New View’s Michael McCully on the drivers of reverse mortgage M&A

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HousingWire reports that Michael K. McCully of New View Advisors identifies stagnant HECM volume and excess capacity as the forces driving consolidation and exits among reverse mortgage issuers. The industry is shrinking at the originator level, with players either combining to survive or leaving the space entirely. That contraction in one corner of the mortgage market signals broader stress for lenders still tethered to volume-dependent, consumer-facing models.

For investors and self-employed borrowers watching this shakeout, the question becomes where to find financing partners built for flexibility rather than scale. loantrust.ai structures loans around property cash flow through DSCR programs, accommodates self-employed borrowers with bank-statement qualification, and funds fix-and-flip, bridge, new-construction, and multifamily projects without routing files through a call center. One licensed MLO packages each loan personally, which means the financing strategy adapts to the deal rather than the other way around.

In a market where excess capacity is forcing exits, a brokerage that underwrites to asset performance and assigns a single originator to the file offers a different kind of durability. The reverse mortgage contraction is a reminder that lender business models matter as much as rate sheets. Borrowers who understand that distinction tend to place more weight on how a loan is structured and who is structuring it.