BlackFin Group, a management consulting firm serving the Banking and Mortgage Industries, has published a new report on the Reverse Mortgage Lending business authored by industry experts Wendy Peel and Rachel L. Smith. The paper, entitled “Serving Clients for Life with HECMs,” explains why every lender should have these loans on its product menu and explains how this can now be easily accomplished.
“The demographic for reverse mortgages is $10 trillion strong and America has a serious problem with retirement, health care and the burden being placed on Generation X caring emotionally and many times financially for both Boomers and Millennials,” said Peel, Partner and Managing Director for BlackFin Group’s Align Reverse Lending Practice. “A reverse mortgage is a mechanism by which borrowers gain access to that same equity they’ve been pouring into their home via their mortgage payments for years – often decades – so that they may age in place.”
The Home Equity Conversion Mortgage, or HECM, is the federally insured reverse mortgage product. It is insured by the Federal Housing Administration (FHA), a branch of the U.S. Department of Housing and Urban Development (HUD). HECMs account for nearly all reverse mortgages made today in the U.S.
In their report, the authors explain the loan program and its history, compare it to other loan programs suitable for this demographic, break down some outdated myths, fully define the opportunity and now the ease with which these programs can be leveraged by lenders to offer solutions that meet the current demands of the borrowers they serve.
Smith is a Sr. Consultant at BlackFin Group, and an actively practicing attorney who specializes in reverse mortgage compliance consulting. Over the past ten years, she served as Compliance Analyst and In-House Counsel at ReverseVision, then as Sr. In-House Counsel and Sr. Product Manager at QuantumReverse.
Peel heads up BlackFin’s new Align Reverse Group, which helps lenders launch successful reverse mortgage departments. BlackFin client engagements vary from data analysis to general advisory to engaging in the heavy lifting required to implement an institution’s business strategy or technology initiative. Virtually all of the work the consultancy does starts with a thoughtful assessment of the institution’s current state and future goals.
In their new paper, Peel and Smith lay out a thoughtful exploration of a complex topic and, in the process, give lenders unbiased data to make a decision on engaging the support of the Align Reverse Group at BlackFin. For more information or to purchase a copy of the report, visit www.blackfin-group.com.
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