Jennifer Harmon

As the market for reverse mortgages grows, concerns are mounting that more seniors are being misled into signing up for a product that some say may put them at risk for losing their home.

While existing home sales were better than expected by most in the industry—up 7.6% in August—the numbers are still the weakest seen in 10 years, and housing experts do not expect a speedy recovery.

MELVILLE, NY—Formerly approved loan correspondents will not have access to nonpublic Federal Housing Administration systems, as of Jan. 1, 2011, including FHA Connection. All other lenders need to meet the increased net-worth requirement of $1 million. “That sounds quite significant and it is,” said Joe Amoroso, director of national sales for Real Estate Mortgage Network, one of the largest private wholesalers in the country. “What it’s done is separate the men from the boys in the lender category for people who want to be a true correspondent lender.”