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Reverse industry needs more originators -- experts

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Mortgage Professional America | 30 Jul 2014, 08:32 AM Agree 0
The reverse industry has a huge client base to draw on -- but its market penetration will remain limited unless more originators enter the space
  • | | 30 Jul 2014, 09:38 AM Agree 0
    Well, if someone in the Industry started paying the Originators a salary instead of treating them like Entry Level Schlubbs ther might be more boots on the ground, like mine.
  • | | 30 Jul 2014, 09:46 AM Agree 0
  • | | 30 Jul 2014, 09:50 AM Agree 0
    2nd thought, I will expand on your post. Most lenders want production numbers but fail to truly understand the strengths of each LO. They normally do not empower the LO to become a viable part of their business, which requires a strategy from management. They will give you a Laptop and maybe a desk and say, Good Luck out there. That is why we are called "LONE" Officers.
  • Jim Whitehead | | 30 Jul 2014, 09:58 AM Agree 0
    If the senior is concerned about the (home) equity they'll leave behind for their children, the children might have an important role in helping their parent(s) make the decision to do a Reverse mortgage or not.
    In a case where the children already assist their parents with other routine decisions, you might as well get them involved sooner rather than later, because the deal won't happen without their blessing.
  • ScottsdaleAZ | | 30 Jul 2014, 10:03 AM Agree 0
    This is a good product for low producing LOs that are semi-retired that can babysit these consumers, the sales cycle is just way too long anf for many of them to back out at the last minute because of fear or because of the kids getting involve not wanting the equity taken out of the estate to ensure they get payment once mom and dad die, sad but true. We millennials move at lightning speed and there is a disconnect between us and these reverse consumers. Additionally this would be a good set-up for Quicken or Loan Depot that can pay some bone head pennies to hand hold these clients.
  • Peggy in California | | 30 Jul 2014, 10:36 AM Agree 0
    Then maybe you should be looking at other companies to join. I moved from a forward market back to a reverse market and I can't say how much better it is. I left the market during the mortgage crash but now know that it is the best time to be in the reverse market. The seniors need this product but there is a hurdle of past issues with the product and mortgage officers that try to take advantage of the system. With all the new changes and more coming on Aug 4th I feel that I am in the right place at the right time and I am getting paid very well for what I do.
  • R in GA | | 30 Jul 2014, 11:34 AM Agree 0
    re: the belly ache-r moaning about someone to pay a salary's the industry. and it doesn't sound like a fit for you.
  • Your Friend in the RM Industry | | 30 Jul 2014, 12:00 PM Agree 0
    If you want the support and leadership of a lender with the vision to see where the reverse mortgage industry needs to grow and the ability to take action to get there.


  • Train the trainer | | 30 Jul 2014, 01:12 PM Agree 0
    You are spot on not enough training for the entry level the aged lo's do it there way which doesn't work and with the ever changing regs and laws associates need trained. I'm pretty sure that Joe Gibbs Racing wouldn't put me behind the wheel of one of his cars and say go win the Daytona 500. Bad management from my perspective and I never did that to my people after 32 years in management . Training first, One foot in front of the other and walk before you run. Very frustrating to take the football with no blockers and score a TD
  • train the trainer | | 30 Jul 2014, 01:13 PM Agree 0
  • William Matz | | 30 Jul 2014, 01:39 PM Agree 0
    One potentially dangerous trend is that of reverse mortgage "specialists". When LO's only offer RM's, there is an unconscious bias to see the RM as the solution. ["When the only tool you have is a hammer, every problem looks like a nail."] Seniors need mortgage advisers who understand and can implement the full range of solutions. Moreover, they must be able to talk intelligently to the other key advisers, such estate planning atty, CFP, CPA, etc. RM's can b e an appropriate solution, but the high cost and occupancy requirement require careful comparison to other alternatives to ensure that the R M is in the best interest of the owner, not just the LO.
  • Carlos4Reverse | | 30 Jul 2014, 02:07 PM Agree 0
    Hi Ryan, Thanks for writing your article and for adding that we need more experts not just mortgage officers to expand the industry numbers. The Reverse Mortgage products can be an integral part of someone's retirement planning but the programs are much more complex than traditional mortgages and the Sales Cycle is probably going to get longer if States like California propose more legislation on the product with extended waiting periods before a borrower is even eligible to apply for the mortgage.

    It is nice to see all of the positive press and articles supporting the use of RM's versus conditions over the past 10 years. With the new PR Campaign in Pilot stages and the Journal of Financial Planning articles more and more people will have positive things to say about the RM programs.

    And with 10,000 Baby Boomers turning 62 each and every day for the next 12 years, the Reverse Mortgage numbers should have an upward trajectory every year as Boomers reach retirement age and look to RM's as a way of supplementing their Retirement years. And if you look at their life expectancy the numbers are likely to increase for 30-35 more years. The big question is how steep will the increase be from year to year over the next few decades.

    Unfortunately with the barrier to entry so low and with the expectations of the Boomers possibly needing to use the RM product more than those that came before them, it is logical to expect to see more mortgage officers and companies offering the product. And there will always be those that look for the easy or quick money but those people and companies probably will not be a good fit for this type of financing and the Seniors that they will need to assist.

    Whether someone originates for a small company or works for a large bank (they are sure to return once HUD addresses T&I defaults, Impound Accounts & Financial Assessment for this coming Fiscal year), it is really up to the individual mortgage officer to educate themselves about the RM programs and how they can be used.
  • HomeSure Lending | | 30 Jul 2014, 05:42 PM Agree 0
    Quicken owns One Reverse Mortgage, FYI. So you are right.
  • Rick V - Core Lending Houston | | 04 Aug 2014, 11:29 AM Agree 0
    I have had many frustrating experiences trying to motivate seniors who need a HECM solution to take action. The ones that I have closed took months. I continue to promote reverse mortgages as a great solution for selected seniors. Seniors are bombarded with solicitations for these mortgages and (most) simply do not believe that they won't lose their homes. I am a senior as well and relate effectively to this group. I would like to get more involved but find that my time is better spent pursuing forwards. We now have the ability to purchase homes with these mortgages here in Texas. My hope is that this added capability will motivate more seniors to seek my counsel.
  • Sal @ C2F but does it really matter | | 08 Aug 2014, 12:07 AM Agree 0

    “Whether you think you can, or you think you can't--you're right.” ― Henry Ford

    my $0.02

    Myth's about reverse mortgages

    - the clients that a long time to decide = at our latest company lunch & learn, the closed file ratio to attendance was 15%

    - the market is saturated with originators = some reverse companies are throwing a huge net out there trying to catch some crumbs,
    these companies are the CashCall of the reverse mortgages and only care about numbers and won't last long in the business. there are
    10k people reaching the reverse mortgage age very single day for the next decade, you do the math.

    Reason to do reverse mortgages

    - the average commission is 3 to 5 times the amount of a regular mortgage
    - the referrals are far easier to come by and are plenty
    - lack of competition

    The challenges of reverse mortgage as a mortgage officer
    - having to learn a new mortgage concept (sales. marketing, processing, product)
    - dealing with people that don't take action quickly, but this almost work in your favor once you have built a solid pipeline
    - lack of technology used by the client (email, fax, text, internet, digital signatures, etc.)
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