1. Refi biz is historically slow this time of year  2. My fiance is with a mortgage broker (20 year veteran) and they're dismally slow in purchases and refis.  The mortgage UWs are turning down 780 score, low LTV buyers for ridiculous reasons.  And its conventional and FHA.  Rates are low but that doesn't help if no one wants to lend.  They're turning down people who sail through DU.

Our formerly biggest client's business was cut in half when Wells and BofA (and others) pulled out of the Reverse market back in September 2012.  Then they instituted more restrictions in October and again by December.  An article he sent me had this woman touting the new changes as being good for the old folks because it would attract home-owners who didn't 'need' this product but instead saw it as a good investment tool.  It has a high entry cost and low ROI - what we all look for in an investment if we have options.  This woman went on to say how this would result in fewer elderly being displaced.  Sure, they'll be homeless when their last resort is gone and they can't afford anything but a crappy state run facility or to live with their offspring.  When I sold them (I seem attracted to professions that are doomed), though they were lucrative for me, a home equity line was generally a better option IF it was possible but their SS income was often not enough for them to qualify (back to why reverse was a last option). 

Our clients are down across the board, regardless of any specialty (REO, reverse, seconds) and the calls started coming in here months ago from our abstractors asking if they'd done something wrong.  The ones who tried to bridge the gap of their decreased income by raising prices effectively eliminated orders from us all because we're sure not raising our prices right now.  The title companies are down and not looking to increase costs.  Instead, I've trimmed what little fat I could in hopes to gain some work from current clients.  I haven't barked up new trees... the trees I have aren't producing much and are being beleaguered by new dogs looking for bones (do bones come from trees?).  We were getting solicited like crazy from new abstractors.

Below is a quote from the article by Elizabeth Ecker (google it, it was copied/pasted to me). 

 Consumer preferences and a shift away from the needs-based borrower that was more typical in the past could also signal a move toward more volume in the long term with a “new” borrower still yet to be defined.

“The borrower of the future is going to better-heeled, married, younger, and healthier,” said reverse mortgage originator Laurie MacNaughton of Middleburg Mortgage. “Once someone is old, sick, widowed and has run through other resources, s/he is not going to pass the financial assessment, creating the perennial dynamic of the rich getting "richer" and the poor getting poorer...or displaced.”

How the new borrower becomes better defined could eliminate an important borrower segment, or could shed light on a new, unrealized market.

“We also have consumer behavior wildcard,” Lunde says. “And another longer range question is: How much does the industry's target customer shift? Maybe this gets to be a product that appeals to the financial planning audience. That could easily dwarf any decline questions."

Coming from a lending background I tend to call BS on this spin as did our client.  I'm glad subprime is gone though we live with the ramifications of it so don't think all restrictions are anti-borrower.  We also live in an area with incredibly high RE taxes where seniors have been forced in droves from their lifelong homes.  $2000/mo SS income per couple does not cover $10K-12K/yr in taxes plus prescriptions!  Fewer displaced my @ss.  It's been happening before these restrictions were put into place.

If I didn't have more time on my hands these days, I wouldn't be posting a novella here.