Archive for the ‘Reverse Mortgage’ Category

Reverse Mortgage Counseling!

Tuesday, August 23rd, 2011

Question: I’ve heard there’s some sort of counseling involved with Reverse Mortgages. How does that work?

Answer: Until recently, HUD required homeowners to attend a mandatory counseling session and it was paid for with a grant provided by HUD. The counseling session ensures homeowners are comfortable with how Reverse Mortgages work and also reviews alternative options. The session is still required, but HUD doesn’t pay for it anymore. On October 29, 2007, a new FHA rule was implemented and borrowers and/or lenders are responsible for paying for the counseling session. However, it’s unclear as to how the program will be implemented, and we’re all waiting for an updated Mortgagee letter to be issued that explains the details.

Until the new letter is issued, the various HUD counseling agencies are implementing their own procedures. Some agencies don’t charge any fees yet, and some charge fees to the Lenders. Some agencies offer a selection and have a no-fee program and a fee-based program. If the homeowner uses the no-fee program, they have to wait 2-3 weeks before they receive counseling. To get the Lender to pay the counseling cost, the counseling agency is asking the homeowner for the Lender ID number of the Reverse Mortgage Lender they’ve chosen. If they don’t have that number, the agencies are telling them they’ll have to wait several weeks before receiving counseling. HUD says it’s absolutely impermissible for Counseling Agencies to treat homeowners like that.

The agencies should schedule all homeowners on a first-come-first-serve basis and are not to give preferential treatment to homeowners that are already working with a Lender. If a homeowner encounters problems with scheduling counseling, they should send an email to Brian Siebenlist at HUD. Brian coordinates counseling activities and his email address is Brian.N.Siebenlist AT hud.gov. AT = @

Counseling can happen in a private room at a HUD center or via the telephone, and usually takes between 30-60 minutes, depending on how many questions the homeowner has. Everybody that’s currently on Title to the home and everybody that’s going to be on Title to the home are required to attend the session. Additionally, the homeowners Trusted Advisors are encouraged to attend the session (ie: children, Pastor, Estate Planning Attorney, etc.) Upon successful completion of the counseling session, the homeowners will receive a certificate that’s good for 6 months, and that certificate must be provided to the Lender. Upon receipt of the certificate, the Lender will combine it with the Loan Application to obtain an FHA case number from HUD.

Reverse Mortgages that aren’t insured by FHA also require counseling sessions, and the Reverse Mortgage Originator will be able to assist the homeowner with scheduling the session.

Diversification!

Monday, August 22nd, 2011

Off the topic of Direct Marketing I have been thinking of alternate ways for LOs to make money while you grind this thing out. You don’t even have to change much about what you do EXCEPT WORK A LITTLE HARDER for your potential borrowers and TURN DOWNS!!!

Think about this for a second……We are all taking more applications now than we have in the last couple years but for most it’s the qualifying the prospects that is the issue. I talk to so many Loan Officers and Brokers a like that just throw that stuff away…….WHY WOULD YOU DO THAT? Your trash is another man’s treasure and actually its a treasure to you but most just don’t know it yet.

Here is what I would be doing if I was a full time LO….

Do which ever marketing I like best and then really really WORK THE LEADS! Work the potential Refi to the bone until there is absolutely no deal there. On all the turn down leads we have all got to start helping these people. There are other ways that may require any Loan Officer to get out and network to help the homeowners in other financial ways….

I would try building relationships with other professionals in other lines of finacial services….

First- credit repair companies–I know most of them pay you a commission for the repair job and then they send you the borrower back for the loan after things are fixed. You not only go the extra mile for your client but you also make a little money on the side form the CR company.  This helps you help a client that needs it and that gives you the chance to put them in your client base for later as well as earn referrals through them.

Another example would be to learn loan modification. 9 out of 10 applications taken DO NOT qualify for a loan, so in my mind you should try and modify their loan with their current lender and make a small commission for HELPING your client. Again this was a turn down before and it could be turned into revenue and maybe even a future deal and more than likely a referral or two for another modification. (you would not believe how much home owners talk about not being able to refinance with each other) If you go the extra mile on either of these two ways or even debt settlement or something like that you will be helping home owners the same way, FINANCIALLY, and still be making money as well as building your client base for future.  Some of these companies are set up differently so finding the right one for you can be difficult.  I have done extensive research on this and if you would like information you can email me off the board for the names of the companies I would suggest using.

Sorry to go off on a rant but i see so many people complain about turn downs and lenders not lending to hardly anyone, but really they should be trying to figure out how to try and help these clients out. There is a lot of money to be made rehabbing or modifying loans as well as credit repair and settlement. START DIVERSIFYING IF YOU WANT TO LIVE AS WELL AS YOU MIGHT HAVE IN YEARS PAST IN THE INDUSTRY!  Especially considering some of the people you all run into can’t even modify because they are too far upside down.  Another GREAT way to build Realtor referrals for short sales.  You simply can’t loose if you build yourself a network of industry professionals to send your turn down and bail out deals to.  Net working has never been easier with over 95% of all home owners in need of some sort of financial service.  You area already taking the time to talk to them to find out about the refi…if you turn over just half your turn downs you not only cover part of your over head but you also build your clients for later.  We know lenders will lend again at some point.  he who has the biggest over all client base will be the one who makes the most money when this happens.

I’m in hopes this message gets at least one person motivated again, all the negativity does get overwhelming after a while and there truly is a ton of money to still me made in financial services. Lets get on it!