July/August 2022 Reverse Mortgage Magazine

and providing realistic expectations for all parties in the homebuying process is critical to increase adoption.” Skaggs says interest in HECMs for Purchase, which make up about 25 percent of her company’s business, has been picking up. She is spending more time talking to real estate professionals to ensure that the product is top of mind, as well as to financial planners. “Getting out in front of financial planners and real estate agents is key to survival,” says Skaggs. “If they can understand that this is a benefit to their client, those clients are still proceeding. You just have to be out in the field and talking to people.” Private-Label Products Private-label mortgages also are poised to see a surge in interest. The fees are typically lower, and the proceeds are generally about the same, Skaggs says. “Some people are rate conscious. Some people are cost conscious. So, you kind of have to judge your customer.” This year, the limit on government-backed HECMs is $970,800, up from $822,735. Limits on private-sector reverse mortgages are typically more than $1 million, with some products as high as $4 million. Seniors may turn increasingly to private-label mortgages as they seek to preserve assets during a volatile time for stocks and bonds, Robinson adds. “A proprietary reverse mortgage—or even a HECM—is a tool that can afford consumers the opportunity to utilize liquidity from their home’s equity rather than risking having to sell securities/assets and potentially suffer investment losses,” he says. “As always, of course, we encourage our customers to seek guidance from a financial adviser.” But reverse mortgage originators also should be prepared to discuss whether a reverse mortgage fits a client’s circumstances. “Surveys I have reviewed show that inflation and the economy are currently the most concerning topic among Americans, so patience and a thoughtful, Change lives and make retirement better for seniors. Our accurate and thorough closing process provides peace of mind for lenders and mortgage brokers. AllegiantReverse.com Toll Free: 844.808.8299 Reverse Done Right. Experienced Professionals Matched to Your Needs National Title and Settlement Services Hassle Free Assistance and Training GFE Fee Calculator 24 Month Tax History Property & Demographic Profiles Adjusting to Higher Interest Rates continued from page 25 26 REVERSE MORTGAGE / JULY-AUGUST 2022

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