Posted by Delta_CA on 7/11/06 8:16pm
Msg #132506

What's up with reverse mortgages?

I would like to get into them. I hear that they are the wave of the future since the baby boomers are getting OLD.

Reply by Stamper_WI on 7/11/06 8:20pm
Msg #132509

HEY! Define old n/m

Reply by Delta_CA on 7/11/06 8:25pm
Msg #132512

Re: HEY! Define old

Well, 61(those born in 1945) and so forth. I'm part of that phenomenon. I'm 59 and almost dead.

Reply by Sylvia_FL on 7/11/06 9:26pm
Msg #132529

Re: HEY! Define old

62 is the age when you can get a reverse mortgage (and I don't consider that old - life begins at 40 so at 62 you are only 22 )

Reply by BarbaraL_CA on 7/11/06 10:06pm
Msg #132547

Re: HEY! Define old

I'll be 62 next month and there is no way I would want to be 22 again!
And... I think each year gets better and better - even if they do go faster and faster it seems

Reply by Sylvia_FL on 7/11/06 11:06pm
Msg #132574

Re: HEY! Define old

My body would love to be 22 again

Reply by Becca_FL on 7/11/06 11:12pm
Msg #132577

60 IS the new 40, don't you know. ;-) n/m

Reply by TitleGalCA on 7/11/06 10:06pm
Msg #132549

I think they are too, Delta

The wave of the future. The Baby Boomers are the largest economic force in this country for at least the next 20 years. They are huge, and watch (well...it's already happening) all major industries...lenders, health care practioners, insurance companies, plastic surgeon's (my personal favorite)......name your industry.

It IS all about the Baby Boomers. The drive the market and will for many more years.

After that...all those parents in the 70's and 80's took the advice of the doomsday folk of the time and took birth control. The population will be top heavy with the older ones on the top and the younger ones doing their best to support the load. My two children will be supporting a whole passel of those parents.

Reply by BobbiCT on 7/12/06 6:57am
Msg #132639

Reverse Mortgages Requires EQUITY in home ...

Today's reverse mortgages are based on homeowners over 65 who have a great deal of equity in their home. They are taking that equity out to live on.

Will "today's baby boomers" who are refinancing at 80% LTV with a 20%+ HELOC or second mortgage have enough equity remaining in their home in 15-20 years to make use of a reverse mortgage .... or will they sell the home and downsize? Of course, they must also gamble on their home increasing in value.

Reverse mortgages are for today's over 65 homeowner with no mortgage or a very little balance on an existing mortgage. I personally don't see them as an income-producing wave of the future. Of course, the borrowers I see are taking 100% equity and spending it now. Maybe there are 50+ somethings who aren't refinancing and saving the equity in their home for retirement.

Not to discourage anyone. Like the refinance boom of 2003, the boom in HECMs may be here this year and gone in two years. Keep your income producing fingers in many pies.

Reply by BrendaTx on 7/12/06 8:28am
Msg #132645

Re: Reverse Mortgages Requires EQUITY in home ...

BobbiCT is correct. The HECM and the Home Keepers are my best producers here, however, boomers will not really be able to tap into the equity unless they *have* equity in their home.

There is no magic bullet for success in this business and those who got into it without studying the demand for services in their area will be disappointed. I say this because they probably do not know how to look for loans, land transactions, and other points of service for the mobile notary / loan signing agent.

When I came into it three years ago I realized that the interest rate was going to climb, and that the situation would not be a high tide to ride, especially in Texas where you are limited somewhat in the amount of types of transactions which can be done by the notary.

How many homes are built in your area each month/year? Who is building them? Where are they closing?

How many homes sold? (Probably the title company will close these.)

How many home improvements? (Can they all be handled by the notary loan signer?)

How many loans are refinanced each month? (Watch that there is a descending number month to month.)

How many helocs are there?

How many homes owned by senior citizens are available to do rev morts on. In my county, there are approximately 5500-6000 homes owned by seniors.

You CAN find this information out.


Bobbi says not to "discourage" anyone, but I discourage anyone who is not willing to go do a little research to find out how much deed record research, property tax rolls, demographics and data research.

You'll be looking around soon for additional income because the refi boom is O V E R. Think out of the box...you cannot bury your head in the sand.

In many of the less active areas, those who will not "starve" if there are not any loan appointments are the ones who will be here in another year.

Reply by Nestle/CA on 8/3/06 5:20pm
Msg #136884

Re: Reverse Mortgages Requires EQUITY in home ...

I am curious about these because I was contacted by a mortgage company who claimed the same thing, that these are the 'wave of the future'. They were looking to hire notaries in my area as 'loan assistants' due to their high demand and the fact that we are familiar with loan documents. However, the requirement for a loan assistant goes against what notary law states. They require that a loan assistant take docs to the borrower and inform them of the contents of the docs and have them sign it, but not in the capacity of a notary.

I am leery for two reasons: one would have to pay up to $700 for training and because of the conflict with the notary laws.

However, I have seen posts from realtors and loan consultants stating that they are also notaries, so I am puzzled as to how others are able to do juggle both fields without treading on notary laws.

Thanks in advance to all who respond and have a great afternoon!

Reply by BrendaTx on 8/3/06 5:47pm
Msg #136888

Re: Reverse Mortgages Requires EQUITY in home ...

**$700 for training and because of the conflict with the notary laws.**

$700 for training? That is very interesting. The notary pays for that, huh? Red flag.

"Loan Assistant" needs all that training to *explain* the docs? Hmmm...I can see this IF there were a notary in addition to a loan assistant. I am not even sure that the Loan Assistant could not act as the notary, if the LA was trained to clearly understand the loan.

I don't know what the law says about that, but I do know that many LOs close their own loans.

Comments anyone?

Reply by Michele Cogburn on 7/12/06 6:13am
Msg #132633

I did one several months ago. The hardest thing was that the client was in her 80's and had difficulty reading the small print ( I had to read to her), she was slow (not a complaint, you need to know that this is not a rush job), she was Russian and spoke broken English and wanted me to EXPLAIN to her what to do. Her daughter stepped in once I explained that I could not interpret or tell her what she should do.

Total time three hours.