Local Spotlight: Reverse Mortgages in Southern California

It’s no secret that the reverse mortgage industry took a hit after the U.S. Department of Housing and Urban Development implemented HECM program changes in October 2017. But with lenders finally adjusting to the new normal, many markets are ready for a comeback. And there’s no market more ready than Southern California, some originators based there say. […]

HECM for Purchase Success Can Rest on a Few Key Connections

It’s a given that Home Equity Conversion Mortgage for Purchase originators rely on partnerships with builders to grow their business. Not only do they accrue business referrals this way, but originators become an important conduit by helping builders educate their clients about the program and potentially sell more homes. With the right person, a single […]

Specialization Could Be Key to HECM for Purchase Success

As the reverse mortgage industry continues to adapt to the lower principal limit factors introduced last year — and the resulting volume declines — diversification has become a key watchword. Offer a wide range of potential solutions for a senior borrower, from reverse mortgages to forward refinances to real estate brokerage services, and you’re likelier […]

Teaching Real Estate Agents to Spread the Word on HECM for Purchase

Until the industry places greater emphasis on Realtor education and connections, Home Equity Conversion Mortgages for Purchase are not going to see much of a boost, reverse mortgage educators said — and part of that strategy could include inspiring real estate professionals to spread the word on behalf of reverse mortgage originators. Michael Banner, an active […]

Advising Reverse Mortgage Borrowers on Aging in Place

For the many seniors who want to age in place, structural upgrades can become essential for living with accessibility and safety. A commonly promoted use for the Home Equity Conversion Mortgage, these upgrades are something retirees should start planning for sooner than later if staying in their current home is the plan, said Pete Mendenhall, […]

Modeling Reverse Mortgage Outcomes Key to Financial Planner Acceptance

Despite some regulatory hurdles, financial planners have long been identified as a key source of future reverse mortgage growth, particularly as the industry attempts to position the products as one potential part of an overall retirement plan. And when working with financial planners and clients, sometimes showing the cold, hard data can be the most […]

Comparing the Shared Equity Products Competing with Reverse Mortgages

Reverse mortgage lenders aren’t the only financial companies trying to capitalize on current demographic trends. In recent years, so-called shared equity products — often offered by Silicon Valley-style startups — have developed a different kind of home equity pitch to consumers both young and old. In general, these firms offer upfront cash in exchange for […]

Product Diversification Sweeps Reverse Mortgage Industry

Reverse mortgage giant American Advisors Group’s recent announcement that it’s officially a “product-agnostic” company was sure to prick up the ears of entrepreneurial-minded reverse mortgage originators around the country, wondering what the change means for them. AAG’s new business model includes a new forward lending division and real estate brokerage. The Orange, Calif.-based firm’s reworked marketing […]

New Homes, Retirement Savings: Originators Share HECM Success Stories

Despite industry concerns about lower endorsement volumes and constrained principal limits, reverse mortgage originators continue to see success stories on the ground level. Kathy Collins, a branch manager at UMAX Mortgage in Carlsbad, Calif., recently assisted a couple who opened a Home Equity Conversion Mortgage to fund their grandson’s education. “I presented them with what […]

Reverse Mortgage Borrower Motives Expand as Education Spreads

As the industry continues to adapt to a new landscape of lower principal limit factors, reverse mortgage experts say it’s key to remember why most borrowers pursue the products in the first place — and how those motives have changed amid greater education and positive news coverage. Traditionally, homeowners take out reverse mortgages to gain […]