“Mr. and Mrs. Smith, I have reviewed the income information you provided and looked at your current obligations and, quite honestly, I’m confused as to why you want to pursue a reverse mortgage.”
Silence filled the room and they both looked down for a moment. With an illuminated Christmas tree in the background, the moment got slightly awkward as we sat quietly, coffee cups in hand, around the platter of Italian pastries I had brought. They told me in our initial meeting that they needed extra money to meet obligations. Mr. Smith worked part time at a car rental company. He had a small pension and they both received Social Security. Compared with most of my borrowers, they were quite well off.
“You are not obligated to tell me if there’s a special need that’s confidential, but since you’ve asked for my help, the only way I can do that is if I understand what your needs are. I have had several customers in the past with profiles like yours, and they needed the loan to help their children, and that’s perfectly acceptable.” Mrs. Smith started to cry and Mr. Smith struggled not to.
“Our daughter and her husband have both lost their jobs, they’re living in California, and they have a 1-year-old child,” Mrs. Smith said. “We’ve been giving them money and as a result, we’ve been running short ourselves.”
And they were indeed. They had been late on their mortgage four months earlier and had not been paying their association fees in a timely fashion.
“I am a father and I would be doing the same thing for my kids,” I said, in an attempt to comfort them.
Sure enough, when the time came, underwriting had no choice but to impose a full LESA, which would consume most, but not all, of the available principal limit. They were quite upset about that until I showed them the math and explained how much money would be freed up on a monthly basis so that they could continue to provide assistance to their daughter and her family. At the closing there were hugs, handshakes and words of gratitude. They boarded a plane the next day to visit their daughter.
We are professional loan officers who arrange reverse mortgage loans for our customers, but many of us have to wear other hats as we do our job, acting as a therapist, counselor, social worker or friend—and that’s been OK with me. I am certain that every reverse mortgage loan officer can tell a story similar to the Smiths’.
I have been in the mortgage business for more than 25 years, but I never really experienced true satisfaction in my work until I dedicated my focus to the clients of the reverse mortgage program. Whether we are aiding a customer who has financial problems and is using the program as a means of last resort, or working with the clients of a financial advisor so that we can assist them with integrating the reverse mortgage as a critical retirement planning component, there is a wholesomely rewarding aspect to our roles.
What is even more fulfilling, however, is that I am surrounded by other loan officers who seem to have the same compassion and mission to serve seniors. That is so different from my former colleagues in the forward world, who always appeared to be pursuing goals that were mostly unrelated to customer service.
I also have the honor of serving as a manager for a team of loan officers that I could not be more proud of. When they contact me for assistance in trying to move a loan forward, each and every one of them exhibits a sensitivity and caring for their customers that is undeniable. Yes, they are getting paid for doing the work that they do, but the talk is never about how much money they can make on a loan.
It is our job as reverse professionals to work in the best interests of or clients, sometimes going above and beyond the loan officer role to advocate for their needs. The work is unconventional to be sure, but its reward is beyond measure.
