Lessons learned from a Washington Post story



What may have led to the negative comments in WaPo

A recent column in the Washington Post frustrated many reverse mortgage professionals. It recounts the experiences of one couple and an individual who carefully considered taking out a reverse mortgage.

Additional Reading:

Washington Post: Reverse mortgages: Readers share their experiences

4 comments

The Cynic June 14, 2021 at 9:54 am

What are we trying to hide? It is clear that that the person with the high FICO score was not given the proper information about what a reverse mortgage is; otherwise why bring up the FICO score?

Those who declare that reverse mortgages are just mortgages like any other mortgage show they do not understand reverse mortgages. A reverse mortgage is just like any other NONRECOURSE residential home mortgage; however, not all nonrecourse mortgages are reverse mortgages.

A true nonrecourse mortgage is a collateral based mortgage not a mortgage based principally on the ability and willingness to repay the MORTGAGE [including payment of interest, principal, servicing fees and MIP (or PMI)] AND relevant property charges. Reverse mortgages under federal law at 15 USC 1602(cc) are true nonrecourse mortgages.

In my high school algebra was a required course. Many students rightly complained that a lot of what they were learning had NO relevance to what they would do after high school. But the educators at our school did not provide a separate course for those who would only need some of the course but not all.

For years and years NRMLA has overly stressed we should be EDUCATORS not salespeople. The best salespeople I know TARGET their marketing to those who will use their products and try to discourage as early in their presentation as possible those who will not. True educators are less prone to understand such attitudes when it comes to teaching their subject matter. What about reverse mortgage evangelists who believe that even the older homeless (a convenient exaggeration) need to know about reverse mortgages.

So are we educators or rational salespeople?

Reply
David Edel June 14, 2021 at 1:51 pm

Hi Shannon…I liked the format! Thank you for all you do for us.

Reply
Shannon Hicks June 14, 2021 at 2:45 pm

Thank you, David. I appreciate that. I may use this format or a hybrid of this style in the studio.

Reply
Peter Loreque June 15, 2021 at 7:20 am

I like lisening to your views on Reverse Mortgages and other interjections.

Reply

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