S1L Signs Partnership to Educate Financial Trade Groups on Reverse Mortgages

Security One Lending has reached an exclusive agreement with the American Continuing Education (C.E.) Institute, LLC, enabling the company to extend its reach to industry professionals who frequently come into contact with reverse mortgage-eligible seniors. The Institute was endorsed by the National LTC (long-term care) Network last week.

The agreement allows C.E. Institute founder Michael Banner to continue to run the Institute, which will license the use and distribution rights to its continuing education curriculum.

“Education is certainly the best way for our industry to update this perception, and help financial professionals better understand how a reverse mortgage fits as a viable component of an overall retirement plan or strategy,” said Torrey Larsen, President of Security One Lending, in a company statement.


Banner, formerly the founding partner of LoanWell America, has joined with Security One and will operate one of two “incubator” locations in which Security One will test its systems and marketing plans before expanding the opportunity to its retail originators.

The National LTC Network’s endorsement of the American C.E. Institute could spread reverse mortgage education and awareness to thousands of long-term care (LTC) insurance agents.

The network is the single-largest source of LTC insurance sales in America, and through the endorsement it will promote an educational class offered by the American C.E. Institute, with the potential of educating thousands of LTC insurance agents and thereby having a substantial impact on the reverse mortgage world.

“With this endorsement, they’re saying that the tens of thousands of insurance salesmen specializing in long-term care need to be educated on the legal, ethical, and moral uses of a reverse mortgage,” says Banner.

The LTC industry has a lot in common with the reverse mortgage industry, as both target a similar age demographic and a rapidly expanding senior market that’s increasingly struggling in its ability to pay for healthcare, he says.

“Seniors are looking for more realistic ways to afford long-term care,” says Banner. “For many seniors, eliminating their monthly mortgage payment thus increasing their monthly disposable income could be the best way for them to afford their long term care.”

The plan is that long-term care agents who have taken the class will be able to provide interested seniors with accurate information.

“With today’s high-quality and federally-regulated reverse mortgages market, we believe this could be a valuable option for our clients to consider,” said Terry Truesdell, President and CEO of The National LTC Network, in a statement.

Banner’s class, Reverse Mortgages: Myth vs. Reality is in the process of being approved in 40+ states to count toward Continuing Education credits for maintaining insurance licenses and is already approved in 50 states for certified financial planners. Around 2,000 advisors have taken the class in Florida, which counts for two hours of their C.E. credits.

The American C.E. Institute is based in Florida, where it offers face-to-face education, and the class will also have online availability to both LTC insurance agents and certified financial planners.

Written by Alyssa Gerace

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  • Michael, welcome aboard. You and I have been discussing this move for a long time. I am glad to see it come to fruition.

    Your addition is a great enhancement to our reaching out to the financial community and being with us should be a way for you to maximize your opportunities.

    We look forward to a long-term relationship with you.

  • This
    is an exciting time for our industry. With S1L and Banner’s nationwide
    education efforts our fellow industries (i.e. LTC, CFP, Lawyers, Real Estate, Insurance,
    etc) will be able to talk-the-talk and actually support and even endorse the RM
    world. I am ecstatic!!!

  • Congratulations Michael,  ! question,  Will the financial planners be able to answer the following question ? Under the Reverse Mortgage program can the lender reduce the monthly payments to the borrower without the permission of the borrower ?  And  what is the answer ?

    • mrfranklo,

      It sounds like you are not familiar with the payout options or the differences between products.  With a fixed rate HECM all available proceeds must be taken at initial funding; there are no other payouts to borrowers.

      As to adjustable rate HECMs, there is a line of credit.  Borrowers have the right to choose how they want to take available proceeds BUT they can also take them all at initial funding or not take any at all.

      There is an option which very, very few borrowers utilize and that is the tenure payout option.  If you are asking if that can be changed without warning, the answer is it all depends.  If there is a default or some other problem which permits the lender to take available funds and the available proceeds in the unallocated line of credit is insufficient, monies can be taken from any amount allocated to tenure payouts, thus resulting in a reduction of that payout.

      HECM tenure payouts are not annuity payouts.  Unlike annuity payouts, HECM tenure payouts are not portable.  They can be suspended during bankruptcy.  They can be reduced if borrowers do not abide by certain covenants.  HOWEVER, tenure payouts are rare.

      With an adjustable rate, borrowers could have four different payout options in the loan.  They could take a lump sum at funding, have monthly payments for a specific term, take tenure payouts, and have amounts availalbe in the line of credit to take at will without impacting the other three.  It all depends on what a borrower wants and how much is available through their line of credit.

      Borrowers also have the right to change their payout choice with an adjustable HECM at will.  There is generally a $20 fee to make any change after the first change.

      Proprietary reverse mortgages are much different and normally do not offer tenure payouts.  Since each provider has different options, information on those products must be obtained from the respective provider.

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