Wednesday, April 29, 2009

13 Reasons Why Reverse Mortgages Just May Be The Perfect Marketing Niche

For most of us, our mortgage pipelines are in dire need of some good solid loan business. If you fall in this category, it may be time to evaluate the business opportunities that await you in the Reverse Mortgage marketplace.

If you've been paying attention at all, you probably know that the projected potential of the Reverse Mortgage market is absolutely staggering. As you probably know...The Department of Housing and Urban Development (HUD) refers to a Reverse Mortgage as a HECM, which stands for Home Equity Conversion Mortgage.

When you do your review and evaluation of this growing niche, be sure to take into account these thirteen (13) facts and how they can impact your mortgage future:

1. It is estimated that between 9,500 to 12,000 people a day turn 62 years of age and if they are home owners, eligible for a Reverse Mortgage.

2. Seniors that are 62 years of age and older (our definition of a senior for this discussion), control more than three quarters of our nation's wealth.

3. They are living longer and continue to be more active than any generation before them. They, like many of us...continue to have goals, aspirations, desires and even problems...that they would love to solve.

4. They have equity in their homes but don,t have a clue how to convert their equity (non-liquid asset) into spendable and useable cash (a liquid asset).

5. Originations of Reverse Mortgages have increased 109% for the past few years. In fact, each year for the past 5 years the number of loans has doubled each year.

6. FHA endorsed 10,026 reverse mortgages in June alone, bringing the year-to-date total to 83,871. By comparison, FHA insured 8,925 loans in June 2007 totaling 80,425.

7. Its estimated that there are now 75 million prospects that would benefit from this type of program and that number continues to grow every day.

8. Less than one quarter of all Mortgage Companies currently offer the Reverse Mortgage product. Now is the time to market Reverse Mortgages while competition is minimal.

9. Recognizing our current credit crisis and the problems we have funding our normal forward based and credit scoring models are not used with the Reverse Mortgage product. The benefits received are based on age and equity.

10. The Reverse Mortgage product is a Federal Housing Authority (FHA) insured non-recourse loan and subject to FHA loan limits.

11. Recent surveys of Reverse Mortgage holders indicate more than a 95% satisfaction rate of the product.

12. There have been drastic improvements since the first Reverse Mortgage was written in 1989 and, the number of Lenders has increased.

13. Effective January 1st, 2009, the HECM Purchase Program is now operational, allowing Seniors to purchase a primary resident.

On the surface you may feel that a Reverse Mortgage could be the easiest type of loan you could ever originate. After all...there is no Credit Qualification, no Income Verification, and best of all...your commission is generally based on the value of the home...not the loan amount.

But please remember...a marketing niche is only as good as the dedication, knowledge, expertise, and professionalism you are willing to bring to bear on the marketplace.

Yes...working with Seniors can and will prove to be extremely profitable. Plus...You will also get personal satisfaction and gratification as a result of your efforts.

If your current organization or situation does not allow you to originate Reverse Mortgages, you need to either be the catalyst to change that...or, find a home that does allow you to market to Seniors.

You can become very successful by dedicating yourself to Reverse Mortgages and the Senior market. If you prepare yourself and your marketing program well, you can get ready to explode your Mortgage Business.

About the Author

Tom Domin is a contributing author to The Reverse Mortgage Mentor membership training site. Put your mortgage production back-on-track with the very best Reverse Mortgage marketing training. Sign-up for our $1.00 ten (10) day trial membership at

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