Why I Started PS Financial Services
I was in training at one of the country’s largest reverse mortgage companies when the CEO said, “We don’t want every loan.” What he meant by this was, “We will deny the less than perfect borrower and/or property.”
I had difficulty with this concept because I was a front line mortgage loan originator (MLO) who put food on the table by closing every loan possible. I was working hard to bring in that business and help those families in less than ideal situations.
I’ve also helped change people’s lives: people who ran into some type of hardship in retirement whether it be physical, financial or both. Helping these people get out of their situation was incredibly fulfilling and I would fight with all my might to help them get their reverse mortgage.
Now this CEO was telling me I would have to look these retirees in the eye and tell them we can’t help them.
I wasn’t having it.
“Reverse Mortgage Loans Fit an Important Niche…”
Says Columbus Dispatch
The reverse mortgage loan has undergone many changes in the past few months, and while some may say it is not worthwhile, despite all the success stories, the reverse mortgage industry will not give up on trying to educate consumers, financial planners, etc. on the benefits of the program.
Most importantly, for those who say the reverse mortgage loan is on its way out, Columbus Dispatch says, “reverse mortgages fit an important niche,” and for that very reason alone they will never cease to exist.
Even in marketing, and branding your company, they say, “find your niche.”
Niches serve a small, but very important part of a certain market. They give you a determined focus and a specific group to appeal to. They exist outside the established norm, in this case, retirement planning strategies, but can be just as worthwhile and advantageous as any mainstream solution.
The “Misunderstood Mortgage”: Changing the Reputation of HECM Loans
One of the biggest misconceptions about the reverse mortgage loan is that the program should just be used as a last resort. From financial planners to borrowers, many looked into the reverse mortgage loans for themselves or their clients if they were in a financial crisis.
This could not be further from the truth.
Consider a Reverse Mortgage Loan in Your Retirement Plans
An article published in the Journal of Financial Planning, “Retirement Trends, Current Monetary Policy, and the Reverse Mortgage Loan Market”, has made strides in cleansing the reverse mortgage of it’s once (incorrect) reputation as “a loan of last resort.”
The article comes only a month after FINRA declared that the reverse mortgage loan is no longer a loan of last resort. This announcement, complied with the reverse mortgage loan industry’s plans to work more closely with financial planners, has been creating a solid foundation on which the reverse mortgage loan can build itself up anew.
Choosing a Financial Planner: What to Look For
Moving forward, the help of financial advisors and planners will be an indispensable part of the success of the reverse mortgage program.
However, it’s important for consumers to know that not all financial planners are created equal and they should seek out someone geared toward their specific needs that will provide crucial information on the state of their retirement and what they will need to make their retirement suitable.
According to an article published by Reverse Mortgage Daily, the Consumer Financial Protection Bureau has taken the necessary steps in order to ensure seniors are receiving the help they need by releasing a guide that will help them make the right decision when the time comes.
Retirement concerns for many seniors can stem from one main concern: finances. How will I afford this? Will this be enough to pay for it? How much do I need to save? And the list goes on.
However, there are other concerns future retirees, especially those with a spouse should look into, namely, the unforeseen issues that may raise when one spouse, or both spouses, chose to retire.
An article published on FinancialAdvisor.com, which discussed emerging trends in the baby boomer market, brought up what writer, Robert Laura, likes to call, “the iceberg of retirement.”
What does this mean?
To Laura, who states in the article “traditional retirement planning is like an iceberg…,” there are more issues at hand when seniors plan for retire than what people traditionally concern themselves about.
Most importantly, he stresses the importance of seniors preparing themselves by talking about these issues with their spouse and choosing a financial advisor equipped to lead them through to a comfortable and fulfilling retirement.
Two of the most crucial items on Laura’s list were “preparing the marriage for retirement” and “staying mentally and physically active.”
That’s not to say the other items are less important but these two, to me at least, may be some of the most overlooked items can cause the most damage.
Bloggers come in all shapes and sizes. Cliche, but true. Not everyone is hear to blog about the same thing, nor will everyone bring the same background or wealth of information to the table.
What everyone will bring is a way to educate their (past, present and future) clients.
Looking back, this is one of the reasons I’ve always admired about blogging: the freedom. The freedom to blog about whatever, whenever, and share what you know or found out, with everyone on the Internet. Must the content be original and not just copy and pasted off another website? Yes, but this doesn’t limit what you can write about. You just need to make sure it comes from you.
At a time where information is passed along faster than ever before, it’s incredible how much we miss on a day-to-day basis.
This is where we come in.
If there’s one thing I’ve learned in my years as a reverse mortgage professional is that you need others to be successful. Success is not a solitary endeavor. If anyone tells you it is, they’re lying.
Think about it…
How many people do you depend on, or refer to, on a daily basis? If we did everything by ourselves, hoping for a positive outcome, I’m sure we would go insane. I’m sure some people already have.
Why does the Reverse Mortgage Program NEED to Exist?
It’s a pretty bold statement but I stand behind it. Aside from the negative media, the recently implemented changes and the success stories of the reverse mortgages, there is the question: why does the reverse mortgage exist?
I don’t think it’s a question of ‘does’ but a question of ‘need.’ There is a socio-economic need for the reverse mortgage, and even if the program changes, it can never be destroyed, just altered. Just like energy, there will always been ‘the need’ for the reverse mortgage. According to an article by the Mortgage Professor, “Should Government Support HECMs?,” here’s why:
I’ve heard them all.
The point of these posts, however, is to tackle them head-on and demonstrate how they’re either false, or reveal an in-complete truth.
Reverse Mortgage are too expensive.