Choice of Reverse Mortgage Company Important
With the meltdown of the sub-prime mortgage industry, literally thousands of sub-prime mortgage brokers have started offering reverse mortgages. It is likely that the majority of companies selling reverse mortgages have been at it less than a year and are processing fewer than one reverse mortgage per month. Many have never written a reverse mortgage at all, ever!
Here’s what you should consider in a reverse mortgage company:
:Licensed with FHA/HUD as a reverse mortgage lender or correspondent lender?
:Licensed with the state as a reverse mortgage lender or correspondent lender?
:A member of the National Reverse Mortgage Association (NRMLA)?
:A member of the Better Business Bureau (with a clean history)?
:Exclusively in reverse mortgages or is it a sideline business for them?
:Conducting background checks on all staff? Many don’t. Do you want your private information in the hands of someone with a criminal record, or even worse, do you want them in your home?
:Offering multiple options in products and lenders? Don’t be trapped into dealing with a direct lender who only offers one or two products, whether they are a good fit for you or not. A correspondent lender can choose from several lenders and avoid underwriting delays and policies that may derail your loan. All companies must pay their sales and processing people so don’t fall for the pitch that a broker is more expensive. It just isn’t true. In fact, brokers have more flexibility and often cost less.
:Focused on customer service? A good indicator is whether a person or a machine answers their phone. Is your sales person still in the loop after you sign your application or do they ‘hand you off’ to another person or department for all contact?
Many companies are not properly licensed operating as a “net branch” using someone else’s credentials. Know who you are dealing with. Does their company name specify reverse mortgage? Who is the actual entity you are dealing with? Look at their website address and compare it to their trade name. There should be no confusion. If an explanation is required, keep shopping!