From All Reverse Mortgage Company(www.reverse.mortgage)   February 22nd 2016

How We Deliver a No Closing Cost Reverse Mortgage

Charlotte has sent the following question(s) in the ask experts blog. How can u do a no closing cost reverse mortgage when other companies charge upwards of $8,000?   Hi Charlotte,   That would be a little like asking why do some car companies charge more than others for their cars.  But then, it really wouldn't because not all cars are made the same and when it comes to the HUD Home Equity Conversion Mortgage (HECM or "Heck-Um"), it is the same government insured loan that we all offer.   So if it is the same loan and has the same government insurance, how can we close your reverse mortgage for less and more timely with fewer customer complaints?   Well, when was the last time you saw a commercial for All Reverse Mortgage?  You won't, we don't run them.  The cost to run a national radio and television advertising campaign with a national celebrity for a spokesperson is a phenomenal cost and one we are not willing to pass on to you.  We did look at some options years ago in smaller terms and they alone were quite costly and would have required us to raise the cost to our customers.  That was a move we simply were not willing to make.   We decided long ago that we would not be the largest reverse mortgage company and we are ok with that.  We decided the best was a much loftier goal.  To be the biggest you have to constantly feed the machine.  When the numbers are up, everyone is happy.  When the numbers slow down, the great beast begins to roar and everyone in the organization feels it and so do customers.   Management feels the apprehension of ownership and senior management, the sales staff feels the pressure to produce and customers begin to feel as though they are in a pressure cooker, being pushed to perform.  We don't feel that the reverse mortgage should be a program that people are pushed into.   If the reverse mortgage is right for you and your circumstances, great.  If not, the last thing you need is a sales person hounding and pressuring you to act simply because he/she is receiving that same pressure to produce.  And you should have a chance to look at all the options instead of being pressured to sign on the dotted line before you can compare terms and loans.   Our staff includes people who were part of the team that wrote and instituted the first jumbo fixed rate loan in the reverse mortgage industry.  We have DE Underwriters with experience in both forward and reverse loans who process the loans.   They have experience with reverse mortgages and have processed and closed FHA forward and reverse loans so they understand the current Financial Assessment environment and what documentation is needed for which loans, and which circumstances meet the guidelines and what can be obtained to allow some loans that otherwise would not.   I can't tell you how many times I hear from borrowers calling from other companies who tell me that they worked for months on a loan from that company and then the Loan Officer just stopped taking or returning their calls.  Aside from terrible customer service to this one customer, this drives up the costs of the lender and all the borrowers pay more when the lender's costs grow.   Finally as to your question with specificity, loans have value to lenders both from the fee income they bring from the borrower and from the income that can be generated when the lender either sells the loan or the underlying security of the loan in a GNMA pool.  Right now that value is fairly substantial on some loans.   When lenders are making more money on the back end of the transaction, it gives lenders the latitude to reduce borrowers' fees and possibly even provide lender credits to cover some costs resulting in a no closing cost reverse mortgage- or they can keep feeding the beast and retain a larger profit on those loans.   We choose to pass the savings on to borrowers whenever possible.  If you read our testimonials from closed borrowers, there is a very common comment.  Someone at another lender told them they could not get the pricing we quoted them but they got it and they are so happy they did!   United Southwest Mortgage, Inc., the parent of All Reverse Mortgage Company incorporated in 2004 and although we did originate both forward and reverse loans initially, we began originating reverse mortgage loans solely as All Reverse Mortgage Company in 2007.  Since then, we have been supplying eligible borrowers with the best service and pricing the industry has to offer.   We're not perfect, no one is.  But if you do a simple internet search to see if we honor our commitments and work to our utmost ability for our customers, I am sure you will find that we do.  In fact, we encourage everyone to do this same search about us and anyone else you are contemplating using.   Putting the customer's needs first is what enables us at All Reverse Mortgage to consistently supply the best service and pricing available - and that's how we do it!  

There’s really no better time to  compare today’s low and no closing cost options. Call us Toll Free 800-565-1722 or Calculate Your Reverse Mortgage Here.

  More from our blog:  Cost of Reverse Mortgage Now Surprisingly Affordable No Closing Cost Reverse Mortgage Options are BACK! Reverse Mortgage Fees: They’re Not All The Same!