Reverse mortgages have received quite a bit of attention in the last few years, especially as the "forward" mortgage sector has experienced a significant fall-off in originations. And with more contraction expected for the near term--a Mortgage Bankers Association (MBA) forecast in April predicted a 38 percent drop in forward originations in 2012, compared with 2011--the reverse-mortgage sector may appear as a safe harbor in which to wait out the storm. However, before setting sail for what looks like calmer waters, mortgage players will want to consider just how different reverse mortgages are from forward products, particularly when it comes to servicing.
