Reverse Mortgages: A Credit Union Financial Planning Tool
by: Ken McGraw, Director Reverse Mortgage Services, AnyHour Solutions
As our country’s population ages, the time-honored tradition of saving money for retirement and living out the “golden years” in a lifestyle of ease is increasingly threatened. The nest egg that seniors had once relied upon to keep them fiscally healthy in retirement has diminished considerably. As costs have increased, the cash reserves that many thought they could rely upon have been diverted for the use of daily living. Many Americans have been helping grown children and their families make it through the current economic downturn, adding to the financial struggles of grandma and grandpa.
More and more seniors are turning to a reverse mortgage as a means of surviving in this current economic environment. They are able to use a reverse mortgage to fix cash flow shortfalls, live more comfortably, and not have to sacrifice their lifestyle to do so.
This is an area of potential fee revenue growth for credit unions. Many members view their credit union as a trusted source for financial planning ideas and the tools to make it happen. Adding a reverse mortgage program to the product mix benefits members by giving them the ability to work with their financial institution to secure a reverse mortgage that best fits their unique needs. It also benefits the credit union by increasing wallet share for these borrowers and their families as well as increasing fee revenue potential.
Potential reverse mortgage customers need to understand all the possible scenarios concerning the proceeds made available to them through a reverse mortgage. This can be facilitated by the credit union as well as recommending that borrowers speak with their family financial planner as to where to allocate their new-found money supply to a place that best serves their needs.
Examples of how to allocate the new money supply include funding a new savings account for emergencies, reducing monthly expenses, and using the funds to purchase additional life or long-term care insurance to minimize the financial burden on relatives.
As the economy continues to stagnate, people from all walks of life are looking for new financial tools to ease the burdens they now encounter. As a credit union, being able to offer your members a reverse mortgage program not only helps their personal financial condition, but can substantially increase fee revenue as well.
AnyHour Solutions is a highly flexible provider of comprehensive, 24/7 call/contact center services for financial institutions. Highlighted by the most experienced staff of agents and a turnover rate under 10%, its contact center goal is to provide “Service They Will Remember.” In addition, AnyHour provides online loan application capability as well as a full suite of mortgage and reverse mortgage processing services. For nearly 20 years, the company has helped its clients to enhance member service, increase loan volume and reduce operating expenses. For additional information contact Steven Holmes, VP Strategic Development, at 888.622.8696 or sholmes@anyhoursolutions.com. www.anyhoursolutions.com
