Jobless Subprime Originators Drifting To Reverse Mortgage Market

Reuters reports:

• "Between 12,000 to 15,000 displaced mortgage lenders may begin to seek employment in the growing market for reverse mortgages, an increasingly popular home equity loan for homeowners who are 62 years old or older, Goldman, Sachs & Co. and Wells Fargo Home Mortgage executives said at a mortgage conference."

This prospect has some bankers concerned that a rapid growth in this market may make it vulnerable to the fraud and increased litigation that has plagued the subprime market. One observer, a vice president at Goldman, Sachs & Co. in New York, asks:

• "As you look at what's going on in the subprime market, are those the types of folks who are really appropriate for pursuing reverse mortgages?"

For more, see Ex-subprime loan officers eye booming senior market.

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