How to choose a reverse mortgage professional. byAmara Rose September 4, 2012

Six Steps to Selecting a Reverse Mortgage Professional

You’re retired, have solid equity in your home, and have been seeing ads for reverse mortgage, or HECM (home equity conversion mortgage). You’re thinking this might be beneficial for you now. How do you go about choosing the right professional to assist you?
Here are six guidelines for selecting a reverse mortgage originator (also known as a loan officer):
#1: Experience. In any field, experience is primary, and nowhere is this more crucial than when it comes to your home and financial security. Ask how long the reverse mortgage professional has been doing this type of work, and note from their response whether he or she seems to enjoy it.
A corollary to the above: is reverse mortgage lending all this person does? You want someone who has a passion for serving seniors, and who will be focused on you — not someone who’s dividing their time and attention between other types of loan activity. Because reverse mortgage is unique, it requires a dedicated specialist. After all, you wouldn’t consult a foot specialist for a hearing problem, right?
#2: Education. Like other professions, the reverse mortgage field has licensing standards. An NMLS (Nationwide Mortgage Licensing System) number tells the consumer a reverse mortgage originator has “passed a background check,” so to speak, and is generally competent to handle loan transactions. Another measure of education is how well the professional knows the history of the reverse mortgage industry, and can explain how this impacts you as a potential borrower today.
You’ll also want to ask about continuing education. Someone who has earned their CRMP designation — Certified Reverse Mortgage Professional (NRMLA) — has demonstrated superior knowledge and competency in the reverse mortgage field, and is dedicated to upholding the highest ethical and professional standards.
#3: Reputation. Business, like life, turns on relationships. Ask your prospective reverse mortgage originator which professionals in the community can recommend them. Financial planners, elder law attorneys, CPAs and senior care providers are all good sources who can potentially speak to a loan officer’s reputation.
#4: Resources. You want to be sure the company you choose can meet your needs. Ask whether they offer a variety of reverse mortgage products, such as both the Traditional (Standard) and “Saver” HECM, as well as fixed and adjustable loan rates. A full portfolio of products gives you more options for making the best choice for your specific situation.By the same token, ask, “How large is your organization?” While you don’t need to deal with a huge company, you do want the group you select to have a consistent track record of closing loans and handling consumer needs.
#5: Service after the sale. A reverse mortgage, by its very nature, implies an ongoing relationship. Ask, “What’s your policy after the sale is complete? Will you be available to answer any questions I may have, and later for my children if they need help selling the house?” Ideally, the company you choose will have been around long enough to have assisted the families of those who’ve purchased a reverse mortgage, once it’s time to pay back the loan.
#6: Planner vs. Product Promoter. As noted above, you’ll do best with a loan officer who cares deeply about seniors and is focused on the big picture: your income, your expenses, your health, how long you plan to remain in your home, etc. — all of which helps to shape the type of product you choose. A reverse mortgage professional whose first concern is senior service will be your partner in making a wise financial decision.

Survey Says

Survey Says  -   We all remember the days when Richard Dawson host of Family Feud, would utter those famous words, “Survey says’, and viewers, players, and audiencemembers alike would all anxiously anticipate the answer.

Let’s pretend for a brief moment that I, Scott Underwood, am the host of Family Feud. The question is: ‘What income do Senior Citizens rely on to make ends meet in their retirement years?’

·                Expect to work beyond retirement years

·                Live on Social Security alone

·                Rely on savings

·                Rely on relatives

·                Get a Reverse Mortgage on their existing home

The truth is any one of these answers could fit your situation. There is no one size fits all answer. Some of the surveys that I have recently read stated 75 percent of middle-income people between ages 45-65 surveyed expect to have to work into their retirement years. Another survey said the percentage of economically insecure seniors has surged 75-percent, according to the Institute on Assets and Social Policy’s brief titled: From Bad to Worse: Senior economic security on the rise. According to a July, 2011, Research and Policy Brief, circumstances for retired seniors have gone from bad to worse, as household budgets are increasing while household assets are draining away.

Today more and more people age 62 and above are using the Federally-Insured Reverse Mortgage program so they can retire at their desired retirement age or supplement their current retirement income. Many people just want to get rid of their mortgage payment. It’s not just the homeowners that are reaching out to me now; it’s also their adult children trying to find the funding to keep their parents in their familiar home by using the equity to pay for in-home care.

To fight senior fraud and abuse, the FHA constantly updates safeguards to ensure people in my industry aren’t “doing the wrong thing”. One of the best safeguards in place is required counseling by a HUD-approved housing counselor.  I can send you a list of HUD Certified Counseling Agencies, so you can contact the agency of your choice. Reverse Mortgages require independent third-party counseling just to make sure that seniors fully understand the entire process of Reverse Mortgages.

One key component of the Reverse Mortgage program is that as the senior homeowner, you can never owe more than your house is worth thanks to FHA mortgage insurance. This is an integral part of the Reverse Mortgage program.  The loan is not due and payable until the last borrower no longer occupies their home as their principal residence.

My goal is simply to help educate Alabama’s seniors and their families on how the federally insured Reverse Mortgage program can assist with various retirement needs from eliminating monthly mortgage payments, credit cards balances, funding in home care, home improvements / modifications, or supplementing retirement income. I would be happy to provide by an illustration and information at no obligation to help you start to determine if the Reverse Mortgage is the right fit for you.

You might assume that dealing with a big bank, a 1970’s actor with a TV commercial, a voice on the other end of a long distance call, or a website might help you get a little more money; but it is simply not the case. Working with me, Scott Underwood,  the local “Reverse Mortgage Guy” will get you as much as possible from your home while getting local face to face service. My appointments are always flexible and I can make house calls when needed.

My concentration and expertise has been only in FHA Reverse Mortgages in Alabama since 2007. This is all that I do! I have A+ rating with the Better Business Bureau and am member of the National Reverse Mortgage Lenders Association (NRMLA).

Please call Scott Underwood, Reverse Mortgage Professional, locally at 205-908-2993, toll free at 1-866-254-1424, or email at Reversemortgagealabama@gmail.com.