Outstanding Principal Balance (opb)

Fixed income with a home that was owned free and clear, or

with a modest outstanding principal balance (OPB). The new

market includes the expanded baby boomer wave with limited

retirement savings. These consumers will be looking to supplement

their retirement income with funds from equity and the

desire to reduce their monthly fixed housing expense.

Both of these market segments will be relationship-driven

and will be a source of additional mortgage leads for the professional

reverse-mortgage loan officer. Oh, and by the way,

don't forget that the loan officer will not only be interacting

with the senior borrower, but probably with the senior's adult

children as well—and they will have a direct interest in the

product and service offered to their parents. Of course, these

adult children also can be prime leads for their own new home

loan or a loan refinance. So offering outstanding service to the

parents can lead to additional traditional loan business.

To address these profiles, a reverse-mortgage originator

should have an empathetic personality with good listening

skills, and be the kind of professional who inspires confidence.

The loan originator should have a natural affinity for

dealing with older persons, whose deliberate pace could infuriate

others.

Patience and listening are at a premium, for there are a lot

of problems that a reverse mortgage can solve if customized

correctly. The originator must be willing to spend large

amounts of face time with each customer—even driving them

to and from their Department of Housing and Urban Development

(HUD) counselor appointment, if necessary. Independent

counseling