HECM for Purchase: Waiting on Texas

Last Updated on Wednesday, 17 March 2010 14:40 Written by W. Scott Norman Wednesday, 17 March 2010 14:31

Since the days of the Republic of Texas, the Texas Constitution prohibited the forced sale of homesteads except for nonpayment of the mortgage, property taxes, home improvement loans or for property settlements in certain divorce and probate proceedings.



After 154 years, the voters of Texas finally approved reverse mortgage lending in 1999.  Since then, over 32,000 senior homeowners have obtained a reverse mortgage.  After ten short years, Texas now ranks third in the United States in total reverse mortgages originated.



According to the Texas Department of Savings and Mortgage Lending, in the last 12 months, the Commissioner has not issued any disciplinary action based on complaints against a reverse mortgage broker or banker.


 

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Great Oak Lending Partners: Grows 4910 Percent to 10th in US for Reverse Mortgage Production

Last Updated on Wednesday, 17 March 2010 14:41 Tuesday, 16 March 2010 16:56

Great Oak Lending Partners, a trusted mortgage company servicing the Mid-Atlantic, today announced that it has been ranked # 10 nationwide for reverse mortgage production and volume for the month of February, as recorded by the monthly HECM endorsement reports. The company was also recognized as the top ranked company in the state of Maryland. This reflects an increase of 3,775 percent over 2009 production and a year over year market share increase of 4,910 percent.

"Reverse mortgages reflect a growing market segment and Great Oak Lending is honored to be recognized as a top producer in this market," said Joshua Shein, partner, Great Oak Lending Partners. "Our production volume is a direct correlation to our experience and expertise in helping the senior market understand this complicated product, demonstrating a confidence among this customer base."

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President of S1L, Forecasts 20% Drop in 2010 Volume but is Optimistic about the Long Run

Last Updated on Wednesday, 17 March 2010 15:09 Tuesday, 16 March 2010 16:17

Torrey Larsen, President of Security One Lending remains very bullish on the long term prospects for Reverse Mortgages, although 2010 volume declines.

“I see three macro trends that I believe will create an increasing awareness and use of Reverse Mortgage products. First there are over 80 million boomers entering their retirement years. They will increasingly need sources of income streams. Secondly, the recent recession has resulted in a significant decline in their retirement portfolios and they are looking for alternative sources of capital to help alleviate their financial crunch,” said Larsen.

“We see a new demographic for the reverse mortgage product increasing and growing as awareness about the product increases,” said Larsen. “The third trend that will develop is the increased liquidity for privately labeled HMBS securities as investors seek alternative income derived products without the negative convexity that traditional MBS hold. This liquidity will enhance product development efforts and increase the product’s reach to borrowers that may not fit the current FHA HECM Borrower Profile,” said Larsen.
 

Read more: President of S1L, Forecasts 20% Drop in 2010 Volume but is Optimistic about the Long Run

NHB Plans to Request Tax Stop on Reverse Mortgages

Last Updated on Wednesday, 17 March 2010 15:09 Tuesday, 16 March 2010 15:42

The National Housing Bank (NHB) is planning to request that the finance ministry exempt reverse mortgage enabled annuity schemes (RMLEA) from income tax. Additionally, the bank has requested that state governments’ guaranteed insurance schemes to expand RMLEA to those who are entering government housing projects.

NHB chairman S Sridhar feels that RMLEA, which was implemented in December 2009 is a much improved version of the old scheme, which debuted in 2007.