Ask anyone that has been involved in the reverse mortgage industry and one thing is always true, it’s a totally different lending animal than traditional loans and because of that is takes a significant amount of expertise and knowledge to not only sell the product, but more important, sell it responsibly.
Another almost universal truth in reverse mortgage lending is that the demand for the product is expanding and is expected to continue to grow as the baby boom generation continues to retire.
For reverse mortgage professionals this means it is more important than ever to work with third party vendors that not only understand the reverse mortgage industry but also have the systems and people in place to ensure your borrowers are being taken care of.
So what should reverse mortgage lenders be looking for in an AMC?
5). Compliance – Of course compliance is vitally important no matter what type of lending is happening but the stakes go up dramatically when we are dealing with reverse mortgages and the borrowers. The AMC you work with must have all the necessary compliance points in place to ensure the lender is not only compliant with the current regulations but also embodies the spirit of reverse mortgages and what they can do.
4). National Coverage – Reverse mortgage opportunities are located everywhere, not only in California, Florida and Arizona. The AMC you work with must be able to handle your needs anywhere in the country and do so without outsourcing to other companies who may not be qualified for the job.
3). Technology – The needs of mortgage lenders in the area of technology are elevated in the area of reverse mortgages and your AMC must have the systems in place to make sure reverse mortgage appraisals are handled properly. From monitoring the panel, to assigning proper appraisers, to quality control and delivery all the aspects of mortgage lending are more intense in the reverse mortgage world and the AMC you work with must have the technology to cover these expanded needs.
2). Properly Vetted Appraiser Panel – Now we are getting to the nuts and bolts of it all. Great appraisal management starts with the right appraiser panel. This is so important, especially in reverse mortgages. How the AMC recruits, approves and manages their panel has a direct effect on quality, professionalism, service, and communication. Reverse mortgages are a specialty market and it requires a special set of customer service skills from the appraiser. He or she must have the training, expertise and knowledge of the loan product to properly handle this unique market.
1). Dedicated AMC Staff- Here we are…the # 1 reason why reverse mortgage lenders benefit from working with an AMC that knows the product: Properly Trained Staff. No AMC client has more need for a dedicated trained staff than the reverse mortgage lender. The particular needs of the reverse mortgage borrower demands a certain level of service and understanding and your AMC should have trained staff in place to assist them in fully understanding the process and be able to answer any questions from the borrower.
As a reverse mortgage lender you have a lot to worry about. Working with an AMC, the right AMC, can make the appraisal management process SIMPLER, SMARTER, and MORE SOLID, allowing you to spend your valuable time taking care of your clients and their needs.