My background is in teaching. Not sales.
Perhaps this explains why I freak when someone describes reverse mortgage lending in terms of a “sales position.” A reverse mortgage is either a fit or it’s not. It’s part of a long-term solution to financial challenges of increasing longevity – not a product that creates dreamy strolls down sandy beaches.
I seem to have a pretty standard response to salesmen – namely “yuck.” I associate pushiness, perhaps a poor match between the need of the client and the item being sold, and scare tactics – or at least a sense of urgency: “AND…if you order before midnight tonight….” Like I said, “yuck.”
THIS BEING SAID…
Tuesday HUD announced changes to the FHA Reverse Mortgage Program. There will be many changes, with perhaps more yet to come. But basically, it boils down to this: if you, or someone you know – or someone you’re working with – has been considering a reverse mortgage, now is the time to move forward.
Because on September 30, 2013 the program is going to change dramatically.
And before that deadline, the prospective borrower must get their mandatory counseling, fill out an application, and have an FHA case number assigned. Under normal conditions this takes about ten days. With a last minute rush, there is going to be a shortage of available counselors.
Let me be clear: reverse mortgage is not going away. In fact, both Congress and the FHA have reasserted their support for reverse mortgages. However, the amount the homeowner can receive is being cut back significantly.
SOOO…As weird as this sounds coming from me, now is the time. If your client, colleague, neighbor, your relative or your friend has ever considered a reverse mortgage, the window on the Standard reverse mortgage – the product that creates the largest cash reserve – is rapidly closing.
Give me a call and let’s talk.
Laurie MacNaughton [NMLS# 506562] · Reverse Mortgage Consultant, President’s Club · Middleburg Mortgage, a Division of Middleburg Bank · 20937 Ashburn Road, Suite 115 ·Ashburn, Virginia 20147 · 703-477-1183 Direct · LMacNaughton@MiddleburgBank.com