If you are a home owner in the process of applying for a reverse mortgage, take my advice and ask the lender for a discount. I have been in the reverse mortgage business for almost ten years now and I’m still amazed to see customers being charged full retail lender fees. I have been repeatedly contacted by customers of Wells Fargo Bank and others who have decided to shop around before closing their loans. They are usually shocked to find that I can offer most customers SUBSTANTIAL discounts on fees. This is money that would end up being paid to the bank as an origination fee and then added to the customer’s loan balance at closing. My discounts go right into the customer’s pocket keeping the overall closing costs lower and the beginning loan balance lower as well.
If you are a lender and want to complain about this post, simply consider the following. The new good faith estimates should be a warning to you that you do have the potential to overcharge the customer but you should not do so, simply because you can. Don’t try to tell me how much work you have to do for some borrowers, I’ve done over 500 reverse mortgages and I’ve driven hundreds of miles to see many of them. Our industry would not be under as much scrutiny if you would just stop to consider how dangerous it is for you to charge to the maximum to every customer that comes in the door.
Wells Fargo does not make it a practice to discount anything to the borrower because they don;t have to. The customer simply doesn’t ask or if they do, their request is denied. I would love to have all of their customers, or any big (bailout) bank customer call me for a competing quote. I’ll make sure you get a discount and let you show it to them, in writing.
Michael A. Manfredi is a Reverse Mortgage Specialist
(800) 507-2080
(602) 507-6527
(602) 456-0009
