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Originating: Field of Dreams 

Sep 17, 2014By

Ever since the virtual disappearance of the structured finance market after the financial crisis of 2008, reverse mortgage industry participants have waited and wondered when the secondary market for so-called “proprietary” (or non-FHA-insured) conventional reverse mortgages would return. With all of the changes that FHA has made to the HECM program over the past couple of years, including five successive PLF cuts, the imposition of initial disbursement limits, and the designation all fixed-rate HECMs as single-disbursement loans, one would think that the interest of originators in proprietary (or non-FHA-insured conventional) reverse mortgages would be keen and heightened at this time.