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Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Reverse Mortgages
Reverse Mortgages - In The Spotlight
Senior homeowners who believe they have been left in the dark financially due
to the lack of money-generating options available late in life might not be able to see how a reverse mortgage
can help them convert their home equity into cash until an originator shines a light on the possibility for them.
The attractiveness of an underserved and growing demographic in the niche, combined
with the government backing the Home Equity Conversion Mortgage that dominates it, have made reverse mortgages
a relative bright spot in the origination business.
This appears to have drawn a lot of business to the niche. As you'll read in this
Special Report, for example, one title and settlement system provider has seen a boost in the use of its system
to process reverse mortgages.
While many aspects of reverse mortgages are relatively attractive in a business
sense right now, they have their challenges as well. Reverse mortgages have a complex origination process and a
sensitive clientele. Originating the loans requires a more consultative, slower approach than a typical forward
mortgage and there are some specific rules that originators involved in making the government product need to make
sure to follow.
In addition, among the reverse mortgage market's challenges is the fact that it
is growing increasingly competitive. One company you'll read about in the pages that follow, for example, has begun
offering discounts as a result.
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