
It is a very different world today for Reverse Mortgage borrowers. There are millions who need one and unfortunately, the government is not making it easier for them to get one.
Comments(0)