Reverse Mortgages Gaining Momentum

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

Quote: "It's a fledgling business that is growing," says Nicholas Buscaglia, administrative vice president of M&T Bank, the only Western New York-based bank offering reverse mortgages. "Nationally, 38,000 reverse mortgages were funded in the last fiscal year, according to the National Reverse Mortgage Lenders Association. That's up from 18,000 done the previous year."
[quote=http://msnbc.msn.com/id/6966945/]Source[/quote]

BECCA9892003 · Joined: 20 Jan 2005 Posts: 400 Location: Altoona, PA

it is up and comming quickly..but it is something that requires training to do with limits..which i am glad they have..the last thing we need is money hungry loan reps trying to now make their living off the retirement of the elderly.....in the right situation it can be a life saver...but you need to know how they work and when to recommend one.

chow

David wrote: Quote: "It's a fledgling business that is growing," says Nicholas Buscaglia, administrative vice president of M&T Bank, the only Western New York-based bank offering reverse mortgages. "Nationally, 38,000 reverse mortgages were funded in the last fiscal year, according to the National Reverse Mortgage Lenders Association. That's up from 18,000 done the previous year."
[quote=http://msnbc.msn.com/id/6966945/]Source [/quote]

Wells Fargo offers these mortgages, so does anyone listed at Reversemortgage.org.

Anyone can write a reverse, most of us just refer them them to others who can actually make a buck or two. I think a few bucks is fair.

The reverse mortgage business is limited to people who will work for a dime or two, have a warehouse line, and know how to underwrite them. Having said that, I will refer these out when I see a need for them.

WORD TO THE WISE:

I even referred my own parent to another agency for the "training." While at the local HUD office, the trainer asked who was doing her loan, and had an issue with him. My mother looked at me, and said didn't you say the other company didn't do FHA equity programs like I requested? I looked at the trainer, told him I was a mortgage broker, this was my mother, and I didn't feel comfortable with the "Steering" attempt he was doing with my mother.

What he did not know was she was first doing a purchase of a new home, and that had to sit for three days on a warehouse line before we could do the refi into the Reverse Mortgage. I had worked out a deal with the lender to secure all funds with my own credit to get the first loan approved and her loan secured for the Reverse. The cost of the referring lender he was talking about were TWICE as much as what I had worked out for her.

yes, she went through two loans and 3 closings, but she got 40K at that last closing, a line of credit to pay escrows, and she is livinng in a condo she loves, and not paying anything but HOA, Ins, taxes.

Before that she was paying 1k a month in Mortgage, 200.00 in taxes, 75 in insurance and 85 in HOA fees. She now pays $150.00 a month for twice as much space, for Taxes, Ins, and HOA fees. She's 73 yrs old, and working full time in retail because she loves it.

I removed her stress.

chow · Posted: Wed Mar 09, 2005 9:00 pm Post subject:

You will also notice I have no problem with calling a "Spade a Spade" when it comes to education of Reverse mortgage products to our elder's and the family member's who have to attend along with.

IT HAS TO BE A VERY OPEN AND HONEST DISCUSSION.

Most of the time- as heirs, we will just go into the home when they pass away, and empty it out, and go from there. They got cash to live on, we didn't have to help them much, and they were/are independent and didn't need our help-which allows them to have better self esteem.

do any of us really want the house? 75% say no. 8) Throw a for sale sign up and take anything if there's anything left. Otherwise-it's the lender's/servicer's problem!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

yup.

I'm not surprised at the reaction either, but that's to be expected!

Chow you said something that is almost remotely 1/2 a compliment about my company. Kind of. Are you ill?

chow · Posted: Fri Mar 11, 2005 12:22 am Post subject:

Oh, we were trying to decide if we liked or hated your wholesale area today. Every time one of us submits a loan into underwriting- it's like playing the "gossip game" in a room full of drunken people!

the story starts out with:

"Helen was sitting on the porch" :wink:

6 days later in the UW area we find 50 stips....... Helen in under the porch, in a 12 foot deep hole, she's been stabbed, and buried in concrete, the porch didn't have a permit 80 years ago when it was built onto the house! :shock:

I actually apologise to the AE when he calls anymore! He calls, and I just take a deep breath, and say good luck! That poor guy has got to have lost at lease 10 pounds of his southside in the last month, just from 3 of us!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

haha. That's funny cuz our underwriters are totally cool ;) I like them loads!

chow · Posted: Fri Mar 11, 2005 6:48 pm Post subject:

I can't talk to my UW's at the WWF, I have to talk to some processor, who has to run the idea past this person and that person, then they might get to the UW.

And Lord Help Jesus if the UW ever talked to the 3rd party appraiser-before doing a desk review or after

Just because half of the tax cards are wrong??????? oooooops, tax cards wrong, drive by/review person couldn't verify sq footage!

Now that is 1 of 20 things this old dog of a UW, could complain about..... YOU CAN PLAY WITH SOME PEOPLE- MOST OF THE TIME.

I worked hard for my crows feet laden eyes, and lines on my face, and I have to talk to someone who's been on fax machine duty, popping bubble gum in my ear- to get a message to the UW?

See, it's all Regional. who you're dealing with. I admit the first transaction we did was Rocky. But-Rocky told the customer to come to her-via a broker.

Rocky needs to change her tag line!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

heh fun stuff.

Sorry you're having problems Chow! If you'd like me to send a note to someone, just gimme a name ;)

chow · Posted: Fri Mar 11, 2005 7:22 pm Post subject:

Nope, Nada, Not my fight-not your fight.

Well, it is part of my fight the AE took a whoopin' on the first file. But I figure if the person I work for-who used to be the Prez of INAMB can't get though- I'm at a loss.

I respect my boss, even if I have to agree -to disagree. I could still wake up in the morning-drive the whole 5 miles over to his office- and tell him he's right. (you don't want the wrath of my boss. I'd rather be shot with a .38 than have him yell at me again. I got it in 1998-once. I swore I lost 10 pounds in 30 seconds!!!!!)

He's right, he's your customer-He's a broker. We don't write bad loans.

When I worked in secondary buying closed loans-Every call was a sales call. (and if it wasn't-the AE heard about it, then ate my tail fur off!)

Hell hath no furry like my boss!

Jenie0109 · Joined: 27 Jan 2009 Posts: 307 Location: chicago IL

thanks for the info. what a great help.