Nov/Dec 2023 RMM

Partnership you can trust. Dedicated to never competing with you - your success is our success. Ready to experience the difference? Visit Deep Industry Experience 96% Borrower Satisfaction Rating Independence and Alignment with Clients Robust Specialized Technology Reverse Mortgage Is Our Core Competency © Celink. All rights reserved. NMLS #3020 - Compu-Link Corporation dba Celink (WA license# CL3020 and 603 018 607) more quickly than investors expected, cutting into their returns, says Michael McCully, a partner at New View Advisors in Naples, FL. As a result, investors are now paying less for HECMbacked securities, which affects the profits of reverse mortgage originators, he says. They can respond by raising interest rates, which reduces loan proceeds, he says. But then fewer borrowers qualify. There also are now fewer investors interested in the bonds, McCully says. “It’s a thinner market.” Industry executives acknowledge the unusual dynamics of the recent bond market. However, they are hopeful that growing volume will restore confidence. “Regardless of what’s happened over the last 12 months, we still see the opportunity of unlimited growth,” Norman says. “I do think that when interest rates stabilize, it is going to open up a market for us because there’s been a lot of pent-up demand.” Norman measures that demand, in part, through the growing volume of questions coming into FAR on how a reverse mortgage can factor into retirement planning. The questions come from seniors but also from the accountants and financial planners who advise them. “I’m not a believer that a reverse mortgage is for every single homeowner,” Norman says. “But if you look around and talk to the influencers in this space, what we’re finding is that those individuals are starting to see the real advantages of a reverse mortgage.” Michael McCully REVERSE MORTGAGE / NOVEMBER–DECEMBER 2023 23