An NPR segment talked home equity and reverse mortgages as an option for home owners. The segment asks: “So what should be done with the house? Try selling in a depressed market? Or rent it until prices perk up? Or would it make more sense to take out a reverse mortgage and try to stay in the house, using cash from the transaction to hire more help?” Check out the segment. 

For aging in place, does it take a “village”? A Boston Globe article looked into the concept of a “Village”-based senior living community, for those who prefer to stay in their homes rather than move into a designated senior living community. 

Reverse mortgage execs stressed the need to go online with marketing. Speaking on a panel at a recent NRMLA conference in Irvine, American Advisors Group’s CEO said he expects online marketing to one day outdo TV ads for reverse mortgages. He shared stats on the types of borrowers that are looking for information online, and how to connect with them.

First Century Bank rolled out a reverse mortgage “Advisor” program. The program allows regulated financial institutions to generate additional fee income without the overhead needed to run a reverse mortgage operation. Find out more.  

Happy Memorial Day to all readers! We’ll be back Tuesday, May 29. 

Written by Elizabeth Ecker

“Celink, we believe, continues to show good experience levels,” the S&P report states, noting the company’s growing portfolio with additional growth expected later in 2012. 

Among the company’s strengths pointed out by the S&P ranking were Celink’s history of servicing reverse mortgages, its “well-defined policies and procedures,” a change in the company’s tax vendor and single-point-of-contact program for borrowers experiencing a tax and/or insurance default. 

“We consider the company’s monitoring program for telephone staff to be thorough,” S&P writes. “As the company continues to grow, we expect them to further develop the training program and continually strengthen its auditing programs to support the company’s servicing function. We believe Celink will remain a proficient residential reverse mortgage servicer.”

Written by Elizabeth Ecker

While some financial planners do understand the viability of reverse mortgage products and they ways in which they can work for clients, and even with the help of recent positive financial planning press on the products, there is still work to be done on the education front, they say. 

“I was getting a lot of phone calls about reverse mortgages,” said Pat McClain, senior partner and founding principal of Hanson McClain Advisors of his early experience with reverse mortgages. “I initially had a negative attitude toward reverse mortgages. But I realized they weren’t the reverse mortgages of old; they actually help people if used correctly.”

McClain, who became one of the founders of Liberty Reverse, now advises clients on financial planning. While his mind was changed, there are still others who need help understanding how the products can work. 

“In terms of clients’ perceptions, there is still a lot of work to be done,” says Jerry Clements, certified financial planner with Ameriprise. “For most there is a negative connotation when I talk to clients.”

But, Clements says, there are ways reverse mortgage professionals can work with financial planners to bring them up to speed. Some are working with reverse mortgage advisors already, others are not. 

“A lot of us still have preconceived ideas. …hopefully over time with education [the reverse mortgage] could be something they integrate more as a tool to prevent portfolio failure,” he says. 

While real estate professionals focus on location, location, location, McClain says, for financial planners, it’s education that counts. 

“For us in the financial planning community, it’s education, education, education,” he says. “You may assume we understand how it works, but some do not have a clue. It’s a process. It may take years to develop the relationship, but if you do and there’s that trust, you will be top of mind. Our clients are asking about it and the more educated we are the more we can help our mutual clients.”

Looking ahead, McClain says, the reverse mortgage could be incorporated into financial planning calculators. 

“Figure out as an industry how to bake calculators into financial planning software, so it shows up as a line item. It will make a difference in three to five years, whether they recognize it now, or not.”

Editor’s note: RMD was unable to attend the session but listened to a recording of the session, provided by NRMLA. 

Written by Elizabeth Ecker

“While it was disappointing to see negative equity numbers remain so high, it is important to note that negative equity remains only a paper loss for the vast majority of underwater homeowners,” said Zillow Chief Economist Stan Humphries. “As home values slowly increase and these homeowners continue to pay down their principal, they will surface again.

The number of underwater homeowners tallied in the first quarter of 2012 amounts to nearly 16 million, Zillow reports, or roughly one-third of all homeowners in the U.S. Foreclosure is not imminent for the vast majority, but the negative equity figure still poses a risk, Zillow’s economist says. 

“Negative equity remains an issue for the housing market as a whole, and poses a risk to any recovery,” Humphries said. “Not only does negative equity tie many to their homes, by making homeowners unable to move when they may want to, but if economic growth slows and unemployment rises, more homeowners will be unable to make timely mortgage payments, increasing delinquency rates and eventually foreclosures.”

In terms of the amounts owed for most, many are not “deeply” underwater. Nearly 40% of those who are owe between 1% and 20% of what their home is worth. Regionally, Nevada has the highest percentage of negative equity, with 66.9 percent of all homeowners with mortgages underwater. Arizona (52.3 percent), Georgia (46.8 percent), Florida (46.3 percent) and Michigan (41.7 percent) also have highest percentages of homeowners in negative equity, according to the Zillow data. 

Written by Elizabeth Ecker

The session, featuring input from National Reverse Mortgage Lenders Association legal counsel Jim Milano, addresses the topic of ethical product placement. There used to be only one reverse mortgage product choice: adjustable rate. Today, there are fixed, adjustable, standard and Saver with different margins. Regulators are paying attention, too. Originators are now in the position of educating borrowers on the different product types and offering the products that best fit their needs.

Depending on your state, you may have a fiduciary responsibility, in addition to an ethical one.

Reverse Fortunes will also cover:

• What is “steering”
• When a comparison sheet isn’t enough
• Practical measures in protecting your business
• Goals first, product education second
• A decision tree? Plant one in their minds
• Why so many fixed rates?
• The CFPB and what is to come with HECM products
• Product pricing today and tomorrow

Space is limited, so sign up now!

Date: Thursday, May 31, noon to 1:00 PM EST (9:00 AM PST). Mark your calendar!

Sign up

“Originations during the first three months of 2012 exceeded $72.0 billion, up 25.3% over the same time period last year,” says Jay Johnson, executive vice president for Callahan & Associates. “This year-over-year growth is significantly higher than the 13.3% recorded in 2011.”

The loan total includes in increase in first mortgages, as well, which comprise roughly 36% of the originations reported, compared with 30.7% in the first quarter of 2011. 

Consumer loans declined as a percent of loan originations in total, but rose in dollar volume to near $40 billion. 

Many reverse mortgage lenders have partnered with credit unions in the loan origination process and have reported success in those partnerships. 

Written by Elizabeth Ecker

In its weekly polling of American confidence in the economy, Gallup found a confidence index rating of -16—while negative, it is still far above the -54 rating seen in mid-2001. 

“Americans’ economic confidence has been on a long, steady climb out of the doldrums it fell into last summer, and the record-high -16 reached last week is certainly positive on a relative basis,” Gallup wrote in its report. “However, the pace of improvement has slowed in recent months, meaning it could be months before the index is in fact positive.” 

The Gallup Economic Confidence Index is an average of two components of consumers’ psychology: Americans’ ratings of current economic conditions and their perceptions of whether the economy is getting better or getting worse, Gallup writes. 

Written by Elizabeth Ecker

Whether you are seeking a position in operations, originating or underwriting, of if you are interested in becoming a branch, check out the following opportunities that are now open across the U.S. Or for a complete list of jobs, visit Reverse Mortgage Jobs Online.

Click the opportunities below for more information.

Originators/Marketing

• Reverse Mortgage Professional (Carlsbad, Calif.) Aramco Financial
• Reverse Mortgage Underwriter (Melville, N.Y) Senior Home Loans
• Reverse Originator (Nationwide) American Nationwide Mortgage
• Reverse Mortgage Loan Specialist (Roswell, Georgia) First Century Bank
• Reverse Mortgage Consultant (Balitmore, Maryland) Maverick Funding Corp.
• Reverse Mortgage Consultant (Parsippany, New Jersey) Maverick Funding Corp.
• Loan Officer (Nationwide) Nationwide Equities
• Reverse Mortgage Originator (Maryland) Southern Trust Mortgage, a subsidiary of Middleburg Bank
• Reverse Mortgage Originator (Virginia) Southern Trust Mortgage, a subsidiary of Middleburg Bank
• Reverse Mortgage Originator (Orange County, Calif.) Omni-Fund, Inc.
• Reverse Mortgage Originator (New York) Senior Home Loans
• Reverse Mortgage Originator (North Carolina) Southern Trust Mortgage, a subsidiary of Middleburg Bank
• Mortgage Processor (San Diego) One Reverse Mortgage
• Underwriter (San Diego) One Reverse Mortgage
• Client Care Specialist (San Diego) One Reverse Mortgage
• Post Closer (San Diego) One Reverse Mortgage
• Compliance Officer (Tulsa, Okla.) Urban Financial Group
• Wholesale Account Manager (Mid-Atlantic, Va.) Genworth Financial
• Reverse Mortgage Underwriter (Melville, N.Y.) Continental Home Loans
• Reverse Mortgage Loan Officer (Hawaii, New York) Associated Mortgage Bankers
• Underwriter (Mahwah, N.J.) Nationwide Equities
• Retail Sales Manager (Northern N.J.) Nationwide Equities
• Loan Officer (Nationwide) Reverse Mortgage USA
• Reverse Mortgage Sales Executive (Select States) Reverse Mortgage Solutions
• Reverse Mortgage Originator (Plainville) Reverse Mortgage of New England
• Reverse Originator/Branch Manager (Not specified) Open Mortgage
• Wholesale Account Executive (NY, NJ, CT, FL, PA, ME) Nationwide Equities
• Reverse Mortgage Consultant (Northern CA) 1st Reverse Mortgage USA, a Division of Cherry Creek Mortgage Co., Inc.
• Reverse Mortgage Consultant (Texas) 1st Reverse Mortgage USA, a Division of Cherry Creek Mortgage Co., Inc.
• Reverse Mortgage Consultant (Washington State) 1st Reverse Mortgage USA, a Division of Cherry Creek Mortgage Co., Inc.
• Reverse Mortgage Consultant (Colorado) 1st Reverse Mortgage USA, a Division of Cherry Creek Mortgage Co., Inc.
• Reverse Mortgage Branch Manager (Nationwide) 1st Reverse Mortgage USA, a Division of Cherry Creek Mortgage Co., Inc.
• Reverse Mortgage Consultant (Southern CA) 1st Reverse Mortgage USA, a Division of Cherry Creek Mortgage Co., Inc.
• Reverse Mortgage Originators (various) First National Bank

Visit our website for additional opportunities in the reverse mortgage industry.

The best and the brightest read RMD. Want them to join your team? Post your jobs to Reverse Mortgage Jobs Online today!