I've seen conflicting articles in the last few days referring to the predictions of reverse mortgage volume for 2010. Some say volume will be down, others say the opposite. I of course prefer to look at the "glass half full" position. Let me outline a couple of reasons why I think the reverse mortgage business will do just fine in 2010.
First and foremost, the demographics are in our favor. The senior population continues to grow and as the Baby Boomers move closer to retirement (some have already retired and are starting second careers out of necessity) the demand for the reverse mortgage will continue.
In addition, this generation will be much more open to using home equity as a financial tool. Instead of going back to work to meet expenses, the reverse mortgage can be considered as the solution. Research the demographics in your market area and see the potential.
Second, the senior borrower is looking at the reverse mortgage in a new light. We have made some inroads on the education front for our product, and the more seniors and their families learn, the more they embrace it.
No longer is it a "secret" when a senior takes out a reverse. They share the good news with friends, family, and neighbors. The current interest rate environment and the idea of establishing the line of credit now for future needs combine to create an excellent opportunity for the savvy senior who wants a plan in place.
Financial planners have embraced this strategy for quite some time. Make sure your financial planning partners know the strength of this strategy.
I know we are still dealing with seniors who cannot get enough reverse mortgage proceeds to payoff current liens and that property values in some areas continue to be an issue, but those items aside, we have a tremendous opportunity. There are a significant number of homes with no mortgage whatsoever. Stick to your plan, avoid the naysayers and look forward to a great 2010 - in reverse!
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, and SRES - Senior Real Estate Specialists, 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
