You’ve no doubt been inundated with communication about the changes occurring within the reverse mortgage industry. Making its appearance just this week is the HECM Saver in addition to the new principal limit factors which are now in place. We can speculate and look at various predictions about how this will affect the reverse mortgage business overall, but what does it mean to you, the individual originator?
It means opportunity. As the reverse mortgage program continues to evolve and mature, we need to look at each piece of the puzzle and create our own opportunity. Does the introduction of the HECM Saver mean that prospects who were previously not interested will take another look? Will this be viewed as a positive step toward reducing closing costs on the HECM, even though the amount available to the borrower can be less?
It will if you present in that fashion. And if you yourself believe it’s a positive step. More choice for the senior borrower means more prospects will take a second look. It’s inevitable. You’ve just offered yet another way for the borrower to take advantage of this unique program.
As always, you’ve got to know your numbers. Review your database of prospects as well as your recent clients. Has the average age of the borrower changed for you at all? How are they using the proceeds from the reverse? Which product have they selected, fixed or adjustable rate?
Build a true picture of your average client. What common traits do you see when you compare your closed loan clients with your prospect list? Better yet, what differences do you see? Therein lays the opportunity.
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. Sue 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
