For many of us, our mortgage pipelines are in dire need of some good solid loan business. If you fall in this category, it may be time to evaluate the business opportunities that await you in the Reverse Mortgage marketplace.
If you’ve been paying attention by any means, you most likely know that the projected potential of the Reverse Mortgage market is absolutely staggering. As you most likely know…The Department of Housing and Urban Development (HUD) refers to a Reverse Mortgage as a HECM, which stands for Home Equity Conversion Mortgage.
When you do your review and evaluation of this growing niche, make sure to consider these thirteen (13) facts and how they can impact your mortgage future:
1. It is estimated that between 9,500 to 12,000 people a day turn 62 years of age and when they are home owners, eligible for a Reverse Mortgage.
2. Seniors which are 62 years of age and older (our definition of a senior for this discussion), control more than three quarters of our nation’s wealth.
3. They’re living longer and continue to be more active than any generation before them. They, like many of us…continue to have goals, aspirations, desires and even problems…which they’d love to solve.
4. They have equity in their homes however do not have a clue how to convert their equity (non-liquid asset) into spendable and useable cash (a liquid asset).
5. Originations of Reverse Mortgages have increased 109% for the previous few years. Actually, each year for the previous five years, the number of loans has doubled each year.
6. FHA endorsed 10,026 reverse mortgages in June alone, bringing the year-to-date total to 83,871. By comparison, FHA insured 8,925 loans in June 2007 totaling 80,425.
7. It is estimated that there are right now 75 million prospects which would benefit from this type of program and that number continues to grow every day.
8. Less than one quarter of all Mortgage Companies presently offer the Reverse Mortgage product. Now is the time to market Reverse Mortgages while competition is minimal.
9. Recognizing our current credit crisis and the problems we have funding our normal forward based mortgages…credit and credit scoring models aren’t used with the Reverse Mortgage product. The benefits obtained are based on age and equity.
10. The Reverse Mortgage product is a Federal Housing Authority (FHA) insured non-recourse loan and subject to FHA loan limits.
11. Recent surveys of Reverse Mortgage holders show more than a 95% satisfaction rate of the product.
12. There’ve been serious improvements since the very first Reverse Mortgage was written in 1989 and, the number of Lenders has increased.
13. Effective January 1st, 2009, the HECM Purchase Program is currently operational, enabling Seniors to buy a primary resident.
At first glance you might feel that a Reverse Mortgage will be the easiest type of loan you can ever originate. All things considered…there’s no Credit Qualification, no Income Verification, and best of all…your commission is usually based on the value of the home…not the loan amount.
But make sure you keep in mind…a marketing niche is just as good as the dedication, knowledge, expertise, and professionalism you’re willing to bring to bear on the marketplace.
Yes…working with Seniors can and will prove to be very profitable. Plus…You’ll also get personal satisfaction and gratification as a result of your efforts.
If your current organization or situation doesn’t allow you to originate Reverse Mortgages, you need to either be the catalyst to change that…or, look for a home that does allow you to market to Seniors.
You can become really successful by dedicating yourself to Reverse Mortgages and the Senior market. If you prepare yourself and your marketing program perfectly, you can prepare to explode your Mortgage Business.
If you want more information on reverse mortgage disadvantages, don’t read just rehashed articles online to avoid getting ripped off. Go here: Reverse Mortgage Disadvantages
Related Blogs
- Related Blogs on Mortgages
- Single-Purpose Reverse Mortgages | Reverse Mortgage Guide
