|  |  |  | | | | | Reverse Mortgage Daily | | | | | | | | | | | | | | | | | | | During the National Reverse Mortgage Lenders Association's annual trade show earlier this week in New Orleans, attendees learned just how important the new HECM Saver is to the future of the industry. "If we had not been able to get the HECM saver to market, we would’ve been in a really difficult situation," said David Stevens, Commissioner of the Federal Housing Administration during a speech before over 550 attendees. Facing a $250 million shortfall in the HECM program earlier this year, the administration was forced to act in order to ensure the program could continue to meet the needs of seniors looking to withdraw equity from their home. "I think the revers mortgage program is critically important," said Stevens, but admitted he was worried they might lose the program due to negative economic assumptions and some in Washington who felt FHA didn't take care of some of the risk factors. To offset the shortfall, the administration developed the HECM Saver to provide additional cash-flow to offset any losses from the HECM Standard and not be forced to significantly lower principal limits for the second year straight. Stevens encouraged attendees to embrace the new low cost product to ensure that FHA can keep the HECM Standard alive and thriving. "Inability to implement the HECM Saver, is going to put additional pressure on the HECM standard," he said. "We’ve got a graying population, they will be knocking on the door if this is done the right way."  | | | | | | | | | | | | | | | | | | | | | | | | |  California Reverse Mortgage Consultants announced it has added a new partnership with the San Francisco Federal Credit Union to offer its customers reverse mortgages.
The exclusive agreement provides access to the credit union’s three branches and more than 29,000 members according to Ron Kamler, President of CRMC. ”Partnering with a Credit Union that has such a strong commitment to helping the community is in line with CRMC's values of creating awareness and educating for a better understanding of Reverse Mortgages within the senior community,”he said. San Francisco Federal Credit Union is a not-for-profit, community-based financial institution exclusively serving San Francisco since 1954. Anyone who lives, works, worships or attends school in San Francisco may apply for membership said the company. CRMC tells RMD the partnership is the fourth agreement the company has signed and is a growing part of its overall business. Through Q3, approximately 40 percent of the company’s business comes from these partnerships. ”We are beginning to realize an increase from our Partnership efforts and expect to close Q4 in the neighborhood of 70 percent,” said Kamler. The company endorsed 36 HECM loans during fiscal year 2010 according to data from the Department of Housing and Urban Development.  | | | | | | | | | | | | | | | | | | | | | | | | |  HOMEQ Corporation announced its subsidiary, HomEquity Bank, saw origination of reverse mortgages grow to $52 million, up 77% from Q3 2009. The company's mortgage portfolio balance expanded by 18% to $985 million;
During the quarter encouraging demand was experienced throughout the country and all sales regions performed at levels significantly higher than in prior years said the company. The volume of inquiries and applications continues to grow and the sales cycle is shortening, indicating the strong motivation of new customers to acquire a reverse mortgage says HOMEQ. “We are in the midst of an exciting business evolution based on an intersection of growing demographics, enhanced product alternatives and our 25 years of business expertise”, said President and Chief Executive Officer, Mr. Steven Ranson. “It is estimated that the number of Canadian seniors will grow by 20% in the next six years and increasingly they will rely on HomEquity Bank for flexible and innovative solutions to meet their retirement needs. While the rapid origination growth currently experienced and the incremental cost of being a bank, has had the effect of suppressing net income growth this year, HOMEQ is effectively positioning itself for attractive profit growth in 2011″. Net income for the quarter was $0.8 million ($0.06 per share) compared to net loss of $0.2 million ($0.01 per share) in Q3, 2009. Adjusted net income of $0.13 per share was lower than $0.15 per share earned in Q3, 2009 primarily due to the increase in non-interest expenditure incurred in operating a bank. Adjusted return on equity (annualized) was 8.1% in comparison to 9.7% in 2009.  | | | | | | | | | | | | | | | | | | | | | | | | |  The Wall Street Journal is reporting that many americans are setting themselves up for a retirement disaster.
According to the article, pension funds nor private investors seem to have fully absorbed the grim lessons of the past decade and therefore, returns are going to be much lower. John West and Rob Arnott at Research Affiliates, an investment management firm, in Newport Beach, Calif say they have the numbers to back it up. “I worry a lot about people reaching their golden years and discovering, ‘Oh, I should’ve saved more,’ and ‘Oh, I don’t qualify for Social Security anymore because it’s means tested,’” says Mr. Arnott, a widely respected market strategist. “We’re headed for a retirement train wreck,” he adds, “and it’s going to get really ugly over the next 15 years.” In their latest report, “Hope Is Not A Strategy,” they have some numbers to back it up.  | | | | | | | | | |  | |  | |  |
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