About Reverse Mortgage Brokers

Reverse mortgage brokers work with seniors and financial institutions to work out a situation in which the financial institution effectively purchases the senior's home but does not collect payment until the senior dies. At that point, the home is sold, and the bank gets the profit. Reverse mortgage brokers help make these deals work for both parties and reap a commission for successful transactions.

Requirements

Reverse mortgage brokers typically start as loan officers in banks or small companies. These loan officers learn the ins and outs of the system and then become bonded and certified to be brokers. Most states require licensing and some sort of insurance, but these requirements are pretty flexible from state to state.

Significance

A reverse mortgage broker works with senior citizens who want to place a reverse mortgage on their home. That means the homeowner will get a line of credit worth the value of the home, and the money does not need to be repaid until the homeowner dies or sells the house. The reverse mortgage broker works with the senior citizen to put him into contact with the right lender to work out the mortgage plan.

Benefits

For seniors who are not financially prepared for retirement, a reverse mortgage is the way to go. No one can get a reverse mortgage until the age of 62, so one must be nearing retirement age to qualify. These plans also work for people who do not have family to leave their property to because it allows the senior to continue living in the house but make use of the equity buildup over decades of paying for the mortgage.

Warning

The house that is reverse mortgaged no longer belongs to the homeowner. While the homeowner lives there, the lender technically owns the property and may put restrictions on it. Good reverse mortgage brokers should let the client know about these drawbacks, and if the broker is not upfront about the cons, then seeking out a new broker is an excellent idea.

Potential

For people who are looking for an up-and-coming career option, being a reverse mortgage broker is a good choice. As more people age and fewer of them have the money to make it decades after retirement, reverse mortgages will become more popular. This means working as a reverse mortgage broker can be a lucrative field in the next few years.

Resources

• The Leading Reverse Mortgage Organization Can Provide Information.