Some recent developments will more than likely put reverse mortgages in a favorable light once again. The announcement of the extension of the lending limit of $625,500 for Federal Housing Administration Home Equity Conversion Mortgages will allow seniors with higher home values to continue to benefit the reverse mortgage programs is the first.
On a coaching call last week, a participant commented that he would love to have one of his borrowers have a home that appraised close to that limit. OK, his comment was well taken, but nonetheless, it is a positive for us.
The second development is the anticipated announcement that there will be no increase in Social Security benefits in fiscal year 2011. Seniors will no doubt be seeking an additional source to supplement their monthly budgets. Some seniors will undoubtedly be able to cut back on certain items without a significant impact to their lifestyle. Some, but not all.
Many depend on Social Security benefits each and every month and for them this development will present a challenge. This offers a unique opportunity for us at a time when the volume for the past year was significantly down. I am optimistic about the volume we will see in 2011.
The third and much talked about piece is the introduction of the HECM Saver. It is anticipated that many seniors who had previously dismissed the reverse mortgage as “just too expensive at the start” will be willing to revisit this program. The introduction of this program should be viewed as the industry response to the most significant consumer concern. It’s up to us to make our local senior community aware of this.
Think about press releases, and other local media outreach. Get the word out and let your seniors know that you are there as the expert and the answer to the challenges they face.
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
