Warehouse lenders speaking at the Mortgage Bankers Association’s National Secondary Market Conference in New York were bullish regarding their respective companies funding of Home Equity Conversion Mortgages.
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Jack Nunnery, senior vice president of Texas Commercial Bank said HECMs are a nice piece of his institution’s business. It is committed to providing financing for these loans.
Overall, liquidity is good in the marketplace for reverse mortgage loans, he added, and the secondary market execution is coming back to some level of normalcy.
Elaine Batlis, senior vice president, warehouse lending manager at Silvergate Bank, said there are a number of strong players that are secondary market investors for HECMs, so from a warehouse lender’s perspective, it is a good product. During her presentation, Batlis said that for any loan product originated, warehouse lenders would like to see lenders have multiple exit strategies.
Separately, a representative of Fannie Mae warned reverse mortgage lenders regarding the growing number of scams in that line of business.
Kimberly Ellison, senior industry relations manager for the GSE, speaking on a quality assurance panel at the MBA’s Loan Production Conference, also in New York, said the scam involves a property the perpetrators acquire through a real estate owned sale.
The senior is told it is part of a “free home” promotion run by the government. It is then flipped to the senior; to acquire the property, the scammers use a reverse mortgage taken out in the senior’s name and retain the proceeds for themselves.