If you're one of those people right now who can't stand to open your 401(k) or IRA statement, I'm quite certain you're not alone. It can be frustrating to see the numbers going the wrong way, can't it? You may even think things couldn't be worse. All that hard earned money slipping away. Stop the pity party right here and now. As a loan originator you have the capability to generate income each and every month. Put yourself in the place of a 78-year-old retiree who is counting on the money in that account just to meet monthly bills. That's right - think you're stressed? You can't even begin to put yourself in that retiree's place. He doesn't have the luxury of "just hanging in there" until the market recovers.
Or does he?
If he's one of the thousands (yes, I said thousands) of seniors who look into a reverse mortgage every month, he may just be able to step back and stop draining those funds that have already taken such a beating. In today's environment the reverse mortgage can be the prefect solution to so many problems. Think about it: tap the equity that has been built up in the home with a reverse mortgage. Set up the available funds as a line of credit that can be accessed as needed. This allows the funds in the investment accounts some time to recover or at least not be drawn down further. The reverse mortgage becomes the safety net that saves the day. Never a monthly payment due, and there isn't any credit or income criteria for this loan. If there is a mortgage on the property, it will need to be paid off with reverse mortgage proceeds, and cash flow is immediately improved. Along with the increased HECM lending limit of $625,500 for the remainder of 2009, the field may be wide open in your area. The number of companies that offer reverse mortgages is still relatively small, and market penetration is still less than 2% by most estimates.
I met recently with a couple about a reverse mortgage. Prior to the appointment they asked if their financial planner could attend as well. I thought it was an excellent idea and told them so. As we all discussed the reverse mortgage and how it might fit into their overall plan, I asked the financial planner what he thought of the concept. He said, "Are you kidding? After what I've done to their money, how can I possibly criticize anything you say?" He gave the reverse mortgage plan I presented his blessing and said he had several more clients in similar situations that could use my help.
Have you considered adding this unique product to your arsenal? You will not find a better time to start serving the senior population. They need us now. We are the solution they are seeking.
Financial planners and investment advisors are hurting. Contact those in your community and offer to educate them on the reverse mortgage and how it can literally save them and their clients. You will be building a relationship that will benefit both of you for years to come.
Sue Haviland is a reverse mortgage consultant in Baltimore and the founder of Reverse Mortgage Success, a leader in the training and education for originators around the country in the rapidly growing reverse mortgage arena. Ms. Haviland has worked in the lending industry since 1981. She has been originating reverse mortgages for the last six years and still originates loans every day. She has helped hundreds of families all over the country in the last several years. Sue also shares her knowledge of this market in presentations before the Women's Council of Realtors, Mortgage Bankers Association, National Association of Professional Mortgage Women, SRES - Senior Real Estate Specialists and Brian Sacks Insider Seminars, as well as the public. Sue is a Certified Senior Advisor and is active in many professional organizations. Sign up for her free seven-part mini-course at
