Editors' Note
Written by Erica English and Aman Makkar Monday, 10 November 2008 12:43
Most people in our industry will tell you the reverse mortgage space is small when compared to the mortgage industry as a whole. In fact, according to the HECM MIC Endorsement Report provided by Reverse Market Insight, the top 10 HECM lenders in the nation retain 37.86% market share thus far in 2008. While market share for the top 10 may decrease as more and more originators jump on the HECM bandwagon, we find this to be a much more intimate market place than the traditional forward mortgage market.
Though the industry may be small, as we read the articles submitted every month, we are reminded of how much there is to learn as our industry continues to grow and change. In the past few months, we’ve learned about the loss of Medicaid eligibility, trusts and estates, and a variety of other topics.
This month in our feature article, George B. Lopez spotlights REO flipping schemes setup by investors to target seniors. Coincidentally, Ralph Rosynek, our resident underwriter, was confronted with a similar situation as well. However, what’s interesting is just a few years ago investors were not targeting seniors, given the liquidity in the subprime market. These same investors were flipping properties to anyone who could get a subprime loan. Since the subprime market no longer exists, investors have unfortunately adapted to the new environment and found a loophole in the HECM product. We focus on this to stress the importance of being vigilant of those who are simply out to make a profit from the senior population, and do not have their best interest at heart. Everyone who is a part of our industry understands the tender love and care it requires to work with our clients.
We hope you enjoy our November issue and as always, thanks for reading!
Erica English
Co-Editor
Aman Makkar
Co-Editor
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