It is not news that it’s become more difficult to get a borrower approved. The programs that used to be there for you don’t just have tighter underwriting guidelines. They don’t even exist anymore.

With the death of Sub-Prime lending, a gap was filled by the FHA program. The FHA program had high LTVs, no credit score requirements, and most importantly, had amazing interest rates. But, this has all changed. A cash out mortgage refinance is now limited to 85 percent LTV. Almost all of the FHA banks have implemented at least a 620 score minimum. But, most frightening is the new adoption of the HVCC guidelines. Come January, FHA loans are going to be just as hard as any other loan out there to get approved.

But, this isn’t the end. There is still a great customer that has almost certainly been overlooked by you up until now: the reverse mortgage lead. The problem in the industry right now is not the mortgage leads. There are still as many available customers as there have ever been, there just aren’t the programs to get them approved. But, the guidelines for reverse mortgages haven’t changed at all.

These mortgages are not only a great service to homeowners, but they are incredibly easy to close. For the most part, the processing will be handled almost entirely by the bank itself. You are able to make strong fees on them with minimal work. But, the problem with them is lead generation.

This is not an easy market to tap into. A borrower must be at least 62 years old in order to qualify for a reverse mortgage. By this phase of someone’s life, typically, they have already found all the professionals that they rely on. If you aren’t already that professional, it is going to be very hard to become him.

But, fear not! It’s almost certain that the same companies you have been buying your refinance leads from also sell reverse mortgage leads. And, rest assured, these are good leads. Typically, these are not internet shoppers. These clients have expressed an interest because they actually have one, and they will be happy to hear from you.

So, call your account executive and ask them if they can walk you through the process of originating reverse mortgages. It will be one of the best decisions you will make in your originating career.

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4. Now Is The Best Time To Purchase A Mortgage Broker Lead
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