Reverse Mortgage Daily - Latest Comments in National Title Company Breaks into the Reverse Market

Re: National Title Company Breaks into the Reverse Market

reversespecialist — Thu, 15 Sep 2011 10:49:17 -0000

America's Reverse Title (ART) is a National Provider of Title Services for Reverse Mortgage Transactions.

ART adheres to applicable state and and county requirements pursuant to title and closing transactions.

Re: National Title Company Breaks into the Reverse Market

The_Cynic — Tue, 14 Jun 2011 12:19:21 -0000

Dean,

Huh? HECM drop out rates are lower than the drop out rate for forward mortgages --- following counseling? I did not know those borrowers took counseling. It seems you have stumbled into a new truth. That is exactly what I meant by compared to what.

Not long ago RMD ran a survey on the percentage of borrowers who do not close a HECM following counseling. Well over 50% of respondents believed it was 20% or less. The truth is it is 27% following FHA Case Number assignment alone. The only stats I have are those related to FHA Case Number assignments. It does not include counselees who never reach the assignment stage.

Facts are facts. It is not negativity. Interpreting our endorsement rate as a C is not negative. It seems you are calling the forward drop out rate as worse. But again, compared to what?

Re: National Title Company Breaks into the Reverse Market

dean810 — Tue, 14 Jun 2011 08:51:47 -0000

"With reverse mortgages, there’s less fallout on the purchase side?" Compared to what?
As compared to traditional forward purchase loans - higher rentention of closings. I'm sure some reverse professionals could appreciate some enthusiasim over negativity

Re: National Title Company Breaks into the Reverse Market

dean810 — Tue, 14 Jun 2011 08:32:03 -0000

HECM Reverse loans have Less fallout than traditional forward purchase loans , thanks for the negativity!

Re: National Title Company Breaks into the Reverse Market

The_Cynic — Mon, 13 Jun 2011 14:16:59 -0000

What odd comments.

With so few HECMs for Purchase what is the significance of this statement: "With reverse mortgages, there’s less fallout on the purchase side?" Compared to what? That response always comes up when the issue of high costs arise. It is at least as appropriate here.

Then comes: "Once the counseling is started, [the loan] usually goes through...." Where is this stuff coming from? James Veale has stated that using a four month lag principle HUD stats show that in the last 39 months only 74% of all apps which received FHA case numbers (that means AFTER counseling) ever got endorsed. When I was in school that was a C at best. Would they say the same if the rate was only 50%? Worse, recently I calculated that the conversion rate is dropping slightly down closer to 73%.

So how is that a great pull through or conversion rate? These folks seem to be novices in the reverse world. Their overenthusiastic statements seem to bear that out.