Despite several reverse mortgage program changes and the impending financial assessment to take effect in March, Quontic Bank believes the time is now to get into the reverse business.
The federally chartered New York bank told RMD this week of its plans to launch a Home Equity Conversion Mortgage (HECM) division, seeing “tremendous opportunities” in the reverse mortgage lending landscape with the recent program changes.
“The marketplace has changed, direct homeowner lead generation has become very competitive and Quontic believes the future will be with MVP relationships,” Quontic said in a press release.
As the company gets its new division up and running, it’s focusing largely on educating financial professionals about reverse mortgages and the workings of the HECM program.
To address the increasing awareness and interest from other professionals, including financial advisors, planners and Realtors, the bank is also launching Quontic University, an education platform that will offer online, classroom and live events that emphasize HECM case studies by showing real-life examples of how reverse mortgages have changed the lives of homeowners throughout the U.S.
Quontic has been providing continuing education events since 2009 and has recently been receiving more interest in providing more classes on reverse mortgages from tax advisory associations, financial planning organizations and even Bar Associations, says Quontic Bank HECM Division Manager Frank Melia, CMPS.
“Now is the time when advisors need advanced strategies to accommodate the financial needs of our aging population,” Melia tells RMD. “We have seen the attendance at our reverse mortgage continuing education events double since 2012 and advisors tell us they now understand how the program works.”
As part of its educational resources, Q University will post Federal Housing Administration and HECM guidelines, product changes, FHA Mortgagee Letters and webinars on a variety of topics that can allow financial professionals outside of the reverse space the opportunity to learn about how the HECM program works.
“Coming from a purchase mortgage model for two decades, I felt as if we are going to launch a reverse division we would need to work with seasoned veterans, and I feel we have put together a team that has over 20-plus years cumulative experience in reverse mortgage lending, that will change how reverse education is offered to professionals,” said George Lazaridis, president of Quontic Bank’s Mortgage Division.
With the changes to the HECM program and the “New Reverse Mortgage” campaign spearheaded by the National Reverse Mortgage Lenders Association, Quontic believes it can launch a new division that stands apart from most direct response reverse companies.
“We believe that the launch of Q University will allow HECM education nationwide,” said Michael Bocelli, Quontic Bank HECM Division Manager. “We will offer webinars nationally to all professionals regarding the HECM loan program.”
Quontic is licensed to conduct HECM business in all 50 states.
Written by Jason Oliva