Op-Ed in Mortgage Origination News: Avoiding Past Subprime Woes When Going in Reversemiércoles, 07 de mayo de 2008
Ms. Boas, president of the Consumer Credit Counseling Service of Greater Atlanta, has written an opinion piece on how she believes reverse mortgage originators can stop the kind of problems seen in subprime credit mortgage lending from recurring in the reverse mortgage market.
We all know this is a challenging time for the mortgage industry. Loss mitigation teams around the country are feverishly working overtime to help borrowers affected by the subprime mortgage crisis. At the same time, executives are looking to the future. They need to sell products that meet revenue and earnings goals and move their companies forward if they want to have long-term success.
There is no doubt that reverse mortgages will be one of the industry’s growth products for the next several years. As the country’s population ages, many of the nation’s 80 million baby boomers will consider tapping into the equity in their homes to help pay for retirement. There are some people predicting that one in five mortgage loans by 2015 will be a reverse mortgage.
The signs of this coming boom are already evident.
As the mortgage industry works through the current subprime crisis, now is a good time to reflect on the lessons we’ve learned and how those lessons can be applied to people who will be taking out a reverse mortgage in the future.