A reverse mortgage specialist is a financial expert who focuses on reverse mortgages. He or she could work for a bank, where he or she would handle reverse mortgages for the bank’s customers, for a broker who helps people find loans, or for an organization that provides reverse mortgage information and assistance. The requirements for becoming a reverse mortgage specialist vary, but the majority have some financial industry experience, including specific training in mortgage products.
Reverse mortgages are typically used the elderly, and some banks may restrict reverse mortgages to borrowers over the age of 62. The borrower receives payments that are deducted from the amount of equity the borrower has in the home with this type of mortgage. The payment amount cannot exceed the home’s value, and most reverse mortgages are only available if the property is free of other liens.
Once the borrower has left the house, the house must be sold to repay the mortgage, or the mortgage can be redeemed heirs and family members, either in cash or using a mortgage to pay off the reverse mortgage. Reverse mortgages are commonly used the elderly to ensure that they have a steady source of income in their later years; the benefit is that, unlike a home equity loan, the borrowers are not required to make any payments.
Reverse mortgages are complicated, and working with clients requires a reverse mortgage specialist with specific skills. Because reverse mortgages are based on the available equity in the home, the applicants’ creditworthiness isn’t as important as it once was. However, lenders must consider factors like the potential for a decline in the home’s value, which could force the bank to take a loss, as well as the applicants’ age and health. Reverse mortgage experts can also provide information on other financial products to assist their clients in choosing the best option for their needs.
These professionals are more likely to work in cities, where a reverse mortgage specialist can find plenty of work due to the large population. They may also work in smaller towns with a significant elderly population. Customers in rural areas who require reverse mortgage products or information can often get help over the phone. A reverse mortgage specialist, like other mortgage professionals, must be able to balance the needs of the bank with the needs of the customer in order to develop a suitable and low-risk mortgage.