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Posts Tagged ‘MetLife’
Wednesday, November 4th, 2009
 With the 2009 fiscal year ending on September 30, this month’s HECM volume report revealed a new list of the top 10 reverse mortgage lenders, very much changed from that of last fiscal year. The list is below, compared to that of 2009 FY. However, given how close many of the lenders are to each other in terms of the number of HECMs they endorsed, it is by no means clear how the list will shake out over the next few months.
October 2009:
1. Wells Fargo
2. Bank of America
3. MetLife Bank
4. Financial Freedom Acquisition
5. One Reverse Mortgage
6. 1st AAA Reverse Mortgage
7. First Mariner Bank
8. Security One Lending
9. Harvard Home Mortgage
10. Stay in Home Mortgage
Fiscal Year 2009:
1. Wells Fargo
2. Bank of America
3. World Alliance Financial Corp
4. Financial Freedom
5. One Reverse Mortgage
6. MetLife Bank
7. Countrywide Financial
8. Generation Mortgage
9. Urban Financial Group
10. 1st AAA Reverse Mortgage
Thus, from last year’s top 10, only 6 remain in the top 10 for October. The complete list for October can be found on the HUD website. The changes will also be reflected on the Reverse Mortgage Guides website in the Lender Directory in the near future.
Tags: 1st AAA Reverse Mortgage, 2009 FY, Bank of America, Countrywide, financial freedom, First Mariner Bank, generation mortgage, Harvard Home Mortgage, hecm, hecm volume, HECM volume report, HECMs, HUD, list, MetLife, One Reverse Mortgage, reverse mortgage, reverse mortgage lender, reverse mortgage lenders, reverse mortgages, Security One Lending, Stay in Home Mortgage, top 10 list, Urban Financial, wells fargo, World Alliance Financial Corp
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Monday, October 5th, 2009
 September’s HECM volume report as published by HUD (U.S. Department of Housing and Development) showed that the number of HECMs endorsed increased by about 500 loans from August to September. The number of HECMs endorsed in September was 9,473, while 8,933 HECMs were endorsed in August. However, this number does not reflect the dramatic increase in the number of case numbers assigned the last week in September during the final days of the former PLF limits. As such, the number of HECMs endorsed should rise rapidly in October and November, as they are processed and closed.
In the meantime, the HECM lenders in the top 10 remained unchanged from August. These top 10 lenders are measured by the total number of HECMs endorsed so far this year, explaining why some lenders that have left the reverse mortgage business are still in the top 10. The list is as follows:
1. Wells Fargo
2. Bank of America
3. World Alliance Financial Corp
4. Financial Freedom
5. One Reverse Mortgage
6. MetLife Bank
7. Countrywide Financial
8. Generation Mortgage
9. Urban Financial Group
10. 1st AAA Reverse Mortgage
It will be very interesting to see if this list changes in the next two months as the number of HECMs endorsed increases dramatically. The complete list for September can be found on the HUD website. The changes will be reflected on the Reverse Mortgage Guides website in the Lender Directory within the next week.
Tags: 1st AAA Reverse Mortgage, August, Bank of America, Countrywide, financial freedom, generation mortgage, hecm, HECM volume report, HECMs, HUD, MetLife, One Reverse Mortgage, PLF, reverse mortgage, reverse mortgages, September, top 10 list, Urban Financial, wells fargo, World Alliance Financial Corp
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Thursday, October 1st, 2009
 Financial Freedom announced that effective immediately, it too is discontinuing fixed-rate reverse mortgage loans in Illinois. This comes after Bank of America stopped offering its fixed-rate product in Illinois. All these changes are due to concerns about the Illinois High Risk Home Loan Act (HRHLA) which only applies in the state of Illinois. The act is designed to protect borrowers against high-cost loans, and applies to all kinds of loans and mortgages. Under the threshold set by HRHLA, many fixed-rate products are high cost, since the total closing costs often exceed 5% of the principal limit of the loan.
It is important to note that the fixed-rate product changes in Illinois do not affect any other states. Meanwhile, borrowers in Illinois can still complete reverse mortgages using the LIBOR, while local lenders wait for changes to the HRHLA to be enacted. That said, MetLife and Reverseit are still offering their fixed-rate products… at least for the time being.
Tags: Bank of America, financial freedom, fixed-rate, High Risk Home Loan Act, HRHLA, Illinois, LIBOR, MetLife, reverse mortgage, reverse mortgage loans, reverse mortgages, Reverseit
Posted in Consumer News, Industry News | No Comments »
Wednesday, September 16th, 2009
 Meg Burns The FHA Director of the Office of Single Family Program Development, Meg Burns, started a commotion at the MBA Conference in San Diego last week when she mentioned that the FHA was looking into making some changes to the reverse mortgage product. Some of the proposed changes include introducing new products such as the HECM Mini. While the HECM Mini has yet to be officially released, and there are certainly some kinks and details to be worked out, the gist of the product seems to be as follows:
Right now, the HECM is a one-size-fits-all product. Borrowers are not able to choose how much of the home’s equity they would like to use or how much income they would like to receive from the home. The HECM Mini would enable a borrower to borrow against smaller amounts of their home equity to obtain the funds they need at a given period of time. The fees for the loan would be lower, so that it might well serve those with 1-3 years remaining in their home.
While no specific numbers were floated for the FHA’s HECM Mini, I have a feeling it may resemble MetLife’s proposed HECM II in fee structure. This would mean that there would be no upfront mortgage insurance premium, with the mortgage insurance premium instead being paid/assessed annually. The product would also feature lower LTVs than a traditional HECM. MetLife’s HECM II assumes 3% annual appreciation.
Now obviously the HECM II is not the same as the HECM Mini, but again, since no finite details for the HECM Mini have been announced, the HECM II provides a structure for thinking about what the HECM Mini might look like.
The HECM Mini could vastly benefit seniors, enabling them to choose a smaller principal limit if they would like it. Right now a reverse mortgage is a longer term product, but the idea of seniors being able to borrow against their home as needed with lower fees is one that will likely be agreeable to many seniors. Let’s hope the HECM Mini comes out soon.
Also, if anyone knows anything more about the proposal, please feel free to comment below.
Tags: FHA, hecm, HECM II, HECM Mini, home equity, MBA Conference, Meg Burns, MetLife, reverse mortgage
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Wednesday, August 5th, 2009
 HECM volume increased dramatically this month. 9,830 HECMs were endorsed in July, up from 8,633 last month. This is a good sign if 2009 HECM volume is to surpass the HECM volume in 2008.
The same 9 lenders continued to possess an increased market share despite one of them (World Alliance Financial Corp) going out of buisness last month. One wonders if the increased number of endorsed HECMs from World Alliance Financial Corp (also known as Senior Lending Network) are a result of them trying to close out their pipeline as fast as possible. World Alliance Financial Corp rose to the #3 spot this month from number 4 a month ago. It will be interesting to see if they remain in the #3 spot next month.
The top nine lenders are ordered below with rankings determined by the number of HECMs endorsed by the lenders YTD. Financial Freedom only endorsed 10 HECMs last month, while Countrywide endorsed 8. One Reverse Mortgage surpassed Countrywide this past month in HECMs closed YTD. Countrywide was acquired by Bank of America back in January, and it will be interesting to see if the HECM volume attributed to them continues to decline as well (so far it looks as if it has).
Finally, it is important to note that only nine lenders were highlighted because several lenders, led by 1st AAA Reverse Mortgage Inc. are clustered under Urban Financial. This group has closed between 900 and 960 leads so far this year, but is still well under Urban Financial’s totals.
Top Nine HECM Lenders by Volume – June
1. Wells Fargo
2. Bank of America
3. Financial Freedom
4. World Alliance Financial Corp.
5. Countrywide
6. One Reverse Mortgage
7. MetLife
8. Generation Mortgage
9. Urban Financial
Top Nine HECM Lenders by Volume – July
1. Wells Fargo
2. Bank of America
3. World Alliance Financial Corp.
4. Financial Freedom
5. One Reverse Mortgage
6. Countrywide
7. MetLife
8. Generation Mortgage
9. Urban Financial
The complete lender list can be found here.
Tags: 1st AAA Reverse Mortgage, Bank of America, Countrywide, financial freedom, generation mortgage, hecm, HECM volume report, July, June, lender, lender list, lenders, MetLife, One Reverse Mortgage, reverse mortgage, reverse mortgages, Senior Lending Network, Urban Financial, wells fargo, World Alliance Financial Corp
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