Brokers who only offer conventional products are leaving a generation behind, exec says
One lending executive who has spent decades in the reverse mortgage and equity lending space said those homeowners need assistance but can’t get it if a loan originator doesn’t offer the products that can help them.
David Peskin (pictured top), president and CEO of HighTechLending, said the product focus most brokers have adopted by default is leaving a large portion of the market untouched.
“They need to be sort of agnostic as to how old the borrower is,” Peskin told Mortgage Professional America. “A lot of them are focusing on younger borrowers. But what about all of the homeowners that are out there that nobody is paying any attention to that really need to access the equity in their home?”
‘Multimillionaires on paper’
Peskin said many of these borrowers have significant net worth, including their home equity, but simply don’t have the cash flow that allows for conventional mortgage qualification.
“We’re coming across people who are multimillionaires on paper, right? Equities, stocks, bonds, but there is no cash flow,” he said. “And again, this is a perfect opportunity for them to tap into the equity in their home versus selling off some of their retirement funds or even selling their home and incurring capital gains. So there are also estate planning purposes for this.”
