Industry News

Reverse mortgages daunting for brokers

Many hoping to capitalize on growing loan segment

Here's a quiz question for anyone who thinks they know reverse mortgages. What's the biggest financial obstacle preventing seniors from acquiring such funding on their homes? No, it's not a lack of good health or a promise to stay in the house forever. And, it's not about getting permission from family members or having a current income. Believe it or not, says Ralph Rosynek Jr., president, 1st Reverse Financial Services, Westmont, Ill., it's delinquent student loans. Few phrases are as less likely to be linked than "senior citizen" and "student loan," but Rosynek says the elderly often co-sign for student loans on behalf of their grandchildren. That creates problems in the reverse-mortgage process for grandma and grandpa, explains Rosynek, "because the lender must be in the primary lien position on the property." He and colleague David Cesario, the company's executive vice-president, recently held court in a room packed with eager mortgage brokers who wanted to learn more about reve...