Comments on: State Of The Reverse Mortgage Counseling Industry 2008 Report http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/ Reverse Mortgage News and Information Mon, 13 Feb 2012 00:19:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: apartment mystery shopper http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-16439 apartment mystery shopper Thu, 08 Jan 2009 23:29:21 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-16439 Todd makes a good point about the face-to-face counseling; face-to-face counseling is much more likely to be a higher quality interaction, which ensures that the borrowers are sufficiently informed. However, as Jerry says, a drawback to the face-to-face counseling is that many borrowers may not live within 100 miles of a counselor. Phone counseling is obviously the much more efficient and less expensive method, and I think the concern over phone interaction quality will be greatly lessoned by the implementation of the AARP mystery shops. In my experience as someone who has worked for companies that conduct mystery shops and as someone who has been mystery shopped myself, I know that mystery shopping can make a huge impact on improving behaviors if the results are used appropriately. Todd makes a good point about the face-to-face counseling; face-to-face counseling is much more likely to be a higher quality interaction, which ensures that the borrowers are sufficiently informed. However, as Jerry says, a drawback to the face-to-face counseling is that many borrowers may not live within 100 miles of a counselor. Phone counseling is obviously the much more efficient and less expensive method, and I think the concern over phone interaction quality will be greatly lessoned by the implementation of the AARP mystery shops. In my experience as someone who has worked for companies that conduct mystery shops and as someone who has been mystery shopped myself, I know that mystery shopping can make a huge impact on improving behaviors if the results are used appropriately.

]]> By: Jerry http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-14930 Jerry Sat, 20 Dec 2008 23:42:47 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-14930 I originated my first HECM in 1996, so I've seen a lot. What irks me the most is that the North Carolina "Do Good Agency" laments telephone sessions that last 10 to 15 minutes! Hello, North Carolina requires face to face counseling only! This, by the way, makes it very difficult for North Carolina seniors who live more than 100 miles from a counselor. I originated my first HECM in 1996, so I’ve seen a lot. What irks me the most is that the North Carolina “Do Good Agency” laments telephone sessions that last 10 to 15 minutes! Hello, North Carolina requires face to face counseling only! This, by the way, makes it very difficult for North Carolina seniors who live more than 100 miles from a counselor.

]]> By: Ray http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-14715 Ray Thu, 18 Dec 2008 22:17:12 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-14715 I think AARP and HUD should pay for the counseling. They are the insitutions requiring it. 110,000 clients x $125= $13,750,000 Remember AARP took away $1,255 from every lender, which is my future membership funds to AARP. Nice to know AARP does not care about people future and building up retirement funds/investments. I think AARP and HUD should pay for the counseling. They are the insitutions requiring it.

110,000 clients x $125= $13,750,000

Remember AARP took away $1,255 from every lender, which is my future membership funds to AARP.

Nice to know AARP does not care about people future and building up retirement funds/investments.

]]> By: mrreverse http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-14621 mrreverse Thu, 18 Dec 2008 01:58:06 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-14621 To Patty: True many of the experence Loan officers explain all about reverse mortgages. but remember we now have all the forward mortgage people trying to do reverse mortgages. There should be a seperate license for reverse people.Secondly have you read my blog. Where it quotes Study of counsling and quotes phone calls last 10- 15 Minutes.Hud requires and most underwriters want to see at least 40 minutes. to keep every one honest. as far as lenders paying for counsling, with reducing our fees and our over head going up makes it difficult to lay out money for counsling and find out many properties don't apprasail. Question do you get $125.00 for your time? and how about lowering fees for counsling since I know there are counslors who charge 40.00 and some states charge 0. I fidn't know early reverse mortgages required counsling in 1991 If they did it would make Eddy Jo in her 18 year. What about Hds grant money for counsling seniors. seenms like a lot of money! To Patty: True many of the experence Loan officers explain all about reverse mortgages. but remember we now have all the forward mortgage people trying to do reverse mortgages. There should be a seperate license for reverse people.Secondly have you read my blog. Where it quotes Study of counsling and quotes phone calls last 10- 15 Minutes.Hud requires and most underwriters want to see at least 40 minutes. to keep every one honest. as far as lenders paying for counsling, with reducing our fees and our over head going up makes it difficult to lay out money for counsling and find out many properties don’t apprasail. Question do you get $125.00 for your time?
and how about lowering fees for counsling since I know there are counslors who charge 40.00 and some states charge 0. I fidn’t know early reverse mortgages required counsling in 1991 If they did it would make Eddy Jo in her 18 year. What about Hds grant money for counsling seniors. seenms like a lot of money!

]]> By: Eddy Jo http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-14536 Eddy Jo Wed, 17 Dec 2008 13:45:30 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-14536 Having been a reverse mortgage counselor for several years prior becoming a reverse originator I must say that I've seen great experienced counselors as well as those who are "scripted" and can't answer anything not in the script. However, I think it's up to the lender to provide the prospective borrower with good education on reverse mortgage before they go to counseling! If we do our job properly our borrowers will have confidence in us to help them with their decisions - knowing we will not force them into something that is not in their best interest. Originators who do most of their business by mail and phone because it's the quick, easy way for them don't have the best interest of the borrower in mind and this is a disservice to the borrower! For the record I'm a senior starting my 19th year in the reverse mortgage industry. Having been a reverse mortgage counselor for several years prior becoming a reverse originator I must say that I’ve seen great experienced counselors as well as those who are “scripted” and can’t answer anything not in the script.
However, I think it’s up to the lender to provide the prospective borrower with good education on reverse mortgage before they go to counseling! If we do our job properly our borrowers will have confidence in us to help them with their decisions – knowing we will not force them into something that is not in their best interest.
Originators who do most of their business by mail and phone because it’s the quick, easy way for them don’t have the best interest of the borrower in mind and this is a disservice to the borrower!
For the record I’m a senior starting my 19th year in the reverse mortgage industry.

]]> By: patty http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-14501 patty Wed, 17 Dec 2008 03:20:40 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-14501 You all make some good points. I am a counselor and I primarily do HECM counseling. The clients I see are in a situation where the reverse mortgage is a lifeline for them. If they have a good broker, they usually know quite a bit and the counseling is just verifying what a broker has already told them. I think most of my clients appreciate a third party helping them understand the process. And like Eric says, once they have decided that a reverse mortgage is for them, they are eager to get on with the process. One of the biggest problems that we see are that many seniors have a hard time coming up with the upfront $125. The new rules make it difficult for them. We accept payment at close, though we know that means we will likely not get paid for a good number of them. It would be much simplier if they created a fund that brokers paid into, to pay for the counseling. That way there would still be a seperation between broker and counselor but the senior would not have to come up with the upfront payment. You all make some good points. I am a counselor and I primarily do HECM counseling. The clients I see are in a situation where the reverse mortgage is a lifeline for them. If they have a good broker, they usually know quite a bit and the counseling is just verifying what a broker has already told them. I think most of my clients appreciate a third party helping them understand the process. And like Eric says, once they have decided that a reverse mortgage is for them, they are eager to get on with the process.

One of the biggest problems that we see are that many seniors have a hard time coming up with the upfront $125. The new rules make it difficult for them. We accept payment at close, though we know that means we will likely not get paid for a good number of them. It would be much simplier if they created a fund that brokers paid into, to pay for the counseling. That way there would still be a seperation between broker and counselor but the senior would not have to come up with the upfront payment.

]]> By: Eric http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-14454 Eric Tue, 16 Dec 2008 17:59:14 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-14454 This is Ridicules! All of the counseling sessions my clients have done told me that they last at least 45 min. Why is it that certain groups feel the need to police our industry like they are all knowing and the protector of the land? The reason for wanting to move along fast for the most part is that once the client has made the decision to move forward they are anxious to get it done so they can stop making there mortgage payments and start spending this money and any other they may be getting out in anyway they choose too! Please quit acting like all Reverse LO's are crooks! These people need these loans are genuinely happy to have them available to help their financial situations. I hear the same things over and over how these loans should be looked at so carefully, of course they do! But once the clients financial situation has been evaluated by all parties and the conclusion is that a Reverse Mortgage is a good fit, let's move on and get it done before something changes and the borrower cannot qualify because a program has just been dropped or better yet their home losses value so they qualify for less. Has anyone seen this happen in today’s market? The counselors are professionals, the loan officers are professionals, and the clients are well informed, lets all move on as quickly as possible so all parties can benefit! This is Ridicules! All of the counseling sessions my clients have done told me that they last at least 45 min. Why is it that certain groups feel the need to police our industry like they are all knowing and the protector of the land? The reason for wanting to move along fast for the most part is that once the client has made the decision to move forward they are anxious to get it done so they can stop making there mortgage payments and start spending this money and any other they may be getting out in anyway they choose too!
Please quit acting like all Reverse LO’s are crooks! These people need these loans are genuinely happy to have them available to help their financial situations. I hear the same things over and over how these loans should be looked at so carefully, of course they do! But once the clients financial situation has been evaluated by all parties and the conclusion is that a Reverse Mortgage is a good fit, let’s move on and get it done before something changes and the borrower cannot qualify because a program has just been dropped or better yet their home losses value so they qualify for less. Has anyone seen this happen in today’s market?
The counselors are professionals, the loan officers are professionals, and the clients are well informed, lets all move on as quickly as possible so all parties can benefit!

]]> By: Todd http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/comment-page-1/#comment-14446 Todd Tue, 16 Dec 2008 17:09:50 +0000 http://reversemortgagedaily.com/2008/12/15/state-of-the-reverse-mortgage-counseling-industry-2008-report/#comment-14446 The trend I am seeing more and more is one where the counselor is required to do the LO's work. When HUD changed the required face to face counseling it also opened the door for an enormous workload on the counselors b/c now we have everyone from everywhere dialing for dollars just like the refi days of the past. If my memory serves me correctly this left borrowers uninformed and uneducated and .... wait, let me just grab today's paper. There are enough dragons with telephones preying on our mom's and dad's today in other markets. If HUD wants to slow down the industry, they need to bring back the face to face requirement with the stipulation it would be the required task of the Mortgage company. I believe this would bring forth more accountability of the mortgage company, a better education of the homeowner and ease the burden on the counselors. You also have to understand these counselors, in most situations, are also having to deal with the pressures from bankruptcy attorneys to get the required bankruptcy counselings completed. It is a thankless job these counselors are doing and to send them uneducated homeowners and pressuring them to get them counseled will only lead to shortcuts at the homeowner's expense and more tragic headlines in tomorrow's paper. The trend I am seeing more and more is one where the counselor is required to do the LO’s work. When HUD changed the required face to face counseling it also opened the door for an enormous workload on the counselors b/c now we have everyone from everywhere dialing for dollars just like the refi days of the past. If my memory serves me correctly this left borrowers uninformed and uneducated and …. wait, let me just grab today’s paper. There are enough dragons with telephones preying on our mom’s and dad’s today in other markets. If HUD wants to slow down the industry, they need to bring back the face to face requirement with the stipulation it would be the required task of the Mortgage company. I believe this would bring forth more accountability of the mortgage company, a better education of the homeowner and ease the burden on the counselors. You also have to understand these counselors, in most situations, are also having to deal with the pressures from bankruptcy attorneys to get the required bankruptcy counselings completed. It is a thankless job these counselors are doing and to send them uneducated homeowners and pressuring them to get them counseled will only lead to shortcuts at the homeowner’s expense and more tragic headlines in tomorrow’s paper.

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