| For most of us, our mortgage pipelines are in dire need | | | | the time to market Reverse Mortgages while |
| of some good solid loan business. If you fall in this | | | | competition is minimal. |
| category, it may be time to evaluate the business | | | | 9. Recognizing our current credit crisis and the |
| opportunities that await you in the Reverse Mortgage | | | | problems we have funding our normal forward based |
| marketplace. | | | | mortgages...credit and credit scoring models are not |
| If you have been paying attention at all, you probably | | | | used with the Reverse Mortgage product. The |
| know that the projected potential of the Reverse | | | | benefits received are based on age and equity. |
| Mortgage market is absolutely staggering. As you | | | | 10. The Reverse Mortgage product is a Federal |
| probably know...The Department of Housing and Urban | | | | Housing Authority (FHA) insured non-recourse loan and |
| Development (HUD) refers to a Reverse Mortgage as | | | | subject to FHA loan limits. |
| a HECM, which stands for Home Equity Conversion | | | | 11. Recent surveys of Reverse Mortgage holders |
| Mortgage. | | | | indicate more than a 95% satisfaction rate of the |
| When you do your review and evaluation of this | | | | product. |
| growing niche, be sure to take into account these | | | | 12. There have been drastic improvements since the |
| thirteen (13) facts and how they can impact your | | | | first Reverse Mortgage was written in 1989 and, the |
| mortgage future: | | | | number of Lenders has increased. |
| 1. It is estimated that between 9,500 to 12,000 people a | | | | 13. Effective January 1st, 2009, the HECM Purchase |
| day turn 62 years of age and if they are home | | | | Program is now operational, allowing Seniors to |
| owners, eligible for a Reverse Mortgage. | | | | purchase a primary resident. |
| 2. Seniors that are 62 years of age and older (our | | | | On the surface you may feel that a Reverse |
| definition of a senior for this discussion), control more | | | | Mortgage could be the easiest type of loan you could |
| than three quarters of our nation's wealth. | | | | ever originate. After all...there's no "Credit Qualification," |
| 3. They are living longer and continue to be more | | | | no "Income Verification," and best of all...your |
| active than any generation before them. They, like | | | | commission is generally based on the value of the |
| many of us...continue to have goals, aspirations, desires | | | | home...not the loan amount. |
| and even problems...that they would love to solve. | | | | But please remember...a marketing niche is only as |
| 4. They have equity in their homes but don't have a | | | | good as the dedication, knowledge, expertise, and |
| clue how to convert their equity (non-liquid asset) into | | | | professionalism you are willing to bring to bear on the |
| spendable and useable cash (a liquid asset). | | | | marketplace. |
| 5. Originations of Reverse Mortgages have increased | | | | Yes...working with Seniors can and will prove to be |
| 109% for the past few years. In fact, each year for | | | | extremely profitable. Plus...You'll also get personal |
| the past 5 years the number of loans has doubled | | | | satisfaction and gratification as a result of your efforts. |
| each year. | | | | If your current organization or situation doesn't allow |
| 6. FHA endorsed 10,026 reverse mortgages in June | | | | you to originate Reverse Mortgages, you need to |
| alone, bringing the year-to-date total to 83,871. By | | | | either be the catalyst to change that...or, find a home |
| comparison, FHA insured 8,925 loans in June 2007 | | | | that does allow you to market to Seniors. |
| totaling 80,425. | | | | You can become very successful by dedicating |
| 7. Its estimated that there are now 75 million prospects | | | | yourself to Reverse Mortgages and the Senior |
| that would benefit from this type of program and that | | | | market. If you prepare yourself and your marketing |
| number continues to grow every day. | | | | program well, you can get ready to explode your |
| 8. Less than one quarter of all Mortgage Companies | | | | Mortgage Business. |
| currently offer the Reverse Mortgage product. Now is | | | | |