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Special Reports
Reverse Mortgages
1st Mariner Bank/NGFS Providing Discounts, Settlement Guarantee
Aiming to compete by adding incentives
By James Comtois
As a means of simplifying the process of getting a reverse mortgage for its senior
clients, as well as increase its market share and grow its business, Baltimore-based Next Generation Financial
Services, a division of 1st Mariner Bank, is offering new discounts and a settlement guarantee on reverse mortgages.
"We're trying to add value to our senior clients by reducing the expenses associated with reverse mortgages,"
said Brett Carter, president of NGFS. "Once seniors make the decision to get a reverse mortgage we want to
make it as quick and as easy as possible for them."
"As the reverse mortgage industry becomes more competitive, we want to show
seniors that when doing business with Next Generation Financial Services, their satisfaction and wellbeing are
our top priorities," said Valerie VanBooven, director of marketing for NGFS.
One new benefit that the company is offering its clients is that effective immediately,
NGFS will no longer require the applicant to pay for the cost of the appraisal at the time of the application.
Instead, NGFS will pay for the appraisal and collect the fee at settlement. The applicant is responsible for the
appraisal fee if their loan does not settle.
Also, NGFS will pay the attorney fee for all reverse mortgages. This means a direct
reduction to the closing cost of $750 on average for all NGFS reverse mortgage clients. This only applies to reverse
mortgage transactions.
NGFS, according to Mr. Carter, will also settle the loan within 30 days or less
from the time the completed application is received or reduce the origination fee by $1,000. "We want to grow
our business and increase our market share, and we think this a great way to increase business as well as provide
value to our senior clients," Mr. Carter added.
These discounts and new benefits follow NGFS and education funding and information
provider SAGE Scholars recently teaming up to provide potentially more than $50 million in scholarships for the
grandchildren of all current and future reverse mortgage clients. Scholarships in the amount of $5,000 will be
awarded to any grandchild or great-grandchild of a client who has completed a reverse mortgage through NGFS. "Now
grandparents have a way to contribute to their grandchildren's higher education regardless of their financial situation.
"There are over 200 private colleges across the country that offer these
scholarships. We are excited about this opportunity for hundreds of grandchildren across the country," said
James B. Johnston, founder and architect of SAGE Scholars.
According to Mr. Carter, although many people within the industry want to enter
into the reverse mortgage market, these lenders need to make sure they offer their clients extra attention. "Inflation
and the cost of medicine are putting a strain on the baby-boomer generation.
"We've seen a lot of lenders enter into the senior market. These people need
to make sure to work for the best interest of the senior client.
"We have to hold ourselves to a higher standard to help the senior client."
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