As reverse mortgages continue to play an increasing larger part of a mortgage company’s portfolio of business, many loan officers focusing on seniors and reverse mortgages are now being put under the microscope.
The reality is that we as a society place a value on various segments of our society, and pay special attention to those of cater to a specific group, under the guise of human rights. Almost every category seems to have a watchdog making sure that they are not being cheated or scammed in some fashion. This is not really a bad thing. For several years the mortgage industry has kept an eye out for our senior citizens, formally calling it a ban on predatory lending. As most of us know, mortgages can be tricky, with lots of catches, twists and turns, layered beneath a sea of legal mumbo jumbo. (I’m sure if I wrote mumbo jumbo in Latin it would have sounded so much better). However, the point is that a professional sales person wishing to deceive the elderly or anyone for that matter, can deceit them using a mortgage product.
It is with this mentality that the reverse mortgage product, has begun to enter into its own industry. In this case you have a product that is only for seniors, thus the need for regulation is not only important but a bit harder to control. Many professional lenders who have the desire to present reverse mortgages do so because they see a need in within the senior population and a product to meet those needs. Although these lenders would not be considered “a not-for-profit” organization or group, I would argue that they are passionate about assisting seniors and helping them achieve their goals.
The big question is how do you tell if a lender is looking out for the best interest of their senior client verse those who are simply looking to make quick buck or two? Well there are some things to keep an eye out for. First of all there is an organization called the National Reverse Mortgage Lenders Association, (NRMLA), which is an organization dedicated to assisting both seniors looking into reverse mortgages, as well as lenders serving the seniors. Loan Officers who are serious about the reverse mortgage industry often times are members of NRMLA. You can also ask your lender about the Code of Ethics for reverse mortgages. You should note that his reply speaks of both Value and Rules. If your lender replies, “yea, yea don’t worry, everything we do is ethical….” It might be a sign of them trying to change the subject, in which case you might want to change lenders. As a third general rule, many lenders catering to the reverse mortgage have gone through some form of training. I know the bank I used to work for had a very intensive training course, and gave out a certificate upon completion. That certificate not only meant that the banker knew what he or she was doing, but also the bank issuing the certificate also was confident in the abilities of that loan officer.
At the end of the day, many loan officers producing reverse mortgages for seniors do it because they want to keep seniors in their homes, and reward them for the equity that have built over the years. Reverse Mortgages are honest products sold by honest people. Their standards meet those of RESPA and FHA. So for any seniors who have heard about reverse mortgages, I would urge you to contact NRMLA and investigate some of the many qualified loan officers you can speak with.
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