One interesting area that could be significantly affected by this is the reverse mortgage market. If the government continues to prop up subprime loans and prop up the banks (and preventing the market from performing necessary corrections, home values should stabilize and possibly even rise in the coming future.
Reverse mortgage lead generation companies, which watch changes in the marketplace and legislation closer than anyone other than the lenders themselves. Know that this will benefit the loan officers that are in the field trying to make living allowing seniors to access their equity, before there is no equity there. For many seniors, a regular forward mortgage is out of the question, because they cannot make the additional payment on their fixed incomes. Rising costs and the need for medical care have them trapped in a bad situation. Even though this does not, by any means, mean that all seniors are in the same position; many seniors need to have alternative presented to them that will allow them to keep their homes for the rest of their natural lives.
Unfortunately, FHA Modernization Bill looks like a bad piece of legislation for the reverse mortgage business. This looks like the work of the AARP and other senior associations that lately have worked to the disfavor of many seniors. This legislation essentially hurts the loan officers and feeds the banks, while creating good press for the senior organizations. In the end, it looks like the senior organizations are making a play for the reverse mortgage leads generation market for themselves.
Seniors should be looking to take advantage of the low interest rates now and access the cash for other use before the equity in their homes falls more. If you are a reverse mortgage loan officer, you should use direct mail reverse mortgage lead solutions. The more seniors you reach today the better your business will be, otherwise you will be working for the bank for free.
My friends and I have been around real estate for a long time and have networked with a number of professionals that have used the direct mail lead services. I thought I would check them out and look into the company history and then I made a test call to them to see what they offered and find out how effective their products were. I ended making a purchase for my cousin for a X-Mas present and he turn the $2,500 investment (my gift) into $620,000 for eight senior couples who had less than 50% LTV in their homes or better (so he said). He had a great return on my investment. It's funy how that works - my coin his profits! On top of that the seniors were happy with the service the professional service that the received and the time that he spent with them.
So, I asked him. How much did you make? He said a fair rate for the 2 months he spent working with the clients. He also said his boss made just as much and the mortgage company would make the most, because it would sell the loan at a premium, because it was guaranteed. Then he changed the subject to the loan system itself and coming legislation.
I'm going to paraphrase what he was telling me: Keep in mind, many of the most popular reverse mortgage products that are out there are guaranteed by the federal government and lately the lobbyists seem to be deciding that the banks should make all the money and the individual agents that are on a per dollar basis exposed to the most risk (due to the long time it takes to navigate the government required loan process that includes consultations.) So, essentially, it takes 5 to ten times as long close a reverse mortgage.
Most forward mortgage brokers out there, are used to a quick fix and a customer that understands there product. This is not the case with reverse mortgage and those guys will naturally weed themselves out and only the professional senior advisers will remain. Have of the forward mortgage guys will resort to buying cheap reverse mortgage leads from some company that doesn't even understand the market, then they will get frustrated and quit Labels: Legislation, reverse mortgage leads |
