Homequitys New Reverse Mortgage Certification Program
As reverse mortgages become more mainstream, it will become increasingly important for mortgage brokers to master their intricacies. To assist in that, HomEquity Bank has launched a new reverse mortgage certification.
The Mortgage Broker Direct program is a no-fee certification process that provides approved brokers with:
- a professional designation as a Certified Reverse Mortgage Specialist
- 2.5 continuing education credits, and
- specialized marketing support.
Certified brokers will have two products available to them: HomEquitys classic CHIP Reverse Mortgage and the Income Advantage . HomEquity Bank says more than 500 brokers have already been certified in the program, and it expects another 500 will earn the designation by the end of October.
Being a HomEquity Bank Certified Reverse Mortgage Specialist gives clients the confidence that their mortgage broker is presenting all options to them, said Fiona Campbell, Partnership Director, HomEquity Bank. Other potential options include HELOCs, taking on a renter, asset liquidation and/or downsizing, but each of these has their own pros and cons.
HomEquity has been slowly but surely increasing its market penetration. Earlier this year it increased its maximum loan-to-value on reverse mortgages to 55%, and in some cases slightly more. This latest initiative should further pad the companys annual originations, which rose 23% to $309 million in 2014.
How To Become A Certified Mortgage Planning Specialist
The subprime mortgage crisis of 2008 has made it harder than ever for many loan officers to make a living. Although the elimination of the entire subprime market has been partially offset by the drop in interest rates, the level of compensation for many originators has dropped substantially from what it was a few years ago.
Loan officers have therefore had to think up new ways to service their customers and still make a profit. One option they may want to consider is to become a Certified Mortgage Planning Specialist .
Guidance Reverse Mortgage Lending For Banks Credit Unions And Lenders
|M.G. L. c. 171, §65|
In the Commonwealth, reverse mortgage loans must be made in accordance with programs which have been reviewed and approved by the Commissioner of Banks. Reverse mortgage loan programs submitted to the Division for approval must meet the requirements of M.G.L. c. 167E, §7. This provision applies to Massachusetts state-chartered banks and all other mortgagees pursuant to M.G.L. c. 183, §67. Massachusetts state-chartered credit unions seeking to make reverse mortgage loans must request approval of a program meeting the requirements set forth in M.G. L. c. 171, §65.
We Love Our Clients Retirement Success
Debbie chose to do a reverse mortgage with a small line of credit of $23,000. That meant the $2000 per month house payment went away immediately. She liked her job and thought she could count on working there another 5 years. Since she only needed $400 per month to set aside for taxes and insurance now, she could maximize the catch up allowance on her 401K. That would conservatively allow the 401K balance to hit $300,000, by the time she retired. Meanwhile, at an assumed 5% average return, the $200,000 her husband left should grow to just over $268,000.
Reverse Mortgages can supplement income & Homeowner remains in title to their home. NO monthly mortgage payments, can stay in your home as long as you are able.
WE CAN LEND IN ALL 50 STATES!
You’re In Control With A Reverse Mortgage
You worked hard to become a homeowner, and its important to us that we keep it that way. With a Canadian Reverse Mortgage, you always maintain control of your home*. In other words, you will never be forced to sell or move as a result of changing home values or earning power . And we guarantee the amount that you or your estate eventually has to repay will never exceed the fair market value of your home at the time it is sold*. Theres no reason your home should ever be a burden to you or your family.
If your home goes up in value, the appreciation is all yours. Simply maintain your property and pay the taxes and insurance. When you retire, you shouldnt have to give up the home you love.
What To Consider When Talking With Originators
What to Consider When Talking With Reverse Mortgage Originators
Although the basic terms and fees of the FHA, proprietary , and other reverse mortgage programs are essentially identical regardless of the originator*, there is a difference in originators with their expertise, knowledge and experience with reverse mortgages along with the customer service they provide. *also referred to as Loan Officer, Reverse Mortgage Specialist, Reverse Mortgage Advisor or Reverse Mortgage Consultant
Things to consider when talking with Reverse Mortgage originator:
- How much experience does the Originator have with reverse mortgages ?
- Work with experienced reverse mortgage originators who specialize in reverse mortgages. Ask how many years they have been originating and if/what training they have received with reverse mortgages. You can check their experience at the the National Mortgage Licensing System under Consumer Access, just enter their name or license number.
- Work with someone who has the designation of a Certified Reverse Mortgage Professional . CRMPs have demonstrated their knowledge and competency in the area of reverse mortgage lending, and are dedicated to upholding high standards of ethical and professional practices.
- Do they assist you in determining which program is most suitable for your needs?
- Experienced originators should discuss the various programs and help you to assess the program most suitable for your needs.
How To Become A Reverse Mortgage Counselor
Reverse mortgages provide retired borrowers receiving social security a mortgage option that uses the equity in their home to pay them each month without requiring a mortgage payment. FHA controls and insures this complicated program. FHA guarantees borrowers will never face foreclosure or be required to make any mortgage payments. FHA structures these loans so the homeowner can receive equity payments each month, or have a line of credit available. Reverse mortgage counselors must a meet a series of HUD requirements prior to advising potential homeowners of this program.
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How To Become A Reverse Mortgage Broker
This article was co-authored by Michael R. Lewis. Michael R. Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. He has over 40 years of experience in business and finance, including as a Vice President for Blue Cross Blue Shield of Texas. He has a BBA in Industrial Management from the University of Texas at Austin.There are 23 references cited in this article, which can be found at the bottom of the page. This article has been viewed 30,411 times.
One of the newest forms of mortgage modification processes is turning a classic mortgage into a reverse mortgage. This kind of financial planning tool allows those with equity in a home or other property to start taking that equity out in the form of available funds. Unlike a traditional mortgage that allows a homeowner to buy a home by making payments on the loan over time, a reverse mortgage is a loan that can provide a homeowner with funds against the value of his or her property.XTrustworthy SourceUS Consumer Financial Protection BureauU.S. government agency for protecting consumers in the financial sectorGo to sourceThese mortgages are for older homeowners, and allow them to defer payments until they die, sell, or move out of the home. Since many retirement age homeowners are interested in reverse mortgages, becoming a reverse mortgage broker may be a good career choice for you.
How To Become A Mortgage Loan Specialist
The qualifications you need to pursue a career as a mortgage loan specialist or loan officer include education in finance or business and licensure in your state. To earn licensure, you must complete a pre-licensure educational program. Knowledge of federal and state laws, ethics, and mortgage basics is crucial for a mortgage loan specialist career. You need excellent communication skills, critical thinking abilities, and up to date familiarity with mortgage trends and options. This job requires collaboration with other financial and bank specialists and direct interaction with clients, so customer service and communication skills are a must.
What Are Reverse Mortgage Jobs
Reverse mortgage jobs include loan officers and sales representatives who work with clients interested in a reverse mortgage loan that allows for borrowing against the equity they built in their home. The responsibilities of a loan officer include assisting borrowers with their application, obtaining all necessary information and paperwork to process the application, and determining lending eligibility based on credit, risk, and other factors. The duties of a sales representative for reverse mortgages is to identify potential borrower leads, market and sell reverse mortgages to customers, and continue building a relationship with a customer base.
Qualifications For A Reverse Mortgage Loan:
- You are 62 years of age or older
- You own your home and use it as your primary residence
- The house is single family, multi-family or an approved condominium or manufactured home
- You own your own home free and clear or have a small amount left to pay on the existing mortgage
- Your home is in good condition prior to taking out the loan
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Turn Home Equity Into Cash
Theres no retirement like home. If youre like most Canadian homeowners 55 or over, much of what you own fits into one of two categories the equity in your home and the money you have saved. Chances are, the value of your home has grown over the years and makes up a good portion of your net worth. While having a home that has built value is a positive, you typically cant spend that value unless you sell your home. A Reverse Mortgage allows you to turn some of your home equity into tax-free cash. You can get up to 55%* of its value. It also ensures you have access to that cash whenever you want it. Youll maintain ownership and control of your home without the obligation to make regular mortgage payments until you move or sell.
How To Be An Approved Hecm Counselor
Attend an FHA approved training course related to HECM counseling in the past two years. Eligibility requires successfully completing at least one training course in the past two years. FHA’s website maintains a list of training sites .
Pass the national HECM Counseling exam. FHA has partnered with the Neighborworks center for homeowner education and counseling to administer the exam. Applicants can register study and take the exam online . As of June 2010, the exam fee is $100.
Obtain employment with a HUD approved housing counseling agency. All counselors must work for a HUD approved company.Visit HUD’s website for a list of HECM counseling agencies .
Once you become a counselor HUD requires continuing education and passing the HECM exam every two years.
Applicants who are on any of the following lists are not eligible to be HECM counselors: General Services Administrations Excluded Parties List System , HUDs Limited Denial of Participation List , or HUDs Credit Alert Interactive Voice Response System .
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Why Earn This Designation
Loan originators who wish to distinguish themselves from the competition should seriously consider earning this credential. The CMPS designation offers many benefits to loan professionals, including:
- Competence. The CMPS mark offers tangible proof that the designee has the knowledge and training to help clients achieve their goals.
- Value. Loan professionals who carry the CMPS designation are more attractive to employers, and may command higher compensation.
- Accountability. CMPS designees are bound by a strict code of ethics that is enforced by the CMPS Institute. This additional accountability may be seen as a benefit to prospects and clients.
- Transparency. Clients and prospects can check with the CMPS Institute for an informational background on a designee.
- Professional Resources. Designees have access to training modules covering a wide variety of topics on the CMPS website. They can receive coaching on a daily or weekly basis as well as assistance with sales, marketing, compliance, and other key issues that affect their business and the industry.
- Increased Income. CMPS designees can often justify charging higher origination fees than their competitors because of the value that they can offer their clients. The CMPS Institute also trains its students in how to effectively prospect for investment property loans and lucrative commercial deals.
Let Your Home Take Care Of You With A Reverse Mortgage/ Home Equity Conversion Mortgage
Reverse mortgages were created specifically for senior homeowners, allowing them to make the most of the equity they have acquired in their homes.
With a reverse mortgage, you borrow against the equity you have established in your home and do not need to repay the loan for as long as you live in the home as your primary residence, maintain your home in good condition, and pay property taxes and insurance. You can live in your home and enjoy making no monthly principal and interest mortgage payments.
Depending on your financial situation, a reverse mortgage has the potential to help you stay in your home and still meet your financial obligations.
We realize that reverse mortgages may not be right for everyone, give us a call so we can help walk you through the process and answer any questions you may have.
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Become A Hud Certified Housing Counselor
- Provides housing counseling services to families and individuals
- Provides administration and oversight of homeownership counseling and rental counseling
- Administers the HUD approval process to become a HUD-approved housing counseling agency
- Administers the approval process to become a certified HUD Housing Counselor
The HUD Housing Counseling Program supports the delivery of a wide variety of housing counseling services to homebuyers, homeowners, low- to moderate-income renters, and the homeless. The primary objectives of the Program are to improve financial literacy, expand homeownership opportunities, improve access to affordable housing, and preserve homeownership.
To provide housing counseling services through HUD Programs, individuals must certify through HUD by way of passing a new written examinationThe HUD Housing Counseling Certification Examinationand verifying employment at a Housing Counseling Agency.
Refer to the HUD Exchange for more information about the HUD Housing Counseling Program.
How Much A Reverse Mortgage Can Cost
Costs associated with a reverse mortgage may include:
- a higher interest rate than for a traditional mortgage
- a home appraisal fee
- a prepayment penalty if you pay off your reverse mortgage before it is due
- legal fees for closing costs or independent legal advice
The costs will vary depending on your lender. Some fees may be added to the balance of your loan. You may have to pay for others up front.
To Qualify For A Reverse Mortgage In Canada The Following Factors Are Assessed:
- You and your spouse’s age
- Location of your home
- Type of home
- Appraised value of your home
- The condition of your home
- Your home equity
The Reverse Mortgage Facts You Need to Know!
Read about the pros and cons of a reverse mortgage to see if it is right for you.
In 2 minutes find out how you can qualify for tax-free cash with the CHIP Reverse Mortgage® and get your FREE guide today!
Ourreverse Mortgage Wholesale Broker Or Third Party Originator Program Gives You Access To:
- Premier product mix, including competitive pricing and rates
- Unwavering commitment to client focus, integrity, teamwork, respect and innovation
- Dedicated team of experienced Reverse Mortgage and secondary market experts
- Best-in-class operational support and underwriting services
- Customized training based on your experience level
- Scalable options to fit your needs
- Customizable sales and marketing material
- Extensive training
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How To Become A Reverse Mortgage Specialist
ByAlfred Ardis | Submitted On January 12, 2016
There are many ways to help someone obtain a loan by using the equity they already have in their home. As a reverse mortgage specialist, it is your job to help eligible customers navigate the waters and obtain their monthly stipend. However, you have a couple of options as to how you’ll pursue this career venture.
The first way you can become a reverse mortgage specialist is as a broker. You do not have to broker other home loans. You can specialize in just this one type of finance. Unlike a traditional broker, you may not have to meet as many educational requirements. However, you need to check with your local licensing board. Each area has its own set of regulations governing who can be licensed, how long the license is good for, and what requirements they must complete. You may have to complete a training program prior to applying. In addition, many areas require you to participate in on-the-job training at a brokerage house or to work as a loan officer before processing the license application.
A reverse mortgage specialist is the person who helps qualified homeowners get the money they need without having to sell their homes. A firm understanding of the process and an enthusiastic personality can go a long way to making this a career you enjoy.
If you’re looking for a reverse mortgage specialist, consult the professionals at .