Credit Unions are Taking
a Closer Look
at HECM Programs:
Banks and Credit Unions put a lot of effort into getting and retaining customers. With a trend towards the massive unbundling of financial services, now is the time for banks and credit unions to look at how HECMs can assist their aging clients. Make sure your customers stay under your company’s umbrella of products and services by offering all options.
With 100 million baby boomers aged 50+, what better way to gain trust with your senior members then to educate them on retirement resources to help them “Age in Place”. 10,000 potential borrowers turn 62 daily, the qualifying age for a HECM. While most banks and credit unions focus on millennials, this cash-poor, house-rich demographic is being overlooked and most could truly benefit from HECM programs.
New regulations have created an environment where a HECM is much more of a retirement product as opposed to a “loan of last resort.” Whether in place of a HELOC, or to supplement monthly cash flow, financial planners are beginning to model the performance of a HECM in an overall retirement strategy. Many of today’s retirees are equity heavy with the rebound in the housing market, yet the financial crisis of the past 10 years have left their 401k’s and other retirement resource lacking. At a recent banking conference in Austin, Jennifer Tescher, President of CFSI, stated that based on their research “27% of Americans have saved less than $1,000 for retirement.”
Additionally, Immersion Insights stated two interesting facts:
- “On average, pre-retirees start saving for retirement at age 35, 27% say they won’t have the income they need to live comfortably in retirement.”
- “The last of the baby boomers turned 50 in 2014 and there are currently over 100 million adults in the United States over the age of 50.”
HECM programs are FHA insured, making them a safe and secure product that is performing well in secondary markets. Are you overlooking a potential source of revenue?
are Adding HECM
Products to their
With the forward market being challenged by regulatory issues, decrease refi and weak purchase volume, the Reverse Mortgage space offers you a virtual end-to-end housing product lifeline. With an already existing database of customers who trusted you with their home purchase, forward lenders who actively mine their database for prospective reverse borrowers are showing fast revenue growth.
Over 800 brokers and lenders joined the ReverseVision Exchange in 2014, with even more expected in 2015. Don’t miss out on this growth opportunity. With the last of the HUD changes implemented in the first half of 2015, this product has never been safer for the borrower or lender.
The average commission for an LO on a HECM can be drastically higher than on a forward loan. Offer training thru Reverse Vision University for your LO’s on a new product with higher commissions is a way to retain loyalty, motivate and increase volume.
Get the Facts about HECMs:
The Home Equity Conversion Mortgage (HECM) product has had some negative attention in the past, but HUD has addressed all of the “big risks” associated with HECMS over the past two years. HECM programs are safer than ever.
The 3 key areas that caused the most concern were: Lump Sum Payout, Non-Borrowing Spouse guidelines and Tax & Insurance default. HUD has made changes to the HECM loan program resolving each of these issues—most recently with Financial Assessment. These key changes are sure to help seniors and lenders use the HECM programs for its best purpose, allowing seniors to “age in place.”
Download our whitepaper and learn why HECMs are a great tool for financial planning and retirement.
Leverage ReverseVision’s RV University for marketing material
and create a survey or marketing piece to determine
your membership interest level on HECM programs.
Invite bank or credit union members to a session hosted by you
to learn if this type of loan is an option. As an unbiased
software provider (not a lender), ReverseVision experts
will provide attendees with the facts of the loan,
the getting-started process and the basic fee structure.
in the U.S. to provide leading reverse mortgage technology to brokers, correspondents,
lenders and investors. 90% of all wholesale lenders use our industry-leading
reverse mortgage software, RV Exchange (RVX).
Check out our list of partners.
ReverseVision is recognized as a driving innovator in the reverse mortgage industry
and its reputation is expanding, along with the opportunities offered by reverse mortgages,
into the world of traditional mortgage lending. Whether a lender wants to integrate
a proprietary loan, set up a correspondent network or connect with a wholesale lender,
ReverseVision is the only solution with the best expertise, connections and technology.