Reverse Mortgage Solutions believes mortgage brokers may be the big winners from Bank of America and Wells Fargo exiting the reverse mortgage lending arena.
RMS, which recently entered the correspondent originator space that B of A and Wells vacated, notes that brokers already have a large presence in the sector.
Mortgage brokers are entrepreneurial, strong marketers and provide the best service to their clients, said senior vice president Michael Kent. Kent, company CEO Bob Yeary, and VP of correspondent Ralph Rosynek, have all worked in the brokerage sector at one time or another.
Kent added that the correspondent channels of B of A and Wells priced correspondent loans in ways he couldn't understand, which made it a challenge to compete with them.
The two megabanks exited the sector, citing technical defaults on reverses where seniors failed to pay their real estate taxes and/or property insurance.
Kent said critics of the product forget that many seniors are already having financial difficulties when they apply for a loan. After an applicant is granted a mortgage they often continue with the same behavior, he said, but noted that the loan allows for the senior to extend their stay in the home.
