Reverse mortgage bonds hit 2016 high

by Ryan Smith27 Sep 2016
About $996 million in new Home Equity Conversion Mortgage-backed security pools were created during August, a high for the year, according to a report by Reverse Mortgage Daily.

August’s HMBS issuance total was up 41% from July’s total of $704 million, and 36% higher than the $730 million reported for August of 2015, Reverse Mortgage Daily reported.

Production of original new loan pools fell slightly in August, but there were $321 million of original pools backed by seasoned HECMs, according to the report. The largest pool was backed by reverse loans that averaged over 10 years old.

Total outstanding HMBS rose to $54.7 billion, a $325 million increase from the previous month, Reverse Mortgage Daily noted.
 

COMMENTS

  • by Judy Taylor | 10/2/2016 2:49:37 PM

    The reverse mortgage program has saved my parents retirement.
    Our experience is one worth sharing, some things we learned along the way.

    Myths:
    - Expensive
    - The bank owns the home
    - Heirs won’t inherit anything

    I highly recommend you visit this comparison website, Click Quote Save dot com, they found us a lender who charged $0 upfront fees (savings of $6,000).
    We discovered that larger lenders charge more fees and it's the same exact program. Click Quote Save found us a bank that waived the origination fee without having to hassle and waste time.


    The title/ownership remains in my parent's name and if home values increase I will inherit the remainder of the equity.

    My parents are saving $24k/yr by not having a mortgage payment, and I don’t have to worry about their financial situation. They don’t need my assistance, everyone wins.

    If home values decrease or they live for another 30 years, I’m perfectly happy not inheriting any $ or the home. I just wanted them to have a comfortable retirement.
    Don’t believe all the negative comments without doing your research first. Like any other service and industry, there are good lenders out there.

    Best of luck.
    Judy Taylor

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