mortgages have gained a bad reputation over the years and have developed the misconception of being a last resort for struggling seniors. Despite recent FHA
regulation changes and several good PR campaigns, reverse still has a stigma, according to a recent Mortgage Professional America
The survey was sent to over 40,000 mortgage professionals
, and 72.34% revealed the stigma surrounding the product was the most difficult thing in offering reverse mortgages
. Other answers included: the long sales cycle (12.77%); not knowing enough about the product (10.64%); and changing regulations to keep up with (4.26%).
On the flip side, those who sell reverse reported that the best thing about offering the product was the considerable growth potential with the aging baby boomer population (55.1%). Approximately 30.6% responded that they like helping seniors age in place; 6.1% said it was a stable business not entirely dependent on market conditions; and 4% revealed that offer reverse because the commission is higher and to diversify their product portfolios.
It’s one of the fastest growing mortgage markets in America – are you getting your share?
Mortgage professionals that do not offer reverse revealed they don’t because they do not know enough about the product (37.14%). Meanwhile, 25.71% reported they do not know how to market or sell reverse mortgages; 20% said they have ethical reasons against the product and 8.57% said it was too difficult to learn the regulations surrounding reverse and they didn’t think the product was profitable enough.
The reverse industry offers more opportunity to forward mortgage companies that are looking to diversify their product portfolios. According to the National Reverse
Mortgage Lenders Association, the industry is only penetrating 2% of the current market, which is growing by the thousands daily. The U.S. Census Bureau reported 10,000 seniors turn 62 every day, the qualifying age to receive a reverse mortgage