In response to the recent credit drought in world debt capital markets, Macquarie Bank has announced it’s withdrawl from all mortgage origination, including reverse mortgages.
Although some new business will continue to be written, it will be at vastly reduced volumes. You can read more about it here
What does this mean for seniors and the reverse mortgage industry?
One less funder means reduced choice for consumers, which is a not ideal. However, there are still many lenders operating in the market who are providing excellent product offerings to senior borrowers. My guess is that there will be a further ‘flight to quality’ amongst consumers. They will naturally seek out the more established lenders, and use specialist reverse mortgage brokers to help them make the right choice.