New research shows that it's not just customers that have concerns over reverse mortgages. Forward lenders are also on the fence when it comes to branching out to the reverse mortgage market. After conducting a survey of lenders who do not offer reverse mortgages, STRATMOR Group released some interesting findings.
"In survey results presented earlier this month at ReverseVision’s UserCon in San Diego, a number of forward mortgage lenders ranked four primary reasons why their companies do not offer reverse mortgages," according to Reverse Mortgage Daily.
"Reputation risk was ranked highest among them, followed by the possible distraction that reverse lending would create for the forward-dominated businesses."
With continuous regulation and changes to the mortgage world, particularly when it comes to reverse mortgages, lenders are worried that their reputations could be at stake, should they offer reverse mortgages.
Jim Cameron, a STRATMOR Group senior partner believes that reputation risk could improve with recent product changes, according to the report. Meanwhile, Cameron understands the idea of sticking to what you know/do best, however, branching out can be a much more strategic move for years down the line.
To learn more about the cautions and reserves that forward lending companies have when it comes to entering the reverse mortgage market, click on the image above.