Preserving Senior Wealth and Health with Reverse Mortgage
On the heels of the last economic rebound came this year’s untimely pandemic outbreak. The remnants of its impact will surely take years to measure, but its universal effect was felt immediately. A call to public health and safety prompted a substantial and abrupt earning shift across the employment board, and as Covid-19 has maintained its stronghold, the financial wellbeing of millions has been under serious threat.
Historically, sudden economic collapses have negatively affected the majority and benefitted few, but this recent plunge has given rise to a mixed outcome. A full economic recovery is projected to take years—or even decades—to see realized, but it’s actually more nuanced. The extent of income loss and its impact seem dependent upon a person’s professional field. While various industries have yielded increased bottom lines, others have ceased to operate entirely—leaving millions without jobs. The uncertainty has been, for so many, deeply unsettling...
With such a life-altering economic event, we can’t swiftly predict what will follow. All we can do is hope for the best, but anticipate the historical trends: job losses, rising debts, declining credit scores, and limited access to resources needed most. Traditional loan options are often cut way back—and as it goes, the financially weak tend to suffer the most.
When That ‘Rainy Day’ Arrives
Our overnight setback took hostage society’s most vulnerable—our senior community. Although the semi- or fully retired might’ve planned for potential financial droughts ahead, it would’ve been difficult to foresee this particular dry spell. Quick to emerge was a serious health crisis, and even quicker was the need for an intense financial reassessment. Caught up in the tricky middle of it all has been our elderly, confronted with tangible threats on two essential fronts—their protection of health and preservation of wealth stand toe-to-toe.
Many still employed and aged 65 or older have also been met with a no-win situation: report to work while susceptible to a deadly virus or shelter yourself into an imminent lost wages’ deficit. With traditional LOC options waning and finances strained, we can imagine the gravity of the presented predicament. Retirees cannot afford to take a ‘wait and see’ approach to their financial futures. The allotment of precious time to yet another hopeful economic rebound just isn’t practical.
The Tide Shift Toward Reverse Mortgage
Whether a senior has well-managed their retirement or not, home equity should be regarded as a solid Plan B. Many have forgotten their own homes as a feasible return on their lifelong investment...
There is a great deal of senior homeowners out there with substantial equity—including your senior clients. According to Forbes Council Member, Rayan Rafay, “The majority of seniors are homeowners and the many of them are mortgage-free.” The same bunch Rafay refers to are also struggling to preserve retirement funds and fear falling short. The elderly population at large is sitting upon their own sufficiency solution, yet oblivious to what’s possible—control over their shifted circumstance.
There is an evolved advantage today that wasn’t always readily available: free information and communication via technology. We have a unique ability to connect with more borrowers than ever before. Seniors seeking mortgage relief no longer need to feel uninformed nor disconnected because they have access to options. There are ways to reach and educate your senior clients without putting them at risk, whether arranged physically or virtually.
A Loan that Overcomes
Recent ventures into the fiscal unknowns has evoked a heightened interest in Reverse Mortgage. According to Reverse Mortgage Daily’s Chris Clow, “Reverse mortgage loan officers across the country are seeing a noticeable uptick in reverse mortgage business compared with levels observed in summer of 2019.” Others have reported business as “phenomenal” with anticipations to strong record closings for the year.
Now more than ever, senior borrowers are opened-up to the idea of a HECM Loan. Our recently imposed hardship has evoked a survivor-like resilience. People are searching and becoming increasingly aware of Reverse Mortgage – and the loan of ‘all resorts’ is providing a renewed safeguard, discovery and hope.
As often said, Reverse Mortgage is uniquely designed and tailored to its borrower. And like most loans, a review of a client’s income and credit is required. BUT, good news is a less than perfect record doesn’t automatically rule out a borrower. Challenged credit and payment history wouldn’t necessarily disqualify an inquiring applicant’s loan approval. An ability to maintain property charges and upkeep assures a borrower’s security and interest ultimately remain intact.
Along the same thread, the Reverse Mortgage review allows for explanations. How often do you hear that? Does your borrower have extenuating circumstances that have affected credit or payment history in the past? Maybe we can help! We understand such situations tend to arise among golden-aged borrowers, so our careful consideration is methodically applied.
Extenuating circumstances will vary from person to person, so we never want to assume who may or may not benefit from a Reverse Mortgage. Even an expected life event might produce an unexpected result, and the HECM Loan assures it’s equipped to confront and overcome myriad obstacles.
What’s Possible...
While some clients might wish to continue making mortgage payments on their homes, others won’t, and Reverse Mortgage makes either option available. While unfortunate events can and likely will occur, the security comfort is in your client’s ability to choose. There’s a multitude of borrowers who’d unquestionably benefit from a mortgage payment relief program—a way to lift their financial heaviness—and you can help! The HECM Division is committed to partnering with you to make this happen. So, whether you choose to refer in or originate your own RMs via the HECM Course Certification, we are here to support you through.
Options are Available to your aged 62+ Borrowers—consider the Reverse Mortgage most suited to your aged 62+ Borrowers:
Traditional
Eliminate Monthly Mortgage Payments
Access a portion of equity in a line of credit that grows over time
Supplement Income by converting equity to cash
HECM Refinance
Home Appreciation
Greater access to equity via higher loan limits
Rate benefits
HECM for Purchase
Purchase a new home via RM loan proceeds (down payment required)
Simplify costs by obtaining a RM while Purchasing
No Monthly Payments Required (until loan becomes due)
JUMBO/Proprietary (backed by private lending firms)
JUMBO Loan with equity access higher than federally placed lending limits
Payment elimination with loan amounts as high as $4 million+
No Mortgage Insurance Premium (MIP – not Fed insured)
Explore with your borrowers the benefits of Reverse Mortgage today. Introduce your clients to the world of HECM and all it could do. Don’t wait another day to submit your HECM Referrals/Loans—you might instantly change a senior’s life.
To learn more about Reverse Mortgage and its products, reach out to HECM411@prmg.net. We eagerly await your inquiries and partnership!