Reverse Mortgage Executives Perspectives: How The Business Can Grow and Scale in 2021

To close the coverage of the Reverse Mortgage Daily industry in 2020, we reviewed the Best Stories of the year that garnered the greatest readership based on our internal data. To kick off the new year, we also looked at four tendencies that the reverse mortgage industry is expected to watch in 2021.

Now that the new year has arrived and brings with it some notable new elements of the industry status quo, we figured we would briefly step back and let some of the industry’s top executives and leaders speak more to provide them with their unique perspectives and what they’re looking for as we dive deeper into the New Year.

Last month, RMD solicited senior management views from many of the major reverse mortgage lenders operating in the space today, with a general prompt so they don’t feel pressured to focus on a specific topic. We present their views to you in their own words, with answers edited only for the sake of brevity.

The changes in the makeup of the reverse mortgage status quo, the need to change internal dynamics and expand reverse business to normally traditional mortgage areas are some of the key things these leaders seek to accomplish in 2021,

Scott Norman, Vice President of Field Retail and Director of Government Relations at Finance of America Reverse (FAR)

Not only does our industry change regularly, but so do the basic concepts surrounding retirement. When you consider the advancements we are seeing in technology and science coupled with a new standard in social norms, today’s retirement is unrecognizable from what it was 10 years ago. Over the next decade, the population of people aged 75 and over could increase by 30 million people, and we must be prepared to challenge all of our beliefs to help create new and innovative ways for them. age safely at home. It’s time for us to start planning around the potential for 100-year lives and start working backwards on what a good retirement should look like.

Normand Scott

FAR offers highly demanded retirement solutions, and I’m very optimistic that this demand will persist through 2021, especially as we continue to innovate and find new ways to help Americans prepare for their retirement years. retirement.

In addition, the share of elderly homeowners in housing debt continues to grow at an unsustainable rate. Financial burdens are becoming more and more expensive for elderly homeowners, and we are seeing a disproportionate number of seniors who have lost their income due to the pandemic.

How many of them would benefit from knowing the benefits of a reverse mortgage? At FAR, we believe that everyone deserves an opportunity to live their best life in retirement. We will continue to invest in education, research and other partnerships so that potential customers and their families better understand the benefits of our products. This is also why we will continue to innovate and expand our range of exclusive products to meet the diverse needs of our customers.

Harlan Accola, National Director of Reverse Mortgages at Fairway Independent Mortgage Corp.

At Fairway, our goal is not just volume – but first and foremost – to change the lives of the families we serve. We intend to play a major role in changing the way retirement is done in this country. Starting with our own branches and our own loan officers, we first want to help over 62 clients purchase reverse mortgages rather than term mortgages.

Harlan accola

Because we have over 600 bureaus and over 4,000 loan officers producing over $ 60 billion in 2020, we are in the unique position of reaching large numbers of seniors and referral partners. Our loan officers work with thousands of real estate professionals and financial advisors.

We believe that before we point the finger at the government or NRMLA or the industry as a whole, we need to work internally at Fairway with our own team of loan officers and support people, and redouble our efforts to educate our reference partners. This is the main thing we covered in our planning sessions at the close of 2020.

Joe Langner, President and CEO of ReverseVision

Given HECM’s unique ability to help consumers weather the economic pressure of a pandemic-driven market, more independent mortgage banks will realize that they will “do good for good” in 2021. By 2020 , many lenders put HELOC programs aside and focused exclusively on a tsunami of refinancing volume, leaving behind homeowners who needed access to their equity. With the MBA forecasting that the refinancing volume will decline by 46% in 2021, independent mortgage banks would benefit from recovering the volume lost with HECM loans.

Joe langner

In 2021, ReverseVision is poised to help lenders retain the valuable business of senior borrowers with product enhancements that will make it easier than ever to integrate HECMs into the term lending environment.

In Q1, we’ll be showcasing a Calculator API that allows lenders to leverage ReverseVision’s comparison calculators directly from their preferred CRM, POS, or LOS. The Roadmap also includes an Attachments and Documents API, which will allow users to add document packages through a single request, dramatically reducing the time it takes to attach multiple documents to a loan case.

ReverseVision already has a rich customer base, which includes 49 of the top 75 independent mortgage banks. We anticipate that as lenders leverage our APIs to create tighter integrations between ReverseVision and their term systems, even more of the estimated 2.4 million loans to seniors who take out a mortgage each year will be showcased. and select an HECM.

More than ever, older consumers have an increased demand for options that allow them to age in home, as COVID-19 poses an acute risk to residents of senior facilities. Refinancing with an HECM or using an HECM for purchase can make home health care a viable option for many.

Ellen Skaggs, National Reverse Sales Manager at New American Funding

I truly believe 2021 will be another great year for reverse mortgages. We have gained a better understanding of the requirements for meeting the financial assessment. We are heading into the next year with solid real estate values.

Ellen skaggs

Increasing the maximum claim amount to $ 822,375 will help many other clients nationwide to benefit from the HECM program. The portfolio products have made positive changes and have grown across the United States. We’ve seen financial planners begin to understand the benefits of long-term planning for seniors and begin to embrace reverse products. Personally, I work with real estate agents and builders to educate them on the value of reverse loan as a buying tool.

New American Funding has a large futures operation across the country. I intend to help my team to work closely with our branches to expand the options to their clients. Term loan officers are not the originator of reverse loans, so we act as their partners in educating their clients, clients and friends. I will be expanding our reverse team this year to have loan officers located nearby and in our retail branches nationwide.

Editor’s Note: This is the second of two installments recounting industry leaders’ outlook on business in 2021, and you can read Part 1 here.

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