Walter Investment Management Corp.
WAC ("Walter Investment" or the "Company") today responded to the
FHA's announced moratorium on its Full-draw HECM Reverse Mortgage product.
The Company indicated that while approximately 90% of 2012 originations at its
Reverse Mortgage Solutions subsidiary were in the Full-draw HECM Reverse
Mortgage product, it expects to be able to redirect most of the expected
demand for that product into other reverse mortgage products after the
Full-draw product is discontinued. While the Company expects the transition of
borrowers to the HECM Variable Rate Standard and HECM Fixed Rate and Variable
Saver products will likely result in a reduction to the average size of the
initial draws for these borrowers, it anticipates that the impact to Reverse
Mortgage Solutions' overall origination volume will not be significant, as
demand for the reverse mortgage product is largely needs-based and less driven
by the product's interest features.
The Company also strongly supports other changes being considered by FHA for
the program, including establishing formal guidelines for conducting financial
assessments of borrowers and the creation of set-asides for the payment of
taxes and insurance, which the Company believes will enhance the long-term
attractiveness and viability of the reverse mortgage product.
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