Reverse mortgage originators bare a huge burden!
by Sam Collins
Have you ever considered the enormous burden you have as a reverse mortgage originator? Because of the huge financial burdens being exercised on our senior homeowners today, there is an equal amount of burden being placed on reverse mortgage originators.
The reasons for burden are many. The ones that come to mind are the recent reductions in principal loan limits, then couple that with reductions in home prices, you have a recipe for burden. These facts are proven in the recent major reduction in reverse mortgage originations. The burden for reverse mortgage originators is twofold:
First, we are seeing more and more senior homeowners not qualifying. In fact, some are faced with losing their homes and being left homeless, having to move in with the kids, or becoming a ward of the state (goverrment). This is changing the burdens on us and our clients. This leads us trying to find more solutions for our clients. Yes, you could just walk away when someone doesn’t qualify or you can take another step, such as trying to negotiate a short refinance. But, this too adds a burden. Time! How do you find the time and if it doesn’t work, who will compensate you? So the burdens are many, including financial and moral in nature.
Second, because of reductions in the principal loan limits and deteriorating home prices, we are finding that less and less people are qualifying for adjustable rate reverse mortgages and the percentage of fixed rate reverses are the only alternative. Burden vs solution. If not for the fixed rate product many clients today would be losing their homes. However, we are faced with a heavy burden, trying to keep objective with our product offerings. It is a dilemma we are faced with daily in our world as reverse mortgage originators. The burdens of our financial world today seem almost incomprehensible, with insurmountable financial pressures being applied to all walks of life. However, less not we forget those who gave us the qualify of life we enjoy today! Cannot there be found the resources to assist our aging homeowners? Where is the burden?
