Article: The promise and perils of reverse mortgages.(Origination Strategies)

With the FHA commissioner whispering in one ear and the former president of Ginnie Mae whispering in the other, it's hard not to get excited about reverse mortgages. In fact, 55,218 Home Equity Conversion Mortgages (HECMs) have been originated in just the first quarter of 2008-more than in the entire year of 2005. Combine an estimated growth rate of 70 percent a year for this product versus declining volume in traditional mortgage products, and it becomes clear why you cannot afford to ignore this market opportunity. But then, even the most hopeful of expectations can occasionally go awry. "We have a world-class baggage system that is going to work perfectly on day one." ...

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