It seems as though by the mountains of emails I receive regarding the reverse mortgage in other countries, America is not alone in their quest to exploit the popular new mortgage product. In Australia, brokers and estate planners are lining up to gain accreditation to complete the loans.
Over Fifty Group (OFG) and SEQUEL have partnered up to provide reverse mortgage accreditation courses for brokers and planners.
Driven by the growing popularity of reverse mortgages and equity release products, as well as growing pressure from consumer groups such as Choice, the course will be offered free, but with a $75 registration fee payable to SEQUAL.
Technical services manager Benedict Davies said the establishment of SEQUAL’s accredited course earlier this year helped develop the seminar program, which formalises training work OFG had already done in reverse mortgages,
“As a product provider, we want to ensure intermediaries who recommend the product have an acceptable level of training. It protects our interests but importantly it protects the consumer’s interests as well,” he said.
Benedict said he hoped to get around 100 planners and brokers to the sessions, 50 per half-day course.
Courses will be available in all mainland states, but will exclude Tasmania and the Territories. However, Davies said if there was demand, extra seminars could be arranged.
Written by charles dennis on August 3rd, 2007 with no comments.
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North Jersey Group has recently created a proprietary loan product for seniors currently residing in Co-Op’s which will be a welcome addition to the mortgage field.
And that is the problem for many seniors wanting to stay in their homes rather than having to sell to access the cash locked in their property. Until recently, reverse mortgages were not available to co-op owners in New Jersey, but now one lender has created a proprietary product that can be applied to co-ops as well as other types of dwellings, such as single family homes and condos.
The reverse mortgage addresses the dilemma faced by people rich with real estate but poor in cash by turning the equity in a senior’s home into available cash that requires no monthly payments, nor does it have to be repaid until the owner sells, leaves the home permanently or dies. No income is needed to qualify, either. The only requirement to be eligible for a reverse mortgage is that the borrower owns his or her home, be 62 years of age and not be delinquent on any federal debt. Loan amounts are calculated based on age and property value. Consumers should know that all reverse mortgages have some type of upfront fees making them more expensive than other mortgage products. Full Article
Written by charles dennis on August 2nd, 2007 with no comments.
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Greetings on this 4th of July. I received this great press release in my inbox and wanted to share. Enjoy the holiday!
WASHINGTON, June 28 /PRNewswire/ — Americans age 62 or older hold an estimated $4.3 trillion of home equity according to the NRMLA/Hollister Reverse Mortgage Market Index (RMMI). Although the reverse mortgage industry has seen tremendous growth in the last five years, only a little more than 300,000 reverse mortgages have been originated in its short history, representing less than 1% market penetration.
The index, launched today by the National Reverse Mortgage Lenders Association (NRMLA) and The Hollister Group is the first market indicator to collect critical market, housing and demographic data, and to track and project the market for reverse mortgages.
In the first quarter 2007 alone, there was a $19 billion increase in senior home equity. This increase was reflected in a 0.4% increase in the RMMI to 205.6 from 204.7 in the prior quarter. The index will reflect the current value of (more…)
Written by charles dennis on July 4th, 2007 with no comments.
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As I have often chronicled on this site, the Big Boys of Mortgage Banking, (Wells Fargo, Bank of America, Countrywide, etc.) are just warming up with their push to grow and win over the reverse mortgage market. The most intriguing trait of these big banks is their innate ability to cut out the costs that are found in government backed HEMC loans and create their own proprietary products that are much more consumer friendly. Whether you are for or against reverse mortgages, it is clear to see that banking competition is helping to drive down fat broker fees that have been a large part of critics’ argument against them. The Real Estate Journal had this to say in a recent article.
For instance, Bank of America, which recently acquired the reverse-mortgage business of Seattle Mortgage Company, said it will soon launch nationwide a reverse-mortgage product it’s offered to customers in Arizona since November. The product, called Senior Equity Maximizer, offers loans on up to $10 million of home equity, said Colin McCormick, reverse-mortgage product executive at Bank of America.
Bank of America’s product allows you to set aside a portion of your home’s equity to be preserved for your heirs, and the fees charged are a lower percentage of the home’s value than those charged on traditional reverse-mortgage loans. But the interest rate on the bank’s new product is generally higher, McCormick said.
Today about 90% of reverse mortgages are the traditional government-backed product, the most prevalent of which is the Federal Housing Administration’s home equity conversion mortgage, according to the National Reverse Mortgage Lenders Association, a trade group.
Borrowers have taken out about 71,500 new FHA-based reverse mortgages so far this fiscal year (which began Oct. 1), a 49% jump from about 48,000 loans in the same period a year earlier. From 1990 through to the present, about 310,000 such loans have been taken out, according to the NRMLA. Full Story
Written by charles dennis on June 27th, 2007 with no comments.
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Santa Ana, CA — (SBWIRE) — 06/20/2007 — California-based Reverse Mortgage Lending, Inc. Specializes in FHA insured Reverse Mortgages and currently serves the entire State of California and Hawaii. The high efficiency and decreased costs of internet marketing have lowered the company’s costs, allowing them to pass those savings on to the Seniors they help.
“Many people that could benefit from a Reverse Mortgage have been reluctant to go forward due to the high initial costs.” Said Wally Welter, President of Reverse Mortgage Lending, Inc., noting that a big percentage of those costs are actually set by the FHA.
“The decreased costs and efficiency of using the internet to disseminate information about our company and Reverse Mortgages is exciting. This has allowed us to significantly lower our costs. “ said Welter. “This means we can offer what we believe to be the lowest cost FHA Reverse Mortgage in the State of California. The absolute most anyone will pay in origination fees for loans we originate via the internet is $2995, and if the borrower is willing to complete the application process via the mail, we lower it to $2495. This results in putting almost $5000 of additional money in the pockets of our senior borrowers.”
A Reverse Mortgage enables homeowners who are 62 and older to turn part of their home’s value into immediate cash, for any purpose, and with no repayment for as long as they live in their home, and in the case of a married couple, for as long as one of them lives in the home.
The purpose of the Reverse Mortgage is to turn what was once inaccessible — the value of one’s home — into a liquid asset for use by seniors at a time when they need it most. “Seniors have worked hard for the equity in their homes; this program allows seniors to forget about making house payments and enjoy life”, said Welter “We seek to educate the public at-large and seniors specifically about access to this valuable resource, and provide it at the lowest possible cost to the borrower”
Written by charles dennis on June 20th, 2007 with no comments.
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Listed here you will find the top HECM lenders of 2007… as of (06/2007). Remember that this list doesn’t include any proprietary products. Also note that Seattle Mortgage Company is now Bank of America.
|
Lender |
# of Endorsed Loans |
| 1. |
Wells Fargo Bank NA |
7210 |
| 2. |
Financial Freedom Senior Funding |
4461 |
| 3. |
Seattle Mortgage Company |
1134 |
| 4. |
Liberty Reverse Mortgage Inc |
874 |
| 5. |
American Reverse Mortgage Corp |
686 |
| 6. |
Vertical Lending Inc |
608 |
| 7. |
Omni Home Financing Inc |
462 |
| 8. |
Urban Financial Group |
452 |
| 9. |
Academy Mortgage LLC |
427 |
| 10. |
M and T Bank |
421 |
Written by charles dennis on June 20th, 2007 with no comments.
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If you thought the USA vs. the USSR race to nuclear dominance was one for the ages, wait until you see Countrywide vs. BofA vs. Wells Fargo vs. the rest of the reverse mortgage banking industry. I have been watching Countrywide recruiting ads (for Simple Equity job fulfillment) pop up all over the country and thought to share this one from an Arizona career site with you guys. As I have stated before, competition is a good thing, but the little guys can remain competitive for so long, before the big guys swallow them up.
Written by charles dennis on June 14th, 2007 with no comments.
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