Generation Mortgage to Exit Reverse Mortgage Business
Generation Mortgage, according to an article published on Reverse Mortgage Daily, will cease reverse mortgage originations in both its wholesale and retail departments effective October 9.
The company's decision to cease operations has been attributed to highly regulated environment which has affected the industry in the past year.
Colin Cushman, CEO of Generation Mortgage stated:
“The decision to exit the origination business was not an easy one, but was made inevitable by the wave of recent regulatory changes. As a result of those changes, the industry has seen a reduction in the number of units, as well as a reduction in loan balances, significantly reducing origination revenues while increasing expenses.”
In short, the changes that have made the reverse mortgage a more advantageous, long-term retirement planning tool for borrowers has made it harder for some lenders to originate or stay competitive.
While this news is surprising, I continue to embrace the changes of the past year because I am in the business of helping seniors discover the potential benefits of the reverse mortgage program, not as a last resort, but as a retirement planning tool.
In addition, the fact that a reverse mortgage is no longer a loan of last resort may be one of the reasons why the value of reverse mortgage originations have decreased. Any time an industry wide change happens, there is bound to be some push back, especially when it concerns the reputation of a program.
However, the slow climb to victory is just around the corner for the reverse mortgage, especially as more positive stories about the reverse mortgage come to light. The month of June and July saw a surge in positive press for the reverse mortgage and, as more potential clients and their caregivers realize the reverse mortgage is a helpful tool with which to plan retirement, the more the industry will see an increase in the upcoming months.
It's tough to play the waiting game but I am confident in the reverse mortgage and its ability to thrive in any environment.
Generation Mortgage, in the meantime, will continue to honor current loans but will no longer accept new applications:
“We will continue servicing all existing loans and funding all loans currently in process. As always, we are committed to providing our senior clients with our award-winning exceptional service on their accounts.”
There is nothing set in stone but I believe in the reverse mortgage as a program that continues to help seniors in the future and in the power of the industry. It's only uphill from here.
Interested in a reverse mortgage or simply want more information? Give PS Financial Services a call at (888) 845-6630 or via email at firstname.lastname@example.org. We don't pressure those who inquire. We are simply here to help.