How Financial Assessment Has Changed The Reverse Mortgage World Forever!

First, the work of the loan officer has become increasing more complex and time consuming given the laws established post April 27th with financial assessment. In Florida Reverse Mortgages continue to be strong but are also falling prey to the new laws which depending on the candidate can make or break the loan. Converting a once simple application and candidate to a reverse mortgage and subsequent commission is now, no easy task to tay the least. There are some things that can help both parties in the new world of reverse mortgages.

First stop getting hung up on the FA guidelines. If the borrower is going to qualify, prior to FA, chances are they will still qualify, maybe with a LESA or partially funded LESA but in my opinion if they paid their bills before, things will most likely all work out. It's true that prior to FA credit was not looked at as closely but if a senior was not paying their taxes before, chances are there would be some major issues that may have prevented them from getting the loan before FA.

Yes, new credit restrictions regarding late payments in the last 24 months and residual income requirements now exist but it goes back to if they were responsible before FA, chances are they are still responsible.

One size will never fit all and FA will neither disqualify all candidates either.

Second, both parties should listen to the other party. The borrower or customer should be allowed to talk as long as they wish and by doing this they will fill in many of the blanks. People favorite subject is themselves or their lives so let the senior talk! Naturally, you want to ask pertinent questions but by talking less and listening more, you'll be able to identify their needs and wants regarding this loan and if you can really help them. One you know what they are trying to accomplish, you'll do your job better which is to meet the need of the senior and help them for the long run.

The very last thing that will help both parties to win in this transaction is to set the proper expections as it regards what documention will be needed, the time frame to complete the loan the costs both upfront and closing costs. The new rules have definitely increased the documentation needed but it is still all usually within the average seniors reach.

Things like bank statements, SS cards, tax returns are all there and for most seniors pretty easy to access as most appear to be more organized than the younger borrowers.

In short, reverse mortgage lenders in florida will continue to rise regardless of the FA, as it is a simple equation of supply, demand and inflationary pressures.

For more information, visit www.SarasotaReverse.com

I am expert Article writer and have lot of experience in mortagage related. Hope you like this article. IIf you like this article do comment on it.