A reverse mortgage specialist is someone who works with a very specific financial instrument who is very detailed about the details, which usually results in only a few dedicated professionals in the local communities. This is something that can be used as a major component of a reverse mortgage specialist’s business strategy, depending on the individual businessman’s willingness to put the time and effort into becoming an important community reverse mortgage resource.
This was announced by Ken Krajewski, vice president and head of reverse mortgage lending at 1st Nations Reverse Mortgage, based in Southfield, Michigan. Krajewski shared his thoughts on working in local communities at a recent webinar hosted by RMD, “How Local Banks Can Reverse.” Referral partners in mortgage ”, which took place in June.
Become an indispensable reverse mortgage resource
The competition among reverse mortgage professionals in many local communities across the country can be small and vary depending on where someone is. Of course, larger organizations that can do things like TV ads may have an edge and attract a borrower through a call center, but in terms of an on-site business, the retail originator may find options if they leave. and use contacts in society, says Kraevsky.
“[Reverse mortgage pros] not [always] you will have a lot of competition in your area, ”he says. “There is always competition in television and marketing, but in reality [when it comes to] There are not many sellers who are solely involved in selling reverse mortgage loans, there are not many people who are actively involved in this. So I’m trying to talk to people about how to find the best or best way to build your own brand locally in your community and how you can get your business up and running pretty quickly. “
In particular, local banks can serve as the main source of local business, but this does not mean that such a route is barrier-free, says Kraevsky. However, these obstacles can be overcome if the audience at the bank demonstrates receptiveness to reverse mortgages.
“When you are trying to set up a business at local banks, I can tell you a couple of things right off the bat: in many cases, the larger banks may have some kind of barrier that prevents their sellers – their loan officers or the people in the branch – from directing the business to specialists in reverse mortgage lending, ”explains Kraevsky. “And it’s more at the macro level. If you can end up on a separate branch, often those branches create the rules themselves. They will let you in the door and they will listen to you. And once you can walk in the door and conquer that relationship, you are likely to be the only reverse mortgage resource they have. ”
Reasonable or appropriate lending
According to Kraevsky, now a hot topic in the banking world is determining what type of loan product is “reasonable or appropriate” for a particular consumer. Looking at the myriad of products that banks of all sizes offer, this could be a potential opportunity for reverse mortgage professionals, given that the variety of loan products that are most often offered directly by banks does not account for senior homeowners who could benefit the most from reverse mortgages. mortgages. He says.
“I wrote a list of loans for home borrowers and I will go through them very quickly,” Krajewski begins. “There [are loans for] first-time home buyers, undocumented / low-documentation construction loans, fixed loans, [adjustable-rate mortgages] (Weapon) [home equity lines of credit] (HELOCs), real estate loans, FHA, VA, USDA, jumbos, doctor loans, bridging loans, balloon loans and interest-only loans. This is what most banks have on the product menu. “
The general omission of a loan product that might best serve a senior homeowner naturally stands out among reverse mortgage lending professionals, Krajewski said.
“What’s interesting is that once someone becomes a senior citizen, they no longer have a product for that person, which is unfortunate,” he says. “They have a product for just about everyone except the senior homeowner. And from my point of view, anyone who comes to a local community or a national bank that is 70 years old should not leave with a 30-year fixed mortgage. ”
Pointing this to someone who works at a local bank, a branch office that sets its own rules for potential referrals, could be a source of business for a reverse mortgage lending specialist, he said. This is especially true in a community setting where the bank is highly aware of the borrower and his or her situation and wants to find something that might be appropriate for a particular situation.
“When it comes to proper, sensible, or responsible lending, I do believe that there are many people in banks who would like or would rather offer a reverse mortgage – or offer the opportunity to get a reverse mortgage elsewhere – than invest in a 30-year fixed-term loan. mortgage someone who is 75 or 80 years old, ”says Kraevsky. “And then, this is where we can come in.”
Participation is the name of the game
According to Kraevsky, a serious catalyst for someone to become this reverse mortgage resource not only for clients, but also for the banks themselves, is more visible participation in banking, real estate and mortgage organizations and associations, which are most common in society.
“What would I say to enter your door – be it local or national banks – the easiest way is to take part in real estate events and associations,” advises Kraevsky. “Whether it’s the local association of realtors, the Mortgage Bankers Association, or the Mortgage Brokers Association, there are larger and smaller associations in and around your area. And I can confidently say that in most of them you will be the only person with a reverse mortgage. “
Even when it comes to such events, Krajewski said, there will be relatively few reverse mortgage professionals.
“The idea of getting to an Association of Mortgage Brokers or Association of Bankers event and becoming anything from a forward mortgage specialist to an insurance representative, a title agent, these events are saturated with these providers,” says Krajewski. “And when it comes to selling or talking about a reverse mortgage, you’re probably the only person doing it. And if you’re not the only one, you’re probably one of the two. “
According to him, having this specialty can help in further attracting people to such an event, whether it is due to curiosity about a product, interest or even education.
“There is something about reverse mortgages that I think people find interesting and even a little fun,” he says. “They have an idea of how it works, but they are usually not quite as accurate as they first explain it. And then by explaining it, you show them its value and show them why it matters. “