Choosing a Reverse Mortgage Loan Officer – PART III
Basics, Choosing A Lender, Fees & Costs, Reverse Mortgage Scams April 12th, 2010This is the final post of a multi-part discussion on how to select a loan officer for your reverse mortgage. Please read all sections before making your decision.
Reverse Mortgage Directory Listings
“Experts” will often recommend that you select a lender by consulting some kind of national list on the internet. Plug in your zip code, they advise, and the directory will provide a list of lenders that serve your area. This may be the simplest way to select a lender/loan officer but it may also the dumbest approach of all. Just because a lender or broker is a member of some organization does not guarantee the honesty, professionalism and character of the person who will respond. AARP does not endorse nor do they recommend any lender. They publish no list. A loan officer claiming direct endorsement is misrepresenting. NRMLA (the National Reverse Mortgage Lenders Association) does tout a list of its members by state – but these members have paid a very substantial annual fee to become members of this trade association – or lobbyist. Some of the best local brokers may not be willing to pay the annual fees charged by this group. Even HUD’s lender directory is woefully inadequate and incomplete. Finally, the internet is loaded with various other directories of “preferred lenders”. Most, if not all, are marketing gimmicks and paid referral sources.
Conclusion
Don’t choose your lender based upon price. There are too many more important issues to consider. Besides, HECM prices change from week to week until your application is actually completed… so too few seniors actually understand how to do comparison shopping correctly. (We will save that subject for the next post.) Choose your originator based upon your investigation of his/her direct experience, multiple resources and willingness to work with you face-to-face.
Rely upon other professionals (attorneys, financial planners, elder law specialists, case workers, etc.) who have had direct experience working with the best loan officers in the area. Reputation is everything… and it should be your most important consideration, too – reputation, longevity, experience, character, referral. If you choose the right loan officer, he or she will work hard with your best interests in mind… and may even suggest ways or programs to help you get more money or lower fees. If you choose the wrong loan originator, you are just whistling in the dark!
Author – Robert H. Irving, CSA®
Senior Reverse Mortgage Consultant
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April 8th, 2010 at 10:12 pm
Great article. Lots of helpful information. Almost too much to
digest in one post!!
April 8th, 2010 at 10:17 pm
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April 9th, 2010 at 12:51 am
@JSI -Thanks. Point taken. It’s a long article as I was on a roll and couldn’t stop. Your reverse mortgage loan officer should be passionate about the subject, don’t you think?
April 9th, 2010 at 8:14 am
@Cathryn – It’s always flattering to receive compliments from fellow bloggers. Thank you.