Recently we have seen lenders allow non-FHA approved brokers to originate jumbo reverse mortgages as well as a lender who doesn’t offer the HECM to its approved brokers. I give these lenders a lot of credit for really offering something to set themselves apart from the competition. I’m so tired of hearing about ABC Reverse Lender that has the “latest technology” that will cut the origination process down to 55 days instead of the standard 60 days. Honestly, technology isn’t going to sell me because lets call a spade a spade… reverse mortgages take a long time to originate.
The majority of lenders have opted to put their origination software on the web and eventually everyone will do the same. But there are still a few of the “Old School” reverse mortgage lenders that refuse to put their platforms on the web. They require you to download their software locally, which usually causes more headaches for everyone involved. One of those companies is Financial Freedom, but after using the software for the past year I’ve been surprised how easy to use and I really have no complaints… other than they require me to download updated rates every Tuesday (still, I can live with it).
I guess I’m tired of new reverse mortgage lenders trying to sell me on their latest and greatest software instead of offering me a product that I cant get anywhere else. I constantly see new lenders come out and release the same proprietary product with a different name. If this trend continues then I will agree that software will be the deciding factor in determining what lender I am going to send my borrowers reverse mortgage to.
What is it going to take for lenders to release a product that truly separates itself from the rest of pack? I don’t know, but I think the best thing to do is pick a product that is going to go after a certain “niche” market like Virtual Bank did. Their product is tailored for people with home values higher than the FHA lending limit but not high enough for a jumbo reverse mortgage. What other lender has released a product like that? No one. Now I’m not positive the LIFE Plan is always going to be a better deal for the borrower, but I am sure that I will sign up with that lender because it’s a great niche product I want my originators to have. While this post is more of me venting my frustrations after I received a call from an AE trying to sell me on his “superior software”, it also got me thinking if most originators want the latest and greatest software, new innovative products, or lenders that way pay the most on the back end? My vote is for innovative products… feel free to leave your answer in the comments section below.
Cheers!
