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National Reverse Mortgage Lenders
Association
NEWS RELEASE
March 18, 1998
Reverse Mortgage Lenders, Related
Professionals
Create New National Trade Association
March
18, 1998 - Financial services companies that make,
service and invest in reverse mortgages have formed a new national trade association based
in Washington, DC.
The National reverse Mortgage Lenders Association (NRMLA)
will promote public awareness of the reverse mortgage product; keep members informed of
new legislative, regulatory, and market developments; and represent the industry in
Washington.
"The reverse mortgage is a beneficial financial planning
product that unfortunately too few consumers know about", said Jeffrey S. Taylor,
chairman of the board of directors of NRMLA. "As a result, it's a diamond in
the rough that offers immense opportunity to older Americans to help them harness their
most important asset – their house – to assure them of sufficient capital for
living with the comfort of knowing they can stay in their house for years to come.
Taylor continued: "We created NRMLA to make more
Americans aware of the reverse mortgage and how it can help them or their parents. By
drawing on the substantial resources of lenders and other professionals, we can get the
word out. At the same time, we want to make the process of getting a reverse mortgage
simpler and more predictable -- both for lenders and consumers".
A reverse mortgage is a special type of home loan that
enables older homeowners to stay in their home and maintain a comfortable lifestyle. The
loan provides funds to the owner – as a one-time lump-sum payment, fixed monthly
payments for life, or line of credit – that are based in amount on the owner's equity
in his or her house and the owner's anticipated life expectancy. The loan need not be
repaid so long as the homeowner maintains the home as his or her primary residence.
The common reverse mortgage – which is different from
the traditional home equity loan – is only 10 years old. There are two primary types
of reverse mortgages that dominate the fledgling industry today. These include a reverse
mortgage insured by the Federal Housing Administration (FHA), a part of the U.S.
Department of Housing and Urban Development (HUD), and the "Home Keeper" reverse
mortgage offered by Fannie Mae. In addition to these products, a few private companies --
have created their own proprietary reverse mortgage products.
Fannie Mae, the nation's largest purchaser of home loans,
purchases Home Keeper mortgages originated by participating private lenders.
About 25,000 FHA reverse mortgages have been originated to
date since the program was authorized in 1987. Approximately 1,000 Home Keeper mortgages
have been originated since the start of the program in 1996. However, the potential market
for reverse mortgages is enormous and largely untapped. The U.S. Census Bureau has
projected that the share of all Americans that is 65 years or older will grow from the
current level of 13 percent to 20 percent in 30 years.
Established at a recent organizational meeting in Washington,
DC of financial service companies, including lenders and insurance company subsidiaries,
NRMLA's membership is open to companies that originate, service, or invest in reverse
mortgages, and affiliated professionals involved in or interested in the product.
NRMLA will act as an advocacy organization, promote awareness
of the reverse mortgage, and hold periodic national conferences on reverse mortgage
lending topics. The organization plans to hold its first conference on May 27-30 in
Chicago and a second conference in October in California.
Taylor, chairman of the board of directors of NRMLA, is vice
chairman of Wendover Financial Services Corp., Greensboro, NC.
Day-to-day administration of the Association will be managed
by Peter H. Bell, whose position is President of NRMLA.
In addition to Taylor, other newly elected officers of NRMLA
are: Vice Chairman Roger Reynolds, Norwest Mortgage, Inc., Hemet CA; Vice Chairman Patrick
J. McEnerney, BNY Mortgage Company, Inc. (A Bank of New York Company), Harrison NY;
Secretary Jeffrey M. Birdsell, ULLICO, Inc., Washington, DC; and Treasurer Harris A.
Turkel, GMAC Mortgage Corporation, Horsham, PA.
Other members of the Board of Directors are: Steve Baer,
American Senior Income Chicago, IL; George O. Conover, International Mortgage Corporation,
Owing Mills, MD; Lloyd Daniel, Senior Loan Center, Inc., Carmichael, CA; Mercy Jimenez,
Fannie Mae, Washington, DC; Ken Keranen, Seattle Mortgage Company, Seattle, WA; Nelson
Locke, America's Senior Financial Services, Inc., Miami Lakes, FL; Jim Mahoney, Financial
freedom Senior Funding Corp., Irvine, CA; Dennis Markus, Transamerica HomeFirst, Inc., San
Francisco, CA; Joseph A. Morris, Unity Mortgage Group, Atlanta, GA; Michael Noel,
Republic Bank, St. Petersburg, FL; Anthony M. Oh, Hartford Life Insurance Company,
Simsbury, CT; and Terry Turk, Sun American Mortgage Company, Mesa, AZ.
Firms interested in further information about NRMLA
membership and conferences may contact the Association at 202-939-1760.
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