One under-publicized mortgage choice for brokers looking to widen their mortgage net is that of the reverse mortgage. As an equity-based mortgage option that will appeal to the large baby-boom demographic, Currie predicted that reverse mortgages are set to fill the refinancing gap.
To capitalize on the emerging mortgage shift, HighTech Lending is in the enviable position of already being an expert in providing reverse mortgages, better known as Home Equity Conversion Mortgages (HECM), to clients. The leading wholesale lender also has the expertise in training new brokers on the ins and outs of this unique mortgage option.
Reversing the mortgage trend
Part of the reason that reverse mortgages have traditionally represented a very segmented area of the overall mortgage space can be attributed, Currie pointed out, to the ambiguity surrounding the mortgage type.
There has been a general lack of understanding concerning the reverse mortgage channel among the broker community and their clients that is not helped by the misconceptions that can often filter down regarding the mortgage option.
“A lot of people fear getting into reverse mortgages because they just don’t know anything about it. They were just born and raised in the forward market,” Currie highlighted.