I just read an article about the Reverse Mortgage business that I found disturbing and felt the need to pass along. For those on the board who are, or who have loved ones who are, eligible for reverse mortgages (at least 62 years old) take note!
Ex-subprime loan officers eye booming senior market
NEW YORK (Reuters) - Jobless subprime mortgage specialists are looking for employment in the booming market for loans to senior citizens, mortgage market executives said on Tuesday.
Between 12,000 to 15,000 displaced mortgage lenders may begin to seek employment in the growing market for reverse mortgages, an increasingly popular home equity loan for homeowners who are 62 years old or older, Goldman, Sachs & Co. (GS.N: Quote, Profile, Research and Wells Fargo Home Mortgage executives said at a mortgage conference.
"A percentage of them will migrate into the reverse mortgage business, but it's very specialized," Jeffrey Taylor, Wells Fargo's vice president of senior products, said during a Mortgage Bankers Association conference in New York.
Some bankers worry the market's rapid growth may make reverse mortgages vulnerable to fraud and increased litigation, which has plagued subprime loans -- mortgages to those with weak credit histories.
"As you look at what's going on in the subprime market, are those the types of folks who are really appropriate for pursuing reverse mortgages?" asked Rolf Edwards, a vice president at Goldman, Sachs & Co. in New York.
LINK: http://www.reuters.com/article/gc06/idUSN2243304020070522?src=052207_1641_DOUBLEFEATURE_
Ex-subprime loan officers eye booming senior market
NEW YORK (Reuters) - Jobless subprime mortgage specialists are looking for employment in the booming market for loans to senior citizens, mortgage market executives said on Tuesday.
Between 12,000 to 15,000 displaced mortgage lenders may begin to seek employment in the growing market for reverse mortgages, an increasingly popular home equity loan for homeowners who are 62 years old or older, Goldman, Sachs & Co. (GS.N: Quote, Profile, Research and Wells Fargo Home Mortgage executives said at a mortgage conference.
"A percentage of them will migrate into the reverse mortgage business, but it's very specialized," Jeffrey Taylor, Wells Fargo's vice president of senior products, said during a Mortgage Bankers Association conference in New York.
Some bankers worry the market's rapid growth may make reverse mortgages vulnerable to fraud and increased litigation, which has plagued subprime loans -- mortgages to those with weak credit histories.
"As you look at what's going on in the subprime market, are those the types of folks who are really appropriate for pursuing reverse mortgages?" asked Rolf Edwards, a vice president at Goldman, Sachs & Co. in New York.
LINK: http://www.reuters.com/article/gc06/idUSN2243304020070522?src=052207_1641_DOUBLEFEATURE_