Monthly reverse mortgage volume fell, and declining applications indicate additional declines are ahead. A reverse lender that recently received its “Full Eagle” projects it will quadruple its loan origination base, while a reverse mortgage wholesaler expanded.
The Federal Housing Administration reported that it issued 8,933 endorsements for home-equity conversion mortgages during August. Volume fell from 9,381 the prior month, while 9,310 HECMs were endorsed a year earlier.
Through the end of August, fiscal year-to-date HECM endorsements were 105,305, compared to 102,665 during the same period last year.
The report indicated 11,051 HECM August applications were received, edging down from 11,182 in July and 11,877 in August 2008.
Last month, the Office of the Comptroller of the Currency issued a consumer advisory outlining basic facts about complex reverse mortgages. The OCC recommended that seniors consider alternatives to reverse mortgages and be aware that HECMs generally make more sense the longer a borrower remains in the home. The bank regulator also warned borrowers to be wary of anyone trying to sell other products along with a reverse mortgage.
Data reported by the Better Business Bureau indicates Jay Farner is now the CEO of One Reverse Mortgage LLC — the reverse mortgage lending subsidiary of Quicken Loans Inc.
Guardian First Funding Group issued an Aug. 13 announcement indicating it had received its Full Eagle from the U.S. Department of Housing and Urban Development. Guardian Chief Executive Officer Jason Levy predicted in the statement that the New York-based firm will “quadruple its loan officer base and break into the top 20 in HECM HUD rankings.”
Generation Mortgage Co. announced last month the addition of Alison Calamia to its wholesale division. Calamia will provide sales and support to the third-party team as she helps expand correspondent business.
A month earlier, Sacramento, Calif.-based Generation announced the “first-ever” HECM continuing education class for California Realtors. The course, Reverse Mortgage Opportunities and Consumer Protections for Senior Clients, was reportedly approved by the California Department of Real Estate and counts as two credit hours.
| Former Mission Impossible star Peter Graves was selected as spokesman for American Advisors Group, a press release Thursday said. The Irvine, Calif.-based firm is advertising on national television networks as part of a national two-part campaign.
The first part was a television campaign with personalized stories about how reverse mortgages have prevented foreclosures, a Sept. 22 statement said. One borrower reportedly delayed a foreclosure sale by negotiating a principal reduction on a first and second mortgage and financing with a reverse mortgage. Reverse mortgage lender Golden Gateway Financial hopes to generate activity from an online life settlement calculator. |
AAG photo of Peter Graves
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