Despite 2024 being a challenging year for sales volume, the reverse mortgage industry is still encouraged by the involvement of Federal Housing Administration (FHA) on issues related to the Home Equity Conversion Mortgage (HECM) program, and attention to reverse mortgage issues. Ginny Mae.
This answer came from the discussion of the leaders of the industry that was there National Reverse Mortgage Lenders Association (NRMLA) Annual Meeting and Exposition in San Diego at the end of September.
Panelists included Mike Kent, NRMLA board chair and head of reverse gear industry relations Liberty Reverse/PHH Mortgage; Jim Cory, managing director of reverse at Guild Mortgage; again Longbridge Financial share price CEO Chris Mayer.
FHA partnership
When asked by the president once HousingWire Editor-in-Chief Sarah Wheeler on FHA’s partnership with the reverse mortgage industry during a difficult time, each leader praised the partnership of their public sector partners.
“The FHA has been a great partner, especially starting in 2023 and continuing into 2024,” Kent said. “They did an amazing job of streamlining the deployment, especially by improving the deployment package and allowing us to deploy early. Once the packages were shipped, their quick turnaround time was amazing. “
At Liberty/PHH, 70% to 75% of loans are now processed and applications are paid before a Ginnie Mae loan is required, Kent said.
“What does this mean for us? It means money,” he said. “I typically buy $40 million to $50 million in mortgages every month, so if I can save $30 million to $40 million that I don’t have to take out to buy, it makes a lot of sense.
“The FHA has done an excellent job and it has been a great partnership. Commissioner (Julia) Gordon said they would do it, they did. It was a really good collaboration. “
Mayer praised the cooperation of both Gordon and Marcia Fudge, the former secretary of the organization US Department of Housing and Urban Development (HUD), with deep concern over the effects any policy development would have on older Americans.
“Seeing the needs of these figures and the importance of the government in helping to help them is something I always think about and appreciate,” said Mayer.
Effects on emergence
Mayer also noted that FHA and Ginnie Mae staff have “shown a real commitment to helping put the industry on a solid footing and thinking about the future.”
“We need two things – a stable base to work on, and we need to stay relevant in the world,” Mayer said. “I think we’re on the verge of losing relevance – or maybe we’ve crossed that line. Being aware of this and taking steps to deal with it is important. Commissioner Gordon’s deep understanding of the program demonstrates a level of care and commitment that is very important to us.”
Cory added that he’s very involved on the origin side, so dealing with back issues can make a real difference in keeping the origin machinery well oiled, he explained.
“I thank the commissioner, his wonderful staff, and the leadership of NRMLA for working on these issues – things that many of you in this room, focused on marketing and innovation, may not always see,” said Cory. “It’s a really big thing. But Chris is right, we can’t just focus on fixing back problems. We need to expand and improve the overall distribution of the product. “
To achieve that goal, Cory wants the reverse mortgage product to become a mainstream financial tool to reach more borrowers.
“A rising tide lifts all boats, and I think it’s important that we work to make this product accessible and widely accepted,” he said.
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