Beyond generational lending: Bank and lender partnerships
On it’s face the reluctance of mortgage lenders to offer reverse mortgages could be seen as a setback. Recent survey results from the Stratmor Group’s sampling of 120 traditional mortgage lenders reveal only 35% currently offer the HECM. The number one reason given by those not offering the loan was reputation risk followed by distractions from their core business, a lack of internal HECM expertise, and profitability concerns. In light of these findings, HECM professionals could find an opportunity to provide an external solution that meets the needs of the homeowner and assuages the concerns of traditional lenders.
Much attention has been given to the concept of generational lending which provides a variety of situation-specific mortgage products throughout the life of their customer, their children or parents. While this holistic approach to mortgage lending is admirable as it is practical, few lenders offer both traditional and reverse mortgages.
With falling FHA case numbers showing fewer qualified borrowers, and several years of stagnant endorsement volumes, lenders and originators alike are seeking out new ways to attract qualified homeowners. Mindful of this much of the recent conversation has centered on expanding referral partnerships with financial professionals or realtors to leverage the HECM for Purchase. However another opportunity has been largely overlooked, and that opportunity is hiding in plain sight across small towns and large cities…
Download the video transcript here.
3 Comments
Shannon,
You could not be more accurate in your suggestion about calling on the community bank and non-bank lenders. Credit unions are also a good target partner to get hooked up with.
Calling on the community bank and credit unions take a different approach, we also need to keep in mind their mindset!
A community bank is motivated so differently, we need to understand what motivates them and how we can become a true partner with them!
Shannon, this was a good presentation you made this morning, I will call you to talk further to you about it, make it a great day.
John A. Smaldone
http://www.hanover-financial.com
Shannon,
I couldn’t agree with you more. LOs in local banks and mortgage companies have been some of my most ardent referral partners. The fact that I had more then 10 years in their world makes me more of an associate, and we can discuss problems and issues that affect them. By also discussing weird or bad loan situations in the past, we become closer as “comrades in arms”, and many of us also get together in the Chamber and in networking groups. . I thoroughly enjoy my LOs and really appreciate their business.
Warm regards,
George Johnson
George,
Actual experience with creating these relationships is interesting. We have those who tell us what to do but few who have done so as an overall successful strategy. Good for you. Your comment could not be more on point.
You had experience in the field that allowed you to bond right away. What bonding advice can you provide us?