Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
735,718-296
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.93%0.00
MortgageReverse

WSJ: Reverse Mortgage Lenders Cut Fees to Drum Up Business

201004200912.jpg Over the weekend both the New York Time and Wall Street Journal covered how reverse mortgage lenders are lowering costs for consumers. WSJ writer Kelly Green reports that:

Reverse mortgages have long been considered one of the most expensive ways to extract cash from your house. But that is changing as some of the country’s biggest reverse-mortgage lenders are slicing closing costs—helping even some affluent homeowners who want to generate additional income.

Referencing the list of lenders including Genworth Financial Inc.,Bank of America Corp.,Wells Fargo & Co., OneWest Bank’s Financial Freedom and others who have dropped or reduced their origination or servicing fees, or both.

With volume down 22% from Oct. 1, 2009 to March 31, 2010, lenders are lowering costs to help reduce the impact of falling home values and the 10% reduction in the principal limit factors last year says the WSJ.

Made possible by the growth and profitability of Ginnie Mae’s HMBS program, Peter Bell, President of the National Reverse Mortgage Lenders Association said the bonds have become “popular with investors because of their government guarantees and high yields compared with Treasurys.” He added “these bonds also have been more profitable for issuers than selling them to Fannie Mae.”

201004200913.jpg

Reverse Mortgages Now Look Cheaper

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please