Reverse Mortgage Industry Convention Highlights Market Shifts and Lending Challenges

The National Reverse Mortgage Lenders Association held its Annual Convention & Expo in San Antonio. Experts advised loan officers on navigating a rate-sensitive environment, noting that most borrowers are now using proprietary products instead of federally insured Home Equity Conversion Mortgages (HECMs). The convention also addressed short-to-close transactions, which can occur due to higher mortgage rates or required life expectancy set-aside for HECMs.

The shift in production away from federally insured HECMs toward proprietary products indicates a change in the mortgage lending landscape. Discussions around short-to-close situations and rate sensitivity highlight ongoing operational challenges for reverse mortgage originators.