Is It Time for a Mortgage Outsourcing Assessment?

​​Is It Time for a Mortgage Outsourcing Assessment?

By: Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA     
President, Colorado Mortgage Lenders Association

The mortgage origination landscape has forever changed. Today's environment includes increased compliance and regulatory requirements, constant uncertainty, a focus on quality, and customers who demand fast turn-times and prompt customer service. These factors have led to a continual increase in expenses and the cost to originate a loan.

Yet, banks still want to be able to offer their customers mortgage products while at the same time not lose the relationship to a competitor. Unfortunately, they come with a price tag that many financial institutions just cannot afford.
Many banks are considering outsourcing mortgage origination as part of a continuous drive to improve efficiency & reduce costs.

1st Mortgage Solutions Outsourcing Assessment
We can help.  The 1st Mortgage Solutions Outsourcing Assessment is quick, effective and organized into multiple phases to adapt to your specific requirements and constraints.

Our Outsourcing Assessment is designed to provide you with an independent business assessment based on our understanding of the corporate objectives, existing process models, LOS, & loan cycle objectives. We can scale the review to suit the size/complexity of your outsourcing requirement.

There are many other benefits financial institutions get by outsourcing mortgage loan origination: You get the support you need without sacrificing the customer experience.

Our Difference is Our People and Our Process
We provide the most personal service experience in the industry to help you through the process.   You can count on our team to take you through the entire loan process, beginning to end, so your clients will experience the highest level of continuity and quality of service, while still putting your loan originator as the point person, dealing directly with your depositor.

Our high-touch program provides superior loan processing solutions that reduce costs, generate revenue and allow you to stay focused in an increasingly competitive landscape; positioning you for future growth.

A More Robust Line of Products

By outsourcing, you get the ability to offer mortgage products and programs that you otherwise may not be able to offer. 

  • Our Suite of Products:
    • FHA Loans
    • VA Loans
    • Conventional Loans
    • Jumbo/Super Jumbo Loans
    • Reverse Mortgages (Home Equity Conversion Mortgage or HECM)

Additional Marketing Support

We provide marketing expertise, support, and deliverables to help you achieve your goals and make your mortgage lending program a success. Even if you want to use your own marketing department, you can take advantage of our knowledge and experience.

For more information on the 1st Mortgage Solutions Outsourcing Assessment please contact Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA at 303-854-3030 or tharder@1strmusa.com

Is it the Right Time to Outsource Your Residential Mortgage's?

Is it the Right Time to Outsource Your Residential Mortgage's?

By: Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA   
President, Colorado Mortgage Lenders Association

With the burden of increased regulation, origination costs and other operating cost and risks, some community banks are finding they are no longer able to have a viable, profitable mortgage banking business.

Yet, these banks still want and must be able to offer their customers mortgage products, and at the same time not lose the relationship to a competitor. One emerging solution to this dilemma is to outsource mortgage origination functions to another non bank lender.

If smaller banks tell their customers to go elsewhere for a mortgage, they could see them take their deposit relationships to another institution. (Excerpted from Origination News)

The answer to this dilemma is the Mortgage Solutions Outsource Program.  For the past 12 years, 1st Reverse Mortgage USA has had successful relationships with banks and the reverse mortgage program. We now offer this exact program for traditional mortgages as well.  We offer private-label, fully compliant mortgage outsource services to mortgage lenders in the business of originating loans direct-to-consumer or through third parties.

Our Difference is Our People and Our Process.
We provide the most personal service experience in the industry to help you through the process.   You can count on our team to take you through the entire loan process, beginning to end, so your clients will experience the highest level of continuity and quality of service, while still putting your loan originator as the point person, dealing directly with your depositor.
Our high-touch program provides superior loan processing solutions that reduce costs, generate revenue and allow you to stay focused in an increasingly competitive landscape, and position you for future growth.

  • Suite of Products:
    • FHA Loans
    • VA Loans
    • Conventional Loans
    • Jumbo/Super Jumbo Loans
    • Reverse Mortgages (Home Equity Conversion Mortgage or HECM)

We know the RIGHT way to do business is to put your needs first.  The key is working with a strategic partner who has extensive experience and success in delivering end-to-end solutions.

For more information on becoming a Member of the 1st Reverse Mortgage USA Lender Network, please contact Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA at 303-854-3030 or tharder@1strmusa.com

Mortgage Solutions Private Labeled Outsource Platform

Mortgage Solutions Private Labeled Outsource Platform 

 Forward and Reverse Mortgage Platform Reduces Overall Risk

By: Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA   

The banking industry is experiencing dynamic changes.  Market volatility, increased regulation, shrinking demand, globalization and competition are driving the industry to adopt new operating models. Banking Services Outsourcing has been adopted by financial institutions as a key strategy to survive and thrive.

With the burden of increased regulation and the resulting increase in origination costs and other operating risks, some financial institutions are finding they are no longer able to have a viable, profitable mortgage banking business.

Yet, these banks still want to be able to offer their customers mortgage products while at the same time not lose the relationship to a competitor. Sound decision making and speed are important in the lending business.

With both revenues and profit margins being squeezed, every customer contact must produce the best possible return. This requires solutions that automate and consolidate lending processes so you can boost your efficiency and reduce transaction costs.

The solution to this dilemma is the Mortgage Solutions Private labeled Outsource Platform.  We offer private-label, fully compliant mortgage outsource services to mortgage lenders in the business of originating loans direct-to-consumer or through third parties.

We provide superior loan processing solutions that reduce costs, generate revenue, allow you to stay focused in an increasingly competitive landscape, and position you for future growth. 

Mortgage Solutions Private Labeled Outsource Platform
We know the RIGHT way to do business is to put your needs first.  The key is working with a strategic partner who has extensive experience and success in delivering end-to-end solutions.

  • Mitigating risk: Our centralized processes and underwriting experience enable you to reduce recourse risk. Our compliance team works on your behalf to keep all of your documents and processes up-to-date and compliant.
  • Reducing costs and margin volatility: Our proven strategies help you move from a fixed to variable cost model. We also act as your conduit to the secondary market, protecting you from the effects of interest rate swings.
  • Advanced technology: Your loan officers' benefit from our technology capabilities – delivered without capital investment or need to upgrade your existing systems.
  • Maintaining your brand: You can customize the customer experience with your organization's name and logo from originations, as well as control all cross-selling and retain refinance income opportunities.
  • Operational Support: Reduce fixed costs and adapt quickly to increasing or decreasing volumes in workload while avoiding costly acquisition and maintenance of your own staff. We provide transparent, private-label services that allow you to scale your operations.
  • Our approach delivers high-value solutions, product knowledge and high-level support

Our Advantages

  • The extensive expertise of our mortgage loan processing professionals will provide you efficient processing, that facilitates productivity and increases the percentage of loan closings.
  • Outsourcing this duty to us can result in cost savings for you.
  • With a dedicated team and cutting edge infrastructure already in place, we save you from investing money to establish these resources.
  • We help facilitate in reducing loan cycle time and increase borrower satisfaction.

Our Product Offering Includes:

  • Home Equity Conversion Mortgage (Reverse Mortgage Loans)
  • Standard FHA 203B Loans
  • VA Loans
  • Conventional Loans (FNMA & FHLMC)
  • Jumbo/Super Jumbo Loans

We have over 30 years of experience working with Banks in the forward mortgage lending marketplace and over 12 years of experience in the HECM (Reverse Mortgage) market. 

1st Reverse Mortgage USA®, is a division of Cherry Creek Mortgage Company, Inc. (CCMC) one of the country's largest mortgage lenders.  We have direct endorsement authority from HUD to originate process, underwrite and close mortgages.  Contact us today to discover how we can help you achieve your mortgage goals and stay competitive in a changing market.

For more information on becoming a Member of the 1st Reverse Mortgage USA Lender Network, please contact Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA at 303-854-3030 or tharder@1strmusa.com

 

Senior Home Equity Reaches $3.9 Trillion, Breaks Previous Records

Senior Home Equity Reaches $3.9 Trillion, Breaks Previous Records

Reverse Mortgage New Guidelines: Embraced by aging baby boomers and their trusted advisers as an additional retirement tool

By: Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA
Portions of this article are excerpted from Reverse Mortgage Daily and the Scotsman Guide

Home equity among seniors continues to rise, reaching $3.9 trillion in the fourth quarter of 2014 — signaling potential for more reverse mortgage market opportunities to come as economic factors improve.

The NRMLA/RiskSpan Reverse Mortgage Market Index (RMMI), which measures trends in home values, home equity and mortgage debt of homeowners age 62 and older, reached 186.78 during the fourth quarter of 2014, marking the 11th straight quarter of growth for the index, which dates back to 2000.

Previously, the RMMI rose to 183.87 in the third quarter of 2014 — the highest level since Q3 2007. Also in the third quarter of 2014, senior home equity increased to $3.84 trillion, but has since risen further to $3.9 trillion in the fourth quarter of 2014.

Recovering home values and improving consumer confidence is leading more and more people to consider a reverse mortgage.

Reverse Mortgage New Guidelines: Embraced by aging baby boomers and their trusted advisers as an additional retirement tool

The most significant new guideline is the requirement that every borrower must undergo a financial assessment prior to approval. This financial assessment will verify the borrower's ability and willingness to pay financial obligations associated with the HECM loan. Specifically, borrowers will have to demonstrate they have the means to pay real estate taxes and home insurance, both of which are obligations of a reverse mortgage.

Reverse mortgage borrowers will need to provide tax returns, paystubs and bank statements, and will be required to meet residual income levels and have a satisfactory credit profile. In essence, reverse mortgage underwriting guidelines will be similar to VA loans which have been a proven way to financial stability for many years.

To ensure funding will be available for tax and insurance obligations, borrowers who do not meet the standards of the financial assessment will be required to establish a fully funded or partially funded life expectancy set-aside. This requirement may narrow the number of potential reverse mortgage borrowers. Compared to conventional mortgage financing, the fully funded life expectancy set-aside is significantly longer because it is tied to the life expectancy of the borrower.

If you have any questions or would like additional information regarding the New FHA Reverse Mortgage updates, please contact Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA at 303-854-3030 or tharder@1strmusa.com

Studies Confirm: New Uses of Reverse Mortgages for Clients

Studies Confirm: New Uses of Reverse Mortgages for Clients

By: Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA
Portions of this article are excerpted from Reverse Mortgage Daily

Did you know that, even for wealthy clients, a reverse mortgage can be beneficial? Seniors can avoid paying taxes on withdrawals from their retirement account by using a reverse mortgage. It can also be used to pay off their mortgage, move closer to their family, make needed home repairs, provide for medical expenses, or…

A recent Investment News article states, "Reverse mortgages allow homeowners 62 and older with substantial home equity to tap that equity as a tax-free source of funds to pay bills or health care expenses, or to provide additional retirement income.

Used properly, a reverse mortgage can also serve as a standby line of credit that can shield investment portfolios in down markets and improve chances that clients won't outlive their money.
Unlike borrowers with conventional mortgages, reverse mortgage borrowers aren't required to make monthly mortgage payments (borrowers must remain current on property taxes, homeowner's insurance and HOA dues).

'RISK MANAGEMENT TOOL'
John Salter, a tax attorney specializing in pension matters states, 'Our study considers using a HECM Saver reverse mortgage as a risk management tool in conjunction with a two-bucket investment strategy, coined the standby reverse-mortgage strategy, in order to increase the probability a client will be able to meet predetermined retirement goals,' the three wrote in an article published in the Journal of Financial Planning in 2012.

'A HECM is just another way we can help clients address their retirement income needs,' said task force member Marguerita Cheng, a financial planner and chief executive of Blue Ocean Global Wealth.

A reverse mortgage also can be used as an income bridge to defer claiming Social Security benefits until an older age when they will be worth more, she said.

 'The great benefit of an untapped reverse-mortgage line of credit is, it continues to grow at the rate of the cost of money," said Alain Valles, president of Direct Finance Corp., a reverse-mortgage lender.'

Investment News: http://www.investmentnews.com/article/20140216/REG/140219909/consider-new-uses-of-reverse-mortgages-for-clients

For more information on becoming a Member of the 1st Reverse Mortgage USA Lender Network, please contact Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA at 303-854-3030 or tharder@1strmusa.com

Center for Retirement Research: Reverse Mortgages a Very Valuable Product

Center for Retirement Research: Reverse Mortgages a Very Valuable Product

By: Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA
Portions of this article are excerpted from Reverse Mortgage Daily

The Center for Retirement Research at Boston College released a recent report on how retirees can supplement their assets with home equity, primarily via touting the benefits of using a reverse mortgage or downsizing to a smaller residence.

In an article from Morningstar Alicia Munnell, director of the Center for Retirement Research states; “[Reverse mortgages] are not a last-ditch-effort product.  But for those for whom it’s right or who can afford it, it will be a very valuable product over time because people are going to need to add their home equity to other sources of retirement income to get by.”

Munnell, who also has a book coming out titled “Falling Short: The Coming Retirement Crisis and What To Do About It,” even likened reverse mortgages to annuities in the role they play in terms of asset allocation.

“So, if you take [a reverse mortgage] in terms of a steam of income over the rest of your life, it is very much like an annuity in terms of how the payments seem to you,” Munnell said. “They continue for as long as you live, and then the money is paid back out of the sale of your house. So, it’s a stable, predictable source of income that would allow you to take risks with the other part of your portfolio.”

The combination that differentiates

We have several different programs to make your reverse mortgage business more efficient and profitable.
Our processes and technology automates an otherwise complex and unwieldy workflow. Our outsource reverse mortgage and back office fulfillment solution reflects decades of experience in mapping and perfecting mortgage fulfillment processes, as well as our co-development of an intelligent technology that facilitates lenders’ distinct business objectives.

The 1st Reverse Mortgage USA end-to-end solution
We handle the entire mortgage process – from originations to loan processing. You offer the mortgage under your brand and focus on your core business. Our successful model and simplified ‘5 Step Process’ including; education, prequalify, counseling, application and completion is designed to address your most pressing business challenges.

Our solution provides you with a thorough understanding about the reverse mortgage program.  The key to good education is making sure we cover all the important points needed to make an informed decision, but at the same time keeping the information simple and easy to understand.

We have a team of reverse mortgage specialists available to answer your questions and discuss this program with your borrower. We will be happy to provide information to any family member or other individual who may be providing assistance to your client as they make decisions about how a reverse mortgage fits into their financial well being.

For more information on becoming a Member of the 1st Reverse Mortgage USA Lender Network, please contact Tim Harder, Vice President-Business Development, 1st Reverse Mortgage USA at 303-854-3030 or tharder@1strmusa.com

 

 


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