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Insight into Reverse Mtg. deals, please

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xmtpedprl

Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
Hi,

We receive calls for reverse mortgage deals quite often. Certainly much more than any time in the past. I am hoping that many of you do, too.

What I am seeing with these is frightening. The LOs working these deals are as aggressive, if not more, than any others I've seen, and I can rarely pull in their orders due to not promising values up front.

This came to a boiling point today, when a company (literally) demanded that we not proceed until we promised $650,000 for a home in Oak Park, Illinois. We have the order, but were told to forget it until we promised. (They were smart, they didn't put that in writing, only on the phone verbally.) We shucked, we jived, we did the "Three Ds of Dodgeball," but they told us to forget it if we didn't promise.

And this has happened on the last 5, at least, to my knowledge.

Is it that easy for these LOs to prey upon elderly citizens? Will they not lose even a wink of sleep knowing full well that they are on a mission to commit acts of fraud with every order? I don't understand it, it seems so evil to me, more so than the average imbecile with whom I deal with every day, that I become rather violent inside and want to do nasty things as a result.

Your thoughts, please.

Dave...
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Where are these orders coming from? Direct from lender, or through an AMC or MB.

We did some reverse mortgage work about a decade ago, direct from the lender. We never had any value issues with this type of work; absolutely pressure free.
 

xmtpedprl

Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
David,

I covet those clients, we have not been as fortunate. And from what I can tell they are (at least ours) all coming from a MB.

Thanks,

Dave...
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
And from what I can tell they are (at least ours) all coming from a MB.

That's your problem, not the lender (or LO). It has been my experience that those dealing with reverse mortgages are one client type that is actually interested in what the property is worth.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Adept,
I think what your experiencing is the typical slimmy MB can no longer
find a lender for subprimes, so they 'buy' leads for FHA/Reverse
Mortgage (I've noticed a couple of old actors have been doing
commercials lately).

So they are no different than any other aggresive MB. Tell them to
take a hike. I think the standard MB process has become throw as
many 'deals' at the wall and hope some will stick and get that big
4-5% fee. I don't get as excited about them as the MB, cause I
just see them as a problem.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Adept,

Are these reverse mortgages for FHA? I do a lot of them that are FHA and I have never had any pressure to hit a #. Most of my clients order the AMC's. So, I never get that direct MB pressure. It your order is FHA why not accept it and get the case # then turn them into HUD? That's what I would do.
 
Joined
Jun 3, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
Reverse mortgages only lend something like 30% of the value to the borrowers; the balance is the reserve for the neg am interest.
 

xmtpedprl

Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
I used to LOVE 'It Takes a Thief,' so tell me, who else is doing them besides Wagner...?

And you're right, if it comes from an MB it'll be the same old same old. But man, it just KILLS me to see these guys specifically targeting the seasoned citizens of this country!!!

:new_cussing:

And what I told this idjit in response to his request I dare not repeat here.

Dave...
 

xmtpedprl

Senior Member
Joined
Dec 6, 2005
Professional Status
General Public
State
Florida
RSW,

Only one (recently) was FHA, the last round have not been. But you're correct, I'd do just that given the opportunity.

Dave...
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Hi,

We receive calls for reverse mortgage deals quite often. Certainly much more than any time in the past. I am hoping that many of you do, too.

What I am seeing with these is frightening. The LOs working these deals are as aggressive, if not more, than any others I've seen, and I can rarely pull in their orders due to not promising values up front.

This came to a boiling point today, when a company (literally) demanded that we not proceed until we promised $650,000 for a home in Oak Park, Illinois. We have the order, but were told to forget it until we promised. (They were smart, they didn't put that in writing, only on the phone verbally.) We shucked, we jived, we did the "Three Ds of Dodgeball," but they told us to forget it if we didn't promise.

And this has happened on the last 5, at least, to my knowledge.

Is it that easy for these LOs to prey upon elderly citizens? Will they not lose even a wink of sleep knowing full well that they are on a mission to commit acts of fraud with every order? I don't understand it, it seems so evil to me, more so than the average imbecile with whom I deal with every day, that I become rather violent inside and want to do nasty things as a result.

Your thoughts, please.

Dave...


Why do you Shuck & Jive?
 
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