Advisor Fine Sheds Light on Roadblock to Recommending HECMs

Recently, a LinkedIn post relayed a story about a financial advisor who was fined by his company’s compliance department for recommending a reverse mortgage. The story was about a financial advisor who has helped clients manage their finances for 28 years for a firm in the Midwest. He directed a client to a local reverse […]

Reverse Mortgage Originators Name Their Favorite Educational Resources

When potential borrowers want to learn more about reverse mortgage products, many professionals look to their in-house resources, like company websites, to begin the education process. For Beth Paterson, executive vice president at Reverse Mortgages SIDAC in St. Paul, Minn., her website’s articles are a primary “education piece.” “Our website is designed as educational, not […]

A Servicer Responds to Originators’ Calls for Change

By Mary Katherine QuasaranoVice President of Learning and Development, Celink  Late last month, RMD published an important call to action for those in the servicing industry, an article titled “Reverse Mortgage Originators Tackle Ways to Improve Servicing” From this servicer’s perspective, many of the stated and determined efforts of originators to deal with — or […]

Five More Tips for Acing Reverse Mortgage Originations Over the Phone

The debate between adherents of the kitchen-table approach and the call-center model will likely never have a clear victor, as both types of loan origination — for either forward or reverse — have their merits. But in a world where homeowners who can qualify for a Home Equity Conversion Mortgage are increasingly tech-savvy, developing a […]

Five Tips for Originating Reverse Mortgages Over the Phone

Reverse mortgages are unique and complex financial products, which is why many who sell these loans focus on kitchen-table originations. Meeting face-to-face is often viewed as the most effective way to connect with senior clients and guide them through the lengthy loan process. But a number of top reverse lenders operate thriving call centers where […]

Three Years In, Underwriters Say LESA Has Improved Reverse Mortgages

It’s been nearly three years since the Department of Housing and Urban Development introduced Life Expectancy Set-Asides (LESAs), which require borrowers with less-than-stellar credit histories to set aside a portion of their reverse mortgage proceeds to pay taxes and insurance. It took time for underwriters to get a handle on LESA guidelines as they sought […]

Reverse Mortgage Competition Intensifies Under New Program Rules

The Department of Housing and Urban Development’s decision to cut principal limit factors for reverse mortgage originators has significantly changed the competitive landscape, multiple industry professionals told RMD. Although not all the competition is over rates, they are one of the biggest factors brokers consider as they balance business costs and value to the customer. […]

Reverse Mortgage Originators Tackle Ways to Improve Servicing

Reverse mortgage lenders and originators have made great strides in improving the product’s image over the last decade. But once the borrower signs the loan documents, his or her fate — and the loan’s reputation — is fully in the hands of the servicer. Although all lenders interviewed for this article expressed satisfaction with the […]

Despite Data, Originators See Little Change in HECM Borrower Age

Recent data indicated that fewer younger borrowers are opting for reverse mortgages, but this age shift has not been noticeable for many originators nationwide. A recent report from Baseline Reverse looked at loans funded in January and pooled in February — which consisted of both Home Equity Conversion Mortgages originated under the new, lower principal […]