Reflecting on reverse mortgage spokespersons, marketing methods
National Mortgage News
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As major players in the mortgage market make big bets on a future boom in reverse mortgages, it's worth looking at changes over the years in how they are marketed. Following developments in regulation, companies are more limited in how they can advertise to Americans. One of the main methods in past decades was to gain trust through a famous actor of the time via TV commercials. These methods are starting to see a shift, said Wayne Stanley, president and CEO of marketing firm Bowe Digital, which specializes in the land title insurance industry.? Because of greater scrutiny from regulators like the Consumer Financial Protection Bureau, marketing these loans on television has become less common.? In 2016, the CFPB ordered three firms to "cease deceptive advertising practices, implement systems to ensure they are complying with all laws, and pay penalties."?
Terming it as an opportunity offer a more comprehensive solution than merely providing warehouse credit, Huntington National Bank started a corporate mortgage finance business. Ken Logan, an industry veteran of over 35 years, including 12 years at Wells Fargo, has joined Huntington as senior managing director. Besides providing warehouse lending, the unit will provide financing on mortgage servicing rights to independent mortgage bankers, financial institutions and real estate investment trusts among other owners of mortgage assets that want to monetize their investment, Logan said in an interview.
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While the downward movement in mortgage rates is easing some consumer anxiety, it's not translating into a significant overall boost for the housing market's outlook yet, according to Fannie Mae. An uptick in Fannie Mae's latest Home Purchase Sentiment Index came primarily from interest rate expectations, with a 10% surge in the share of consumers expecting them to decrease over the next 12 months. Between July and August, the percentage expressing that view increased from 29% to 39%. At the same time, the share that earlier thought rates would head upward fell, shrinking from 31% to 26%.?
As the outlook for housing and mortgages becomes brighter, those looking for strategic entries into all or parts of home lending are now making acquisitions. The latest deal involves Realpha Tech Corp. — a real estate company that claims its technology allows for commission-free home buying — purchasing Debt Does Deals, a mortgage broker that does business under the name Be My Neighbor. A deal from last week, OCMBC's pick-up of the assets of Homestar, was made to give the purchaser Ginnie Mae issuer capabilities. Another recent transaction was a publicly traded distillery buying mortgage firm, Beeline, helping both with liquidity.
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Expert Mortgage Banker
2 个月Every HECM loan I looked at was destined to fail. Make them a HELOC with Mandatory Escrows for Taxes and Insurance. I did not originate one HECM Loan in 44 Years because I thought they were predatory. Look at the Margins these smoke and mirror people were charging - Upsell for Gain on Sale 103.750% of Par.