Archive for April, 2008
Reverse Mortgages and Subprimes - Are there Parallels?
Reverse Mortgages and Subprimes - Are there Parallels?,
As the reverse mortgage industry expands and constantly introduces new (and confusing) products, some people are beginning to wonder whether reverse mortgages are destined to become the next subprime mess.
The same type of financial engineering and securitization that repackaged regular mortgages (once held by local banks) into exotic [...]
HECM or HELOC? A Tool to Help You Decide
HECM or HELOC? A Tool to Help You Decide,
In a previous post we noted an important fact largely ignored in the plethora of recent books and articles on reverse mortgages: the majority of reverse mortgages (at least HECM reverse mortgages) terminate within seven years of their origination. For many of these borrowers, a [...]
HECM Mortgage Payoff Types by Borrower Age
HECM Mortgage Payoff Types by Borrower Age,
We came across this table that was part of a presentation at the Mortgage Banker’s Association 94th Annual Convention. The table shows, by borrower age, the cause for HECM reverse mortgage loan payoffs.
We’ve previously written about the surprising fact that the majority of HECM loans are [...]
HECM Lender Comparison 10/31/2007 vs 10/31/2006
HECM Lender Comparison 10/31/2007 vs 10/31/2006,
In a prior post we examined evolution of the HECM market over the past two years (ended 10/31/06 and 10/31/07) focusing on the geographic location of HUD home equity conversion mortgage endorsements. The table below examines the evolution of lenders’ HECM market shares and growth over the same time [...]
HECM Market Comparison 10/31/2007 vs 10/31/2006
HECM Market Comparison 10/31/2007 vs 10/31/2006,
Much has changed over the past year in the HECM loan market: Florida has taken over from California as the reverse mortgage activity “hot spot” in the U.S.; new products like the HECM 100 and HECM 125 have emerged, and the overall volume of HECM loans has increased substantially. We [...]
HECM Growth By State
HECM Growth By State,
Our prior use of a “heat map” showing Home Equity Conversion Mortgage Growth in U.S. States was well received by visitors so we thought we’d make it a monthly feature using data from HUD’s monthly HECM activity reports.
The map below is based on percentage changes HECM growth rates for the 12-month period [...]
