Breaking news in the reverse mortgage industry:
Wells Fargo announced at 3:00PM yesterday that it is pulling out of the Reverse Mortgage business altogether. Leaving MetLife as the only major player in this lucrative market serving seniors over 62.
Reverse Mortgages are a safe place for real estate investors to invest making them a favorite financial instrument for Financial Consultants. Banks like to authorize the loans because the FHA is backing them, then resell the loans to investmetn trusts.
MetLife Home Mortgage is the only major player left in this field.
To find out about this home loan financing option for reverse mortgages in Maryland and Washington DC contact John M Bodecker Reverse Mortgages Montgomery County Md
From the WSJ:
HUD declined to comment Thursday. The National Reverse Mortgage Lenders Association, or NRMLA, said in a statement that demand remains strong for the loans, and though Wells Fargo would be missed, the loans are still available. The organization also said has been working with HUD to develop procedures to let lenders assess the loans, and that "it is anticipated that the Department will be issuing a rule change in the future."
Fred Arnold, a mortgage broker with American Family Funding in Stevenson Ranch, Calif., lamented the move as yet another restriction in credit in the housing market, which has yet to recover from the worst bust since the 1930s.
"To get out of that market is surprising, and disappointing for consumers," especially baby boomers who are entering retirement years, he said. "Because of the reach of big banks, the average senior citizen isn't going to have access."
The reverse mortgages made up about 1.2% of Wells Fargo's total mortgage volume. Codel said the move would affect about 1,000 employees, though the bank would try to move them to other areas. The company will continue to service existing loans, but will not create any new ones starting the end of the month.
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