A reverse mortgage loan professional is someone who works with a very specific financial instrument that is very detail-oriented, which usually results in local communities having few dedicated product professionals. This is something that can be used as an important part of a reverse mortgage professional’s business strategy, depending on the willingness of a particular entrepreneur to invest the time and effort to become an important reverse mortgage resource in a local community.
According to Ken Krajewski, VP and Head of Reverse Mortgage at 1st Nations Reverse Mortgage based in Southfield, Mich. Krajewski in a recent webinar hosted by RMD, “How Community Banks Can Serve as Reverse for His Insights on Working in Local Community Mortgage Referral Partners” in June.
Be an indispensable resource for reverse mortgages
Competition among reverse mortgage loan professionals in many local communities across the country can be little depending on your location. Of course, larger organizations that can advertise on television, for example, can have an advantage and attract a borrower through a call center, but in terms of local business, a retailer can find options when going out and using community contacts, Krajewski says .
“[Reverse mortgage pros] Not [always] have tremendous competition in your region, ”he says. “There’s always competition in TV and in marketing, but really [when it comes to] Salespeople who only sell reverse mortgages, there aren’t many people who are actively doing it. So what I’m trying to talk to people is to find the best, or the best way, to build a brand for yourself locally in your community and how you can get your business up and running pretty quickly. “
Community banks in particular can serve as an important source of local business, but that doesn’t mean that such a path is barrier-free, says Krajewski. However, these obstacles can be overcome if the audience at the bank shows a receptivity to a reverse mortgage.
“If you’re trying to do business from community banks, I can tell you a few things right away: Often times, larger banks have some kind of barrier that their salespeople – their loan officers or people in the industry – have to refer business to people with reverse mortgages.” , explains Krajewski. “And more on the macro level. Often times, if you can get into a single branch, those branches will make the rules themselves. They will let you through the door and they will listen to you. And once you get your foot in the door and build that relationship, you will likely be the only reverse mortgage resource you have. “
Adequate or adequate lending
A current issue in the banking world, says Krajewski, is determining what type of credit product is “appropriate or appropriate” for a particular consumer. Looking at the many products that banks of all sizes have on offer, this could be a potential opportunity for a professional reverse mortgage loan, considering the variety of loan products most commonly offered direct by banks tends to appeal to older homeowners omit who could benefit the most from a reverse mortgage. he says.
“I’ve made a list of loans that are available for private borrowers, and I’ll go through them very quickly,” Krajewski begins. “There [are loans for] First-time home buyers, home loans without Doc./Low-Doc, fixed-term loans, [adjustable-rate mortgages] (Weapons), [home equity lines of credit] (HELOCs), Home Equity Loans, FHA, VA, USDA, Jumbos, Medical Loans, Bridge Loans, Balloon Loans, and Interest Loans. Most banks have that on offer. “
The general lack of a loan product that would best serve a senior owner is of course something that a reverse mortgage professional will notice, Krajewski explains.
“The interesting thing is that once someone is a senior they no longer have a product for that person, and that’s unfortunate,” he says. “You have a product for just about everyone out there except the elderly homeowner. And from my point of view, anyone who is 70 years old and goes to a local community or national bank shouldn’t go out with a 30-year fixed-rate mortgage. “
Pointing this out to someone who works at a local bank in particular, at a branch that sets its own rules for potential referrals, could prove to be a source of business for a reverse mortgage loan professional, he says. This is especially true in an environment where a bank knows the borrower and their situation well and wants to find something that might be right for a particular situation.
“When it comes to decent, sensible, or responsible lending, I believe there are a lot of people in banks who would like to offer a reverse mortgage or would rather offer a reverse mortgage – or offer an option to get a reverse mortgage elsewhere – than – take someone into a 30-year fixed-rate mortgage at the age of 75 or 80, ”says Krajewski. “And that’s where we can come into play.”
Participation is the be-all and end-all
A major catalyst for someone becoming a reverse mortgage resource not only for the customers but also for the banks themselves is to get more visibly involved with the banking, real estate, and mortgage organizations and associations that operate in the community are most widespread, says Krajewski.
“What I would say to get a foot in the door – be it with municipal banks or even with national banks – is a simple matter of getting involved in broker events and getting involved in associations,” advises Krajewski. “Whether it’s the local brokerage association, the mortgage bankers association, or the mortgage brokerage association, there are larger and smaller associations in and around your area. And I can say with confidence that in most cases you will be the only person with a reverse mortgage. “
Even when it comes to association events like this, reverse mortgage professionals are likely still relatively few and far between, says Krajewski.
“The idea of going to a mortgage brokerage association or bankers association event and being everything from the forward mortgage loan officer to the insurance agent or title agent, those events are saturated with those vendors,” says Krajewski. “And when it comes to selling reverse mortgages, or talking about reverse mortgages, you will likely be the only person who does that. And if you’re not the only one, you’re probably one of two. “
This specialty could help keep people involved at such an event, be it out of product curiosity, interest, or even education, he says.
“There’s something about reverse mortgages that I think people find interesting, and even a little intriguing,” he says. “You have an idea of how it works, but it’s usually not exactly how you first explain it. And then as you explain it, you show them its value and you show them why it matters. “