New Reverse Mortgage Jobs “Spring Ahead” into 2013 - Reverse Mortgage Daily

March 7th, 2013  |  by Jason Oliva Published in News, Reverse Mortgage, Reverse Mortgage Jobs

With March already underway, a number of reverse mortgage jobs have been springing up as lenders aim to strengthen their teams. 

Companies including Security 1 Lending, Reverse Mortgage USA and Generation Mortgage Co. are all seeking skilled reverse mortgage professionals across an array of expertise. 

There are open positions for nearly all types of reverse mortgage specialists nationwide, with jobs for loan officers, consultants, compliance analysts and sales managers, to name a few.  

Apply today.

Click the following opportunities that are now open for more information. Or for a complete list of jobs, visit Reverse Mortgage Jobs Online.

Originators/Marketing

• Compliance Analyst (Atlanta, GA) Generation Mortgage Co
• Compliance Analyst-Licensing (Atlanta, GA) Generation Mortgage Co
• Reverse Mortgage Banker (Austin, TX) Sente Mortgage
• Reverse Mortgage Loan Officer (Schaumburg, IL) Security 1 Lending
• Reverse Mortgage Consultant (Owings Mill, MD) Maverick Funding Corp.
• Reverse Mortgage Specialist (San Antonio, TX) VanDyk Mortgage
• Reverse Mortgage Specialist (Spring, TX) Reverse Mortgage Solutions, Inc.
• Reverse Mortgage Consultant (Nationwide) 1st Financial Reverse Mortgages
• HECM Processor (Columbia, MD) Proficia Mortgage Venture
• Reverse Mortgage Advisor (Philadelphia) Network Funding LP
• Senior Loan Officer (Irvine, CA) HighTechLending, Inc.
• Reverse Mortgage Consultant (Nationwide) Genworth Financial
• Wholesale Regional Sales Manager (Various) Genworth Financial
• Experienced Reverse Mortgage Loan Officers (Oakland, CA) Trinity Mutual
• Loan Officer (Nationwide) Reverse Mortgage USA
• Branch Partner (Nationwide) Reverse Mortgage USA

Visit our website for additional opportunities in the reverse mortgage industry.

The best and the brightest read RMD. Want them to join your team? Post your jobs to Reverse Mortgage Jobs Online today!

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Biz Bulletin: Use caution in considering reverse mortgages - Chattanooga Times Free Press

• BBB Chief Exective Jim Winsett

  Photo by Leigh Shelle Hunt

Q. My wife and I are considering a Reverse Mortgage. Please help me understand the pros and cons of this financial product.

A. If you have been within earshot of a television or radio in the last year, and then you have no doubt heard about reverse mortgages. While the term seems to be self-explanatory, most consumers have no idea how they work and being uneducated is dangerous territory when it comes to making a major financial decision.

A reverse mortgage allows homeowners to convert part of the equity in a home to cash without having to sell the property. In other words, it is a loan against your home that you do not have to pay back for as long as you live in your home. Due to the attractiveness of these loans, some senior citizens are being charged excessive up-front fees for services that are generally available free of charge, or at a very low cost through the Department of Housing and Urban Development (HUD).

The Better Business Bureau (BBB) advises consumers to use caution if approached with the opportunity to obtain a reverse mortgage; take the time to understand the requirements, consider all the factors involved, and learn what free resources are available to help make an informed decision. Most importantly, do not be swayed by celebrity spokespersons endorsing this type product until you have all of your questions answered.

The BBB provides the following tips when considering a reverse mortgage:

1) Know the basic requirements. To apply for a reverse mortgage, all owners of the home must be at least 62 years of age, have equity in the home and sign the loan paperwork. The home must be the primary residence and remain in good condition. Reverse mortgage borrowers continue to own their homes; therefore you are still responsible for property taxes, insurance, and repairs. If you fail to carry out those responsibilities, your loan could become due and payable in full. The loan process can not be initiated until the senior homeowners receives counseling from a Home Equity Conversion Mortgages (HECM) counselor.

2) Consult a Home Equity Conversion Mortgage counselor. Such a counselor will help answer questions regarding eligibility, financial implications and other alternatives. The Fair Housing Association (FHA) does not recommend using any service charging a fee for referring a borrower to an FHA lender as FHA provides all the information free of charge and HECM housing counselors are available free or at a very low cost. For a list of approved counseling agencies, call 800-569-4287 or visit the HUD website at www.hud.gov.

3) Involve heirs in the decision-making. Because a reverse mortgage affects the assets of the borrower in case of death, involving heirs will avoid future misunderstandings and family discord.

4) Make sure a reverse mortgage suits your needs. The amount you can get from a reverse mortgage generally depends on your age, your home's value and location, the cost of the loan, and who is making the loan. Determine whether it is practical to remain in the home for 5-10 years to make the reverse mortgage economical. Also take into consideration future health care needs as well as safety and ease of use of the home.

5) Consider all costs associated with obtaining a reverse mortgage. Be prepared to pay for some of the fees involved in the processing of a reverse mortgage loan, which can include an origination fee, closing costs, a mortgage insurance premium, a servicing fee, and the interest rate.

6) Understand the repayment terms. A reverse mortgage loan must be repaid in full when the owner dies, or sells the home. Other conditions that affect loan repayment include failure to pay property taxes or hazard insurance, allowing the property to deteriorate, and if the borrower permanently moves, has a new primary residence, or fails to live in the home for 12 consecutive months.

Understand that because you make no monthly payments, the amount you owe grows larger over time. As your debt grows larger, the amount of cash you would have left after selling and paying off the loan (your equity) generally grows smaller. But you never owe more than your home's value at the time the loan is repaid.

BBB and the FTC are receiving complaints on reverse mortgage loans. Consumers need to be aware that both spouses should be listed on the loan contract. There are issues where one spouse is not yet 62 years old, and is promised that they can be added to the contract later. Unfortunately, complications arise and the older spouse dies before the younger has a chance to be added to the contract. This leaves the total amount of the loan due to be paid immediately. The living spouse, effectively buying the home back from the loan originator, or face foreclosure. Many spouses do not have the money to pay off the loan, and thus are evicted from their homes. Also being reported is that reverse mortgages have troublesome incentive structures to encourage brokers to direct seniors toward lump-sum loans. This type loan carries a fixed interest rate rather than a line of credit with a variable interest rate. In a lump-sum contract the interest charges are added each month and over time can exceed the original loan.

As with any program, reverse mortgages can be ideal for some consumers but BBB urges you to ensure that you have all of your questions answered before committing.

Get answers to your questions each Friday from Jim Winsett, president and CEO of the Better Business Bureau Inc., which serves Southeast Tennessee and Northwest Georgia. Submit questions to his attention by writing to Business Editor Dave Flessner, Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN, 37401-1447, or by e-mailing him at dflessner@ timesfreepress.com.

Walter Secures $100 Million Warehouse Line for RMS Reverse Mortgage ... - Reverse Mortgage Daily

March 7th, 2013  |  by Elizabeth Ecker Published in News, Reverse Mortgage, RMS, Walter Investment

Reverse Mortgage Solutions under its parent company Walter Investment Management Corp. (NYSE: WAC) announced this week it has secured a $100 million credit line with the Royal Bank of Scotland.

The warehouse line is provided by RBS as a master repurchase agreement on an uncommitted basis, to mature February 26, 2014, according to Walter's filing with the Securities and Exchange Commission.

"The Warehouse Facility will be used to support RMS's funding obligations in connection with its reverse mortgage loan origination business," the company stated.

Walter has recently made its entry into the reverse mortgage space with its $122 million acquisition of RMS in 2012. Walter also has a deal pending to acquire Security One Lending for $31 million, expected to close in 2013.

The company has also been purchasing mortgage servicing rights, as well as having recently acquired the servicing platform of MetLife Bank.

Walter executives said earlier this year that anticipated changes to the Federal Housing Administration's reverse mortgage program were unlikely to impact loan volume.

Written by Elizabeth Ecker

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Senator Introduces Bill Allowing FHA to Make Reverse Mortgage Change - Reverse Mortgage Daily

U.S. Senator Robert Menendez (D-N.J.) introduced a bill yesterday that would allow the Federal Housing Administration (FHA) to implement reforms to its reverse mortgage program.

The long-awaited changes have been a subject under discussion among the industry, Congress members and the FHA, which has been seeking the authority needed from Congress to make the necessary changes.

Coined "The HECM Stabilization Act of 2013," the bill, S. 469, allows the FHA to implement "much-needed" program reforms. Under the bill, those include reducing the amount of money taken by borrowers at origination to sustainable levels; performing borrower financial assessments to determine if a HECM is affordable; and establishing escrow accounts with lenders to prevent foreclosures from tax and property insurance delinquencies.

"HUD has made some changes to help keep the program afloat, but their hands are tied," said Menendez. "I urge my colleagues to pass my bill immediately so HUD can make additional, necessary reforms to keep the program alive, while also reducing taxpayer liabilities by billions of dollars over the coming decade."

During a hearing last week before the Senate Banking Committee, senators said they were willing to consider granting FHA the authority to make changes to its reverse mortgage program. The introduction of the bill solidifies that commitment.

Congressional authority would enable FHA to expedite its reform process, rather than having to go through rule making to change program regulations, which could take months and even years.

The National Reverse Mortgage Lenders Association (NRMLA) expressed its support of Menendez's bill.

"We are glad to see Senator Menendez step forward to introduce the bill that gives HUD the authority it needs to manage the program," said NRMLA President Peter Bell.

The bill has received support from NRMLA as well as senior borrowers represented by the Coalition for Independent Seniors.

Written by Jason Oliva

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AAG Continues Wholesale Reverse Mortgage Growth, Hires New AE - Reverse Mortgage Daily

American Advisors Group (AAG) has made yet another addition to its wholesale lending team with the announcement of Laurel Anderson as account executive. 

Anderson's duties will include developing relationships with new partners and helping AAG advance its growing wholesale channel, the company announced last week.  

Before joining the wholesale division at Generation Mortgage Company in 2011, Anderson worked in the title sector as an account manager for Premier Reverse Closings.

"I'm very excited to be a part of the AAG team and I'm looking forward to helping build its wholesale division and share industry expertise with our clients," Anderson said.

Anderson is AAG's newest addition to its wholesale lending team that has been scooping up reverse mortgage executives across the industry in the last several months.

In January, AAG hired former Generation Mortgage wholesale executive vice president Kim Smith to oversee the company's wholesale channel. 

And last month, the company also brought on Alison Calamia to its wholesale team, who also worked as an account executive for Generation. 

"Laurel's six years of experience in the reverse mortgage industry, coupled with her dedication to her clients and great work ethic, has made her one of the most impressive account executives I have had the pleasure to work with," said Kimberly Smith, senior vice president of AAG wholesale lending.

Written by Jason Oliva

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Reverse Mortgage Lenders to Congress: Loan Cap Presents a Major Issue - Reverse Mortgage Daily

A longtime rule limiting the total number of reverse mortgages allowed under law came to the attention of senators last week during testimony presented by the National Reverse Mortgage Lenders Association.

In prepared testimony presented to the Senate Banking Committee, NRMLA President and CEO Peter Bell reviewed the history of the "authorization cap" for reverse mortgages under the Federal Housing Administration's insurance program.

Currently set at 275,000 loans, the cap has been suspended numerous times under appropriations or continuing resolutions. However, the number of loans outstanding exceeding that cap presents a "major issue," for reverse mortgage lenders, Bell said.

"A major issue faced by the reverse mortgage industry is that, while the HECM program was made permanent back in 1998, there has been a statutory limit on the number of loans FHA is authorized to insure," Bell said in the testimony. "Although the cap has been routinely raised or suspended by Congress in a series of consecutive appropriations measures and continuing resolutions, the existence of the cap deters some industry participants from making the commitment required to fully embrace reverse mortgage lending, thus keeping competition in the market at a minimal level."

Historically, the cap has been raised from 2,500 loans in 1990 to 25,000 loans by the end of 1995. Subsequent raises of the cap led to its current level, set in 2006 at 275,000. 

The cap must be addressed as one of the program measures being considered by Congress, NRMLA said. 

"NRMLA urges Congress to support the continued availability of Home Equity Conversion Mortgages by permanently removing the cap on the number of HECMs that FHA may insure to minimize any possible disruption in the availability of this importance personal financial management tool," Bell said. 

Written by Elizabeth Ecker

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MetLife Research Outlines Future of Aging-In-Place - Reverse Mortgage Daily

Homebuilders, designers, realtors and reverse mortgage specialists have become integral to helping seniors age in place, according to a study from MetLife Market Institute. 

Whether it is providing older adults with affordable living options, home renovations to meet the needs of its aging inhabitants, or supplying them with financial equity during retirement, these professionals play pivotal roles in creating what MetLife calls "livable" communities to foster the aging in place initiative.

Conducted as joint research between MetLife Market Institute and the Stanford Center on Longevity, the Livable Community Indicators for Sustainable Aging in Place study measures indicators that make the best communities for people transitioning into the older age group. 

A key finding of the research was housing that is accessible, affordable and adaptable to the changing needs over an individual's lifespan is a critical component of a livable community. 

About 29% of U.S. homeowners age 65 and older live in homes built before 1950, according to study findings, many of which do not include physical features that improve accessibility for older individuals with impairments or disabilities.

Affordable housing could be a "major barrier" to aging in place, MetLife suggests, as a 2004 survey from the Center for Home Care Policy Research found that a majority of adults claimed they spend more than 30% of their income on housing.

The same survey also reported that more than one-third expressed they are note confident their current home will remain affordable as they age.

These seniors not able to cover their housing costs may be at an increased risk for relocation to other housing options such as low-cost housing and even nursing homes, MetLife writes. 

"We know people generally prefer to remain where they are as they age, connected to friends and family, and communities lose an economic and social asset when older people leave," said Sandra Timmermann, Ed.D, director of the MetLife Mature Market Institute. 

Strategies to achieve change include adopting incremental changes, focusing initially on low-cost policies and programs, and partnering with other stakeholders, the study writes. 

"Local governments should think about how to adapt these indicators to best meet the needs of their residents," said Amanda Lehning, who collaborated with the Stanford Center on Longevity on the report. 

Efforts to help seniors age in place also has the potential to improve the community as a whole, Lehning says, as older adults not only can make valuable contributions as neighbors, caregivers and volunteers, but also patronize local businesses and are a factor in tax revenues. 

View the report. 

Written by Jason Oliva

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Live Well Hires Former MetLife Manager to Grow Reverse Wholesale ... - Reverse Mortgage Daily

March 5th, 2013  |  by Elizabeth Ecker Published in Live Well, News, Reverse Mortgage

Live Well Financial announced today it has hired former MetLife regional wholesale manager Patrick Fay to help growth in its reverse mortgage wholesale and correspondent lending channels. Fay, who served as eastern regional director for MetLife's reverse mortgage wholesale and correspondent lending brings six years of reverse mortgage experience among more than 25 years in the mortgage business. 

With Fay's leadership as vice president of reverse mortgage correspondent lending, Live Well is working to grow those business channels. 

"Patrick brings an in-depth understanding of correspondent lending to the Live Well Financial team. His industry contacts and ability to recruit responsible business partners together with our status as an active GNMA HMBS issuer should be a winning formula to expand our production in a prudent manner,"
said Michael Hild, chairman and CEO of Live Well Financial.

Live Well received Ginnie Mae approval in 2012 and has since begun issuing reverse mortgage securities totaling more than $500 million. The company is aiming for growth across business platforms with the new hire helping to boost that presence. 

"[Patrick's] success at growing the MetLife wholesale and correspondent business will be invaluable to our company as we continue to provide
our customers with our simple business proposition of competitive pricing ,best in class service and no hassle underwriting," Hild said. 

Written by Elizabeth Ecker

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New Research Reveals Misconceptions of Baby Boomer Marketing - Reverse Mortgage Daily

A seemingly small distinction like whether a voice is male or female can actually make a world of difference when marketing to the baby boomer audience.

A female voice will heed better response when used to market products that have some connection to care, love or nurture, while a male voice is more trusted when describing the technical aspects of a product, such as a financial tool.

These are the findings of recent research conducted by Coming of Age, a marketing agency geared specifically toward the aging baby boomer demographic.

A paradigm shift in the way older adults think and behave will necessitate new rules, mindsets and processes when marketing to boomers and older consumers, says Coming of Age Principal Jim Gilmartin, based on those findings.

Most of the marketplace's adult members are in the years when "self-actualization" occurs, says Gilmartin, an idea that has given birth to several consumer attributes now present in the marketplace as a result of an aging population.

Perceptions have become more conditional and less absolutist among this group, says Gilmartin. But outside of appealing to a consumer's sensibility, Coming of Age has identified several tried-and-true practices in marketing to the "senior" population.

In addition to the voiceover findings that can be applied to TV or radio advertising, still photos were tested as having a negative appeal among boomers.

Image association and the impact of neurological response on the brain should be considered when marketing to an older audience, as cognition plays a pivotal role in interpreting advertisements, Coming of Age says.

Marketers should consider photographic ads, as pictures in motion arouse the brain quicker than still-frame images. Because motion pictures convey vitality, Coming of Age urges marketers to avoid still, lifeless images "like the plague" when targeting boomers and senior customers.

Instead, by playing to boomers' "hot buttons," marketers can gauge how an individual will respond to a certain product.

Because the mind has a natural bias toward preserving old or familiar ways of thinking, changing these mental triggers is a lot harder to do after an individual's early adult years.

As no two sides of the coin are the same—nor are two boomers for that matter, says Gilmartin, who believes that the most significant pitfall any marketing brand can do is lump all boomers in the same group.

"The 'average' consumer doesn't exist," says Gilmartin.

The key to the older customer's pocketbook, he says, is in a better understanding of their minds.

With respect to making discretionary purchase decisions, boomer and older customers tend to display three distinct characteristics regarding sensitivity to price, affordability and value.

These include having a decreased sensitivity to price, an increased sensitivity to affordability, as well as a "sharply increased" sensitivity to value.

"Value determination by boomer and older customers tends to be an existentialist exercise whereby soul values as well as mind and body values are combined into the value determination process," says Gilmartin.

Similar awareness can be observed for older consumers as they develop increased price-sensitivity when they age, adapting what Gilmartin calls "higher economic literacy" to get the best price.

In purchasing "need" items, boomers tend to be more bargain-minded, whereas in purchasing "desire" items, they tend to be more value-minded.

While marketing to younger generations has been easier to analyze and sell to in the past, says Gilmartin, understanding this older demographic will compel marketers to figure out the values and behaviors of boomer and older consumers.

With the age 65 and older population projected to reach 88.5 million by 2050, according to U.S. Census data, adults over age 40 stand to be what Coming of Age calls the "New Customer Majority."

"Emotions drive the purchase decision," says Gilmartin. "As important as it is to understand what boomer and older customers think, it's even more important to understand how they think."

Written by Jason Oliva

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Reverse Mortgages: Good or Bad? - Pagosa Daily Post

As with everything in life, something can be good for some and the same thing can be bad for others. The same is true of reverse mortgages.  Over the next several articles, we will take a look at reverse mortgages, the myths, the facts, and whether or not they are "good" or "bad".

A reverse mortgage is a financial way of turning home equity into cash for the senior homeowner. The name came from the fact that the reverse mortgage is the "reverse" of a traditional mortgage, wherein the bank makes a payment to the homeowner instead of the homeowner making a payment to the bank each month.

Reverse mortgages began, believe it or not, in the 1960s, when we Baby Boomers were still in Junior or Senior High School.  The originals were non-regulated, extremely expensive, sometimes deceptive, and, quite possibly, a few were highly immoral, if not illegal.  But in reality, the new "reverse mortgage" in general helped out many seniors and served their purpose of making life easier financially for the retired segment of our population. 

The first reverse mortgage was made by a Savings and Loan Company out of Portland, Maine.  Soon others saw the benefits of making reverse mortgages, benefiting both the seniors and, of course, the lending institutions. Not too much later, more and more banks and savings and loan companies, as well as private investment firms, began participating. In the 1970s, the product continued to grow as more and more seniors saw the need to have additional income; however, the seniors did not have any of the protections that we have today.

In the early 1980s, a government committee saw a need to standardize the reverse mortgage product, as well as to offer some protections to those who were receiving the loans. Other committees in the mid-1980s saw a need for FHA insurance and uniform lending practices for the lenders, further protection for the borrowers.  Finally, in 1987, Congress authorized the FHA to insure reverse mortgages.  President Reagan signed the bill into law in early 1988.  The first FHA insured loan was made in 1989. The HECM (Home Equity Conversion Mortgage), as the FHA insured reverse mortgage product is known,  was on its way and is currently the only reverse mortgage available; Fannie Mae dropped their Home Keeper reverse mortgage product a couple of years ago as they failed to be competitive with the FHA HECM loan.

Despite the economic downturn, the issues with forward, traditional mortgages, and the housing market problems, reverse mortgages continue to grow as a HUD (Housing and Urban Development)  regulated program, insured by the Federal Housing Agency, providing a safe and effective way of allowing seniors to tap into the equity in their home  to make retirement more financially stable and provide more cash for the unseen events that always occur later in life. Don't forget that in the mid-1930s, the 30 year fixed, government insured loan, with standardized interest rates and underwriting guidelines was initiated. The furor over that was tremendous: "Beware! You will lose your home or go broke if you get one of these new-fangled loans!" Who can blame them?  Until then, the best you could get was an interest only, 5 year balloon mortgage that required about 50% down. How would you like one of those today? How many people do you know now would be able to get a loan with those terms? How many seniors on fixed income do you know who cannot qualify for our "new" traditional 30 year loan or a bank equity line of credit?

NEXT TIME: HECM  BASICS. WHAT IT TAKES TO QUALIFY.

George R Johnson is a Reverse Mortgage Consultant at LeaderOne Financial Corp.
George has lived in Pagosa Springs for 15 years previously working in the traditional mortgage division with Wells Fargo. He made the transition to Reverse Mortages in 2007.
George can be reached at 970-507-0467 or e-mail at georgejohnson@leader1.com

 

Lottery to Subsidize Taiwan Pilot Reverse Mortgage Program - Reverse Mortgage Daily

A reverse mortgage pilot program has launched in Taiwan in order to address the rising number of older citizens facing financial insecurity, according to local reports this week. The program will be funded in part through a government subsidy resulting from Taiwan's lottery revenues.

The program, currently set to be carried out through 2017, will operate as a trial for 100 people who are aged 65 or older and who are single, without any heirs. In order to qualify for the program, they must not qualify for assistance under the country's Public Assistance Act.

Certain caps will be placed on the homes' values, depending on where they are located. Monthly payments to the reverse mortgage borrowers will be calculated depending on the age, gender and home value.

Taiwan Today writes:

Chuang Chin-chu, a section chief with the MOI Department of Social Affairs, said the property value standard announced by the central and local governments varies each year. "In 2013, it is capped at NT$7.76 million (US$263,051) for Taipei City, NT$5.25 million for New Taipei City, NT$3.75 million for Kinmen and Lienchiang counties and NT$4.8 million for the rest of the country."

Lee said the Land Bank of Taiwan will work with the government on this policy. "The amount paid out every month to the homeowner will be calculated according to the value of the asset, as well as the age and gender of the applicant."

For example, for those 70 years old owning real estate worth NT$10 million, a man will receive NT$34,800 monthly, while a woman will get NT$30,300, Lee said. "The variation is based on the longer average life expectancy of women."

Properties worth more will generate higher allowances, he explained. "A 70-year-old female owning real estate valued at NT$5 million will be given NT$15,000 per month, compared to NT$21,100 and NT$27,200, respectively, for women of the same age with houses worth NT$7 million and NT$9 million.

"Payments will increase by 1 percent each year to keep up with inflation and will continue until the homeowner passes away," he said.

"Compared to foreign reverse mortgage programs, mostly operated as a financial product, the plan in Taiwan is implemented through a social welfare model," Lee continued. "The Ministry of Finance will provide a subsidy of NT$64 million with surplus lottery money as the source."

Read the full article at Taiwan Today.

Written by Elizabeth Ecker

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