Comments on: Interview With Quicken’s One Reverse Mortgage CEO

By: Common Sense

Common Sense — Mon, 11 May 2009 19:08:45 +0000

Let’s not forget that if a borrower wishes to meet face to face, their wish must be met. If a lender/orginator cannot meet the client’s wish, then they must refer the loan or inform the borrower that they cannot fulfill the request.

Even as the industry “modernizes”, regulations require us to think “old school”.

By: Reversemaniac

Reversemaniac — Mon, 11 May 2009 01:06:35 +0000

Critic you hit the nail on the head!

By: Reversemaniac

Reversemaniac — Sat, 09 May 2009 09:40:32 +0000

It will definitely all move to the phones/internet…but people we are not there yet…3-6 years at least…baby boomers need to be retiring in bulk, and these days not as many people are retiring at 62….retirees do not recieve maximum Social secuity benefits until 66….so many hold off and keep working until 65-66 in the US. That means we have 3 more years until the first baby boomers reach that age….and with the need for more than 1 years worth to truly make the movement to online a huge one, I truly think those who are mid to late fifties up to sixty right now are going to be the first group to use the internet in mass with this product, so I think we will see a progressive movement for the next three years with some real traction starting in 2014/2015 when we have 20-30 Million Boomers qualifying for this program and 8-10 Million of them Boomers who are currently 60 and under 2-3 years over the inital qualifying age and close to or past the age of 65…..Until then face to face is the only way a normal company can make these loans make sense ( I say normal because I believe that One Reverses Technology and huge database of forward clients is what makes them unique and able to make this product pencil out). I have tried it both ways and the cost to originate ovet he phone is prohibitive and does not pencil out very well (for a normal smaller co.), at least it did not for our company…and we are currently one of the fastest growing reverse mortgage companies in the country as well.

By: Tanda Rimalshaki

Tanda Rimalshaki — Fri, 08 May 2009 17:14:43 +0000

Obviously another stellar interview segment. Old school brick and mortar guys are going to go by the wayside. Quicken Loans obviously has a proven method that seems to work, or One Reverse Mortgage would not be one of the top 5 reverse mortgage lenders in the United States. As more internet savvy people get online, the more and more brick and mortar guys are going to go by the way side. It is a proven theory. People really don’t want to see anyone, no matter how much you think it is important. They will be more and more inclined to sit at home, do things via the computer and also on the phone.

If people don’t change and move with the times, they will go the way of the dinosaur and Pontiac. Quicken Loans has obviously brought the future of the Reverse Mortgage industry into play with their cookie cutter call center design. They will become the Walmart of the Reverse world eventually, running little mom and pop shops out of business, simply because their method is better.

Concerned is aptly named, he should be concerned. Unless others get off of this tired, I need to meet you in your home and shake your hand method, they will be looking for another line of work. I think concerned is more concerned about the fact that he can’t slip an annuity into the conversation when trying to sell a reverse mortgage and that gets him ticked off.

Just because we all work with old people does not mean we need to use the old ways to get the job done.

By: James E. Veale, CPA, MBT

James E. Veale, CPA, MBT — Fri, 08 May 2009 16:13:56 +0000

Ms. Horvat,

While pleased that your company salespeople recommend seniors to seek the advice of financial advisors, it is what your company then provides that causes concerns.

Too many people believe they understand financial issues but like the example you provide, they do not. If the income is merely matching the interest that accrues on the reverse mortgage, the seniors are still losing economically if the additional income results in current income tax liability.

By providing incorrect and incomplete examples, the company is providing financial advice and is reducing the impact of its advice to see financial advisors.

It would be better if the sales people emphasized at least two or three places in the discussion that ALL borrowers should seek the advice of financial advisors. No matter how much a borrower takes out of the loan, there are many issues to be discussed with a financial advisor including estate planning (not just estate tax planning), income tax planning for both the borrowers and heirs, risk, investments, and other issues.

By: Mortgage News You Should Read - 2009-05-07 : RMI Atlantic

Mortgage News You Should Read - 2009-05-07 : RMI Atlantic — Fri, 08 May 2009 04:04:22 +0000

[...] Interview With Quicken’s One Reverse Mortgage CEO (ReverseMortgageDaily.com) [...]

By: Concerned

Concerned — Fri, 08 May 2009 01:16:59 +0000

Mrs. Horvat you are indeed a part of ORM. Please learn more about your business. You have been no doubt taught how to sell, but kept in the dark about the product and the real picture beyond the walls of your SE Michigan location. The interest rate is fixed between the time of application and the time of closing. The rate can go down but not up. The only thing that can change is the MARGIN. If you and your colleagues there at ORM cannot understand the product and the changes to it, please do not contact my grandparents. This like my name makes me concerned. The reverse mortgage product is already a product that has been under much skepticism and if you are out there misquoting or misdirecting my grandparents with your scare tactics then you will undoubtedly tarnish this program and the reputation that reputable reverse mortgage companies are trying to build. Why would seniors be at risk with meeting with a representative from a local bank offering a reverse mortgage? ORM is a brokerage firm NOT a bank, NOT a servicer. A bank, A servicer would be some of the most trustworthy representatives to work with, with background screenings and drug testing unlike brokerage firms. It’s our money, we do not fund the loan and sell the loan it’s our loan! Our reputation and our company’s reputation are too much to risk. Your account of still talking about taking the money out instead of leaving it in the LOC is laughable… Even with a Libor based monthly adjustable your LOC growth rate would be between 3% – 4% and with any other program the LOC growth rates would be higher. There is NO bank, credit union, or brokerage that is offering a growth rate of 3% or 4%. You do not have to sit across from these clients, look them in the face, therefore you have no cares to mislead or misdirect them. I believe that the internet is a growing industry I will agree with that, but your business practices will give this business a bad name.

By: Brian McFedries

Brian McFedries — Fri, 08 May 2009 00:14:51 +0000

Clients will utilmately do what they are most comfortable. Good service is good service regardless of the manner in which they are contacted. Ultimately this business will be judged by the integrity of the people who represent the product.