Linkage 8/20/18

California: “Housing market retreats”, Inventory up 11.9% YoY

Some markets like Huston are still hot due to influence of Oil Prices, but many are starting to follow California’s lead as affordability as higher interest rates and rising home prices eroded housing affordability has dampened demand.
Helping the baby boomers be more self-reliant is one of the main benefits of the HECM. Not everyone has an inheritance to fall back on. #Retirebetter
With the current rush of private reverse mortgage products hitting the market shopping for the product is even more important to ensure you get the right product/rate/margin for your situation. This financial planner and Forbes contributor recommends getting at least 3 different quotes.
Will Zillow cannibalize its primary digital ad business with its foray into the mortgage business? Are you going to continue to advertise on their platform or are the leads now suspect?
Over the past 5 years, FHA’s implementation and use of the False Claims Act was the primary reason the larger banks curtailed their FHA lending. It seems pretty suspect that days after Wells Fargo agreed to the $2B fine that they are suddenly open curtailing its use. My question would be: For how long and what guarantees do these lending institutions have that it wont just be re-instituted?
The problem with this argument is that it is rare to see an originator that can sell both a HELOC and HECM. The HELOC space is dominated by Wells/BofA/Chase/Citi and none of those financial institutions offer a HECM. This means that the consumer is the one that loses out as they only have one option to choose from. If we had more comparisons presented to the 62+ customer I am confident the bias against the HECM would start to disappear.

 

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