The U.S. Department of Housing and Urban Development recently presented data to the National Reverse Mortgage Lenders Association that showed a series of highs and lows for the industry in 2019.
"The Home Equity Conversion Mortgage (HECM) program has seen incremental change in use cases over the 2019 fiscal year, as well as more visible shifts including year-over-year loan volume, an increase in the average age of a client at the time of endorsement, a reversing trend in refinance activity, and an increase in the dollar value of the number of claims paid," according to Reverse Mortgage Daily.
"In addition to providing updated data on the use of HECM products in fiscal 2019, HUD officials also provided an update on the agency’s forthcoming guidance concerning the retirement of the London Interbank Offered Rate (Libor) as the index for HECM reverse mortgages, while also discussing efforts within HUD that will seek to understand industry pain points associated with changes instituted to the program by the department."
The HUD findings also addressed a number of regulatory issues that plagues the reverse mortgage industry in 2019. That is why the HUD is looking to develop a working group to help clarify the difficult points in new regulation.
To learn more about the HUD's findings and how it plans on helping the reverse mortgage industry in the future, click here.