[ad#Kirchmeyer]
[vimeo id=”33036642″ width=”601″ height=”338″]
Learned helplessness is our greatest enemy. Watch this week’s video for some practical ways to overcome bad circumstances or frustration.
It is the strangest thing to the former reverse giant Wells Fargo’s HECM endorsements drop their Rank from #2 lender to #24 this month. Genworth made
Continue reading[ad#CCCS]
Reverse mortgages offer one solution to many of today’s pressing financial issues, such as dwindling retirement funds, minimal Social Security checks (next year’s increase is just a drop in the proverbial bucket), necessary home repairs/improvements, and much more.
Grateful reverse mortgage qualifiers eagerly express how a reverse mortgage helped them make ends meet. Here’s one woman’s thank-you letter to her reverse mortgage company (Security One Lending):
“I’m writing to let you know how satisfied we are with our reverse mortgage. You know how I hesitated in the beginning. But you never pushed! You and your colleagues were so supportive. You explained over and over again so that I fully understood the process.
“We were in dire financial stress, running low on money at the end of the month, not able to save any, and you showed us a way out. Thank you so much.
“I will say Kathy (Halliday) is an invaluable assist to your company. She was a lifeline when I needed one. Everyone I met or worked with was so considerate and helpful. My! How you must have gotten tired of my phone calls! But, none of you ever left me hanging.
“Yes! We would recommend a reverse mortgage to all our friends, as long as they choose your company to handle it. It has freed up our lives and given us a better quality of life in our retiring years. Thank you for your direction and guidance.”
The Redding Record Searchlight reported how two senior men found reverse mortgage to be the answer for their financial needs. Frank Cheatham, an 80-year-old Redding resident who owns two paid-off duplexes, opted for a reverse mortgage to help his son pay down debt. Since his son would inherit the properties someday, the reverse mortgage made use of a future bequest to solve an immediate need. Cheatham also used some of the reverse mortgage loan for home maintenance.
For 68-year-old Burney resident Rod Armstrong, a reverse mortgage became the means to supplement his Social Security and other retirement income. The retired airline pilot says he and his spouse updated their home’s carpeting, and are planning a few trips as well.
Both Cheatham and Armstrong deposited their reverse mortgage loans into accounts they can draw from as the need arises — a smart move.
[vimeo id=”32590209″ width=”601″ height=”338″]
A Behind The Scenes Look At Curing Tax & Insurance Defaults
Our exclusive interview with Celink’s John LaRose at last month’s NRMLA meeting uncovers some of the steps being taken by reverse mortgage servicers to cure tax and insurance defaults.
That may be just what future reverse mortgage borrowers may need to do to satisfy federal regulators before getting the loan. AARP recently called for more ‘special protections’ to help prevent serious harm (full story here). What is puzzling is the mixed messages that often come from AARP regarding reverse mortgages; first endorsing and then later criticizing.
When it comes to fraud is our industry rife with it? AARP’s senior attorney cited high fees that ‘scammers’ can use to suck away people’s home equity. Really? Are we on the same page? HUD restructured the loan origination calculation for borrowers lowering fees dramatically from 2% of the homes appraised value some time ago not to mention the introduction of the HECM Saver last October. When it comes to fraud do we have any real evidence that shows a disproportionate problem with reverse mortgages versus traditional loans?
Certainly high fees were a black eye for reverse mortgages but that issue has long been settled by both HUD and the market with mandated loan origination reductions, lower costs to consumers due to the secondary market and new low cost products like the Saver. Are high fees the risk to borrowers exposing them to losing their home or is it a lack of education or responsibility of the borrower to meet the obligations of insurance and property taxes? I would venture to say it is the later, and steps have been taken to reduce that risk to both borrower and lenders alike.
Beyond mandatory counseling, duplicate warnings, disclosures and all caps ‘buyer beware’ statements in an application what additional protections really can be practically put in place? No one would disagree that consumers deserve sound product education and protections but in the end will they need to chew through barbed wire to get a reverse mortgage? What segment of borrowers could potentially be hurt the worst from regulations that treat the HECM as a toxic loan of last resort and what message does this send to our new segment of higher net worth borrowers who may be looking at a HECM for the first time?
[vimeo id=”32327877″ width=”601″ height=”338″]
Will our industry disappear due to economic pressure and regulation?
Our commentary examines while we are small segment of mortgage lending are we irreplaceable nonetheless? It’s a look at an industry coming of age.
Watch this week’s video and leave your comments below.
[ad#Kirchmeyer]
[vimeo id=”32326974″ width=”601″ height=”338″]
Stop it! Really? What? The things that distract us from our highest & best use. Sometimes the best solution is the simplest.
Watch Bob Newhart’s comedy sketch “Stop it!” here.
Don’t let “thank you” get stale! Here are 5 ways to show your reverse mortgage clients that you’re grateful for the privilege of serving them
Continue reading[vimeo id=”31931127″ width=”601″ height=”338″]
Mike Kent, senior VP of lending at RMS, sat down with me in Boston at the annual NRMLA meeting and discussed our technology, investor markets and industry outlook.
[ad#Kirchmeyer]
[vimeo id=”31917131″ width=”601″ height=”338″]
This video covers some practical ways you can stand apart from your competition and also increase your sales this holiday season. Gratitude does attract more loans.
