LO's Target Renters Nearing Retirement for Reverse Mortgage Potential
Loan originators are looking at a new target for reverse mortgage potential according to a recent report. Renters, who are "test driving" retirement look to be a prime market for the product.
"Best Rate Referrals reported that Home Equity Conversion Mortgage lenders were receiving an increase in interest from renters, who by definition could not qualify for a reverse mortgage outside of potentially using the product to purchase a home," according to Reverse Mortgager Daily.
"The report was based on inquiries from consumers, all with at least fair credit scores, looking to be paired with mortgage lenders."
Of course, those who are interested in the product need additional education on the product. However, the report revealed that plenty of lenders left the market when added restrictions were placed on them as changes were made to the program.
As lenders left the product behind they also cleared reverse mortgage educational tools for borrowers off of their websites. Without any further information on the product, some lenders saw an increase in inquiries for the product from seniors who are looking to rent in a prospective area for retirement.
"While they decide where they might like to live long-term in Florida, seniors rent. By the time they pick where they want to settle, they are immediately ready to buy," according to the RMD report.
To learn more about how these seniors can benefit from reverse mortgage education and how lenders can benefit from targeting the renters market, click on the image above.