What Lies Ahead?

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 What Can We Expect in 2014?

Reverse Mortgage News

With the changes and permutations the HECM program has undergone since 2010 one could argue we have already undergone a makeover of sorts. The Saver program, HECM for Purchase and the introduction and revocation of the standard fixed rate. True. However HUD’s recent revamp of the program stands apart as it’s first and only change that is a hard push back to the program’s original intent…to help senior homeowner’s age in place. The Saver gaves us increased crediability with lower costs and opened doors in the financial community. The HECM for Purchase expanded our legitimacy amongst real estate professionals and builders while the fixed rate maximized proceeds while securing interest rates. With recovering home values and a consolidated product what does 2014 hold in store? Here are just a few  speculations on what we can anticipate.

#1- New marketing. While the traditional reverse mortgage ads of the past increased public awareness of the reverse mortgage product, they have also attracted detractors concerned the typical message attempts to lure seniors with promises of vacations, luxury purchases and a flush retirement lifestyle. That may be a stretch yet it warrants our attention. In 2014 expect to see new and creative campaigns focusing on the HECM’s role in retirement planning versus cash alone. Will this attract a more affluent borrower? Time will tell.

#2- Further lender consolidation. We have already seen some medium sized lenders exit the space since last October. Expect a few remaning key players to step to the sidelines in the coming months. Today’s lending environment presents particular challenges to smaller shops with increased regulatory and compliance costs.

#3- Tenure, the loan de jour. Just as the Standard Fixed rate was the rage expect lenders and loan officers to begin promoting the powerful flexibility and growth potential of deferred tenure payments or a line of credit. Though some have lamented the loss of the standard fixed this new product landscape will convert many back to presenting the HECMs true flexibility and long term value when structured properly.

 

Download video transcript here

For more Reverse Mortgage news, technology & training visit ReverseFocus.com.

Spring Cleaning the Reverse Mortgage Way (part 1)

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Lowering Home Closing Costs

Chucking the Extra Closing Costs
Cleaning. Few of us like to do it, yet we seem more willing to spiff up our houses for others than for ourselves. Housekeeper due to arrive? Quick, toss those dirty clothes in the hamper! In-laws invited for dinner? Polish the silver and run the vacuum!

Selling the house? Pull out all the stops. Take an old toothbrush to the grout! Replace the kitchen linoleum! Paint the exterior!

Lowering Home Closing Costs With Reverse Mortgages

While it certainly makes sense for your reverse mortgage prospects to enjoy a clean, comfortable house while they own it — and take all available measures to make it shine for sale at the right price — too many seniors make the mistake of selling one home, then buying another and applying for a HECM in order to avoid paying a mortgage in their retirement years. They’ve thus paid a completely unnecessary, double set of closing costs!

The smart move, of course, is to obtain the reverse mortgage at the time of the new home purchase. The Housing and Economic Recovery Act of 2008 created this special HECM for purchase loan, which went live on January 1, 2009. Find all the details here.

Educating Reverse Mortgage Prospects

So the ideal “spring cleaning” assistance to offer your prospects and clients this season? Reverse mortgage education:

  • When does downsizing make sense? Is it appropriate for you and your spouse now?
  • Explain why a HECM (reverse mortgage) for purchase means one set of closing costs, not two.
  • Help your client begin the process of qualifying for a HECM for purchase loan, so they can enjoy their retirement free from monthly mortgage payments.

Best of all, this type of spring-cleaning is so much gentler on older backs — not to mention bank accounts. You get the business, they save the additional closing costs. Everybody blooms like a fresh spring garden.

In Part 2, we’ll look at ways to help your clients “age-proof” their homes.

American CE Institute & Security One launch realtor classes

FOR IMMEDIATE RELEASE

Contact:  Torrey Larsen

American CE Institute and Security One Lending Launch First of Series of Realtor based CE classes in Oregon

More than 70 Real Estate Agents attend recent class in Bend, Oregon

Security One Lending and American C.E. Institute have created a joint educational system that provides Real Estate Agents the opportunity to learn about the Reverse Mortgage and its impact on their business. American CE Institute has the only Reverse Mortgage CE Class offered by the National Association of Realtors (NAR) to its 1.2 million members.

Realtor Classes Results

Results from the most recent training have been nothing short of remarkable. The response from those attending the class are summarized by S1L’s Regional Manager, Sharon Falvey “Yesterdays’ class held close to 80 Realtors and was standing room only 24 hours after the close of the event here are my results (please take note that I am still receiving text messages, phone calls and e-mails)

  • 6 traditional HECM leads (4 have stated that they intend to move forward)
  • 1 purchase lead
  • 1 possible recruit
  • 1 Realtor married to an FPA that stated her husband “needs” this information
  • 1 Testimonial from a Realtor that I can use on Active Rain
  • Survey results have been requested from CE director in Oregon
  • Recommendation from the CE director to the other Boards in the Northwest”

See attached link from Reverse Fortunes and American CE Institute from recent classes by clicking here.

Reverse Mortgages

“The Purchase Reverse Mortgage product may very well be the ‘Sleeping Giant’ of the senior real estate market”, stated Michael Banner-Founder of American C.E. Institute. “Record low rates of returns on CD’s, Annuities and Savings (vehicles commonly used by seniors) combined with record losses in their investment portfolios in recent years have created the ‘Perfect Storm’ for so many seniors in this great nation. Realtors having the ability to offer a mortgage product with ‘no monthly principal & interest payment’ may just be the answer to literally millions of those seniors.”

Security One Lending

Security One Lending, a FNMA approved Seller/Servicer, based in San Diego, CA currently lends in 32 states and will expand to 40 states by  2012.  Security One Lending originates both traditional forward mortgages and reverse mortgages through multiple distribution channels, including retail, consumer direct, and wholesale.   S1L is an approved Seller/Servicer with FNMA

For more information on Security One Lending:Contact us here or
Call (866) 480-4715

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