they begin marketing HECMs for Purchase, say those with experience with the product. “From a sales perspective, a reverse mortgage for purchase is different than a refinance,” Cooper says. “It’s imperative that loan officers go through multiple trainings to understand the different workflow, and most importantly, that they understand what is needed upfront to make the transaction run smoothly.” Camargo says he benefited from his experience as a forward originator. While a HECM for Purchase is a reverse mortgage, the borrowers are more like those taking out a forward loan. They are planning to sell one house and move into another, so timing is critical, Camargo says. Originators also have to keep in mind the parties on the other side of the transaction, who also are planning to move. “If it’s a refinance transaction, your only worry is how fast you can close; they already own the property,” he says. “When it’s a purchase transaction, it can jeopardize a lot of relationships if you can’t close in a timely manner.” Some real estate agents, for example, expect to close in 45 days or less, with some expecting 30 days or less, he says. A strong operations team is key to meeting expectations. For Hansen, the keys include simplifying the HECM for Purchase when discussing it with clients and other professionals. He also says loan officers need to act as fiduciaries and present borrowers with all their options, including forward loans. “You’ve got to be able to run that HECM for Purchase side by side with a 30-year fixed, a [Veterans Affairs] VA loan, an FHA loan or whatever the other options are,” he says. “As a mortgage planner, you are a fiduciary, not a salesperson.” In addition, loan officers should be prepared to field questions from a borrower’s financial advisers and adult children. They are often skeptical but can usually be won over with open and upfront discussions about the ins and outs of a HECM for Purchase. “Once you know how to communicate that, then you’ve got to spread the message,” he says. Nationwide Property Inspections and Preservation Inspections Preservation Insurance Loss Inspections REO Services Violation Management Utility Management Vacant Property Registrations Foreclosure Registrations Special Services Protecting Your Properties. Protecting You. • NFROnline.com • 800-639-2151 REVERSE MORTGAGE / SEPTEMBER–OCTOBER 2022 27
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