Can Lenders Grow With HECM For Purchase?
Success through HECM for Purchase Loans has been documented with loan counts for the product coming in at 7% of the volume for the industry. It can be a tool used by lenders to foster growth and a recent Reverse Mortgage Daily piece highlights how one lender is having added success, with 30% of its volume coming from HECM for Purchase loans.
"In terms of its employment of HECM for Purchase in comparison with the larger reverse mortgage industry, VIP Mortgage has a demonstrably higher percentage of H4P transactions when compared with other entities," according to RMD.
"Nearly a third of the loans they’ve completed in 2019, 28% in total, have been H4P transactions, based on data shared with RMD by Reverse Market Insight (RMI). This figure is four times higher than the industry average, which sits at just 7%."
The article also states that VIP has benefitted greatly from using informational programs with partners to help discover the full extent that HECM for Purchase could help grow its business.
"Counseling these partners through lunch-and-learns and continuing education classes have given us the exposure to help educate these referral partners to understand there is a strategic reason for purchasing a home with a reverse mortgage," said Tim Nelson, the head of VIP’s reverse mortgage division.
To learn more about VIP's success and the overall success that is possible with HECM for Purchase Loans, click on the image above.
