Thousands of seniors have received reverse mortgage quotes and found out that reverse mortgage is their ticket to a more satisfactory retirement life. Since reverse mortgage is not for everyone, it is important to make a research to determine whether it is the solution to your specific needs.
The US Department of Housing and Urban Development (HUD) announced last August 2017 that they are going to lower principal limit factors starting October 2, 2018. As a result, home equity conversion loan (HECM) originations nosedived 17.6% in February. However, according to the latest information from Reverse Market Insight, Inc originations are still relatively high because the number of loans in February is still higher than other months except for January and March.
Loan originations from HECM had a total of 5,195 last February compared to the high of 6,308 in January. In fact, January has posted 32.95 increase compared to December. According to Reverse Market Insight data, decline in wholesale loans was at a slightly faster pace compared to retail loans in February.
Whole sale loans had a total of 2,546, an 18.4% decrease over the month. Total of retail loans for February went down by 16.9% from January. The report also revealed that of the 10 lenders where most of HECM loans originated from last February, only two were able to post increases, American Advisors Group, 2% and High Tech Lending, 70.4% growth.
However, the remaining 7 lenders posted an increase in loan originations year-to-date if compared to a year ago. In terms, of year-to-date volume growth, Fairway Independent has taken the spotlight with its impressive 208.4% increase. Meanwhile, Fairway also followed the trend of declining volume for the month of February with a 36.9% decline. The most number of retail loans in February originated from American Advisors Group with 10,980 originations or 18.5% of the market share.
You can easily get instant reverse mortgage quotes from top reputable lenders but it is wise to make comparisons to gain the best deals. Talk to a professional on reverse mortgage to understand the financial tool and how it works. Knowing all the facts will help you reach an informed decision.