I realized something to consider about the reverse mortgage business lately. Not one LENDER, COUNSELOR, BANK, MIDDLE OR SMALL SIZED SHOP, or REVERSE MORTGAGE ORIGINATOR does things the same in this industry!
With all of the FHA regulation, you’d think that things would be done similarly, but it is simply not the case, let’s break it down – (while I’m not sure that I have a point other than the fact that we are all different, yet chasing the same goals and benchmarks)
Lenders – Banks and other lenders have different UW policies, different condo certs, and different rate lock periods. And unlike years ago, MANY different products with caveats within each!
Counselors -this may be one area that HUD claims to control, yet varies the most. I have heard of some who talk customers out of the loan and those who think that a 5 minute review of the main reverse rules is sufficient. And there is everything in between. If the goal is to protect the senior client, the results are not measurable, and at best minimal protection.
Mortgage shops – Comp plans vary WILDLY from the bank that pays a minimal salary and BPS on production, to the mid sized players who offer ‘back end’ compensation, they share in the entire profit of the loan, to the boiler room operations doing phone sales all day, this is truly the wild west. Company support for marketing is non-existent in most cases, even though many claim that they “will give you leads” (have fun with those, and if they happen to be real, you will deal with the limited commissions, as any company that shares makes it up in lesser commissions to the producer. The PROCESSING of these loans is all over the place as well. Some do their own, some have dedicated processors, and some let the lenders do the processing.
Loan Originators – this is where I find the most differences, among the thousands of individual producers who at best have a plan that they follow religiously, and at worst wait in the office for the phone to ring. How each individual cultivates business, qualifies and educates a potential client, and from whom they procure the loan application from , and to which degree they participate in this entire process, is a study in chaos. So many different dogs chasing their tails in the seminar and direct mail arenas, it seems like most out there are looking for a magic bullet, which we all know, there is not. I will comment on what seems to work best in a future posting.
So, to sum it up, or at least try, I ask you – with all of these variables, and all of the options available to a senior today, what kind of care are our seniors really getting?