Improving the conversation
During a recent discussion, a reverse mortgage expert emphasized the importance of simplifying the presentation of the Home Equity Conversion Mortgage (HECM) for Purchase program. He highlighted that the reverse for purchase option is often misunderstood within the industry, leading to missed opportunities for potential borrowers.
He explained that the HECM for Purchase is actually easier to explain compared to traditional reverse mortgages, as it offers a more straightforward solution for individuals looking to purchase a home. By addressing common stigmas associated with reverse mortgages, the program can provide a positive and beneficial experience for borrowers.
Another industry professional noted that while there are still challenges in effectively communicating the benefits of HECM products, there has been progress in enhancing the dialogue around reverse mortgages. By empowering reverse mortgage specialists to effectively convey the advantages of these products, more borrowers can benefit from the financial opportunities they offer.
Looking ahead, there is a collective effort within the industry to simplify the language used to describe reverse mortgages and make them more accessible to a wider audience. By providing additional support for forward mortgage professionals interested in originating reverse mortgages, the industry aims to bridge the gap between the two sectors and create a more cohesive approach to serving borrowers.
Collaborative opportunities
At New American Funding (NAF), there has been a positive shift towards collaboration between the reverse mortgage division and forward lending professionals. This collaborative approach has been described as “thrilling” and is expected to continue growing in the coming year.
By actively engaging with forward leaders, participating in sales calls, and attending regional events, the reverse mortgage division at NAF is fostering strong relationships and driving opportunities for partnership. Through presentations and discussions at these events, they aim to educate loan officers on the benefits of reverse mortgages and how they can work together to serve their clients more effectively.