As demand for reverse mortgage increases, inexperienced brokers can take payday notes from some who has been doing it for years, Scott Tucker

By Brandon Humphrey


Texas is the latest example of a state whose citizens are adopting reverse mortgages more and more. On Sept. 8, the Texas Mortgage Bankers Association and MRMLA held its 10th annual Reverse Mortgage Day, an event for mortgage lenders, secondary market experts and bank executives from across the country. The professionals discussed policies that will affect reverse mortgage lending in the future.

Texas became the second largest reverse mortgage lending state since it began offering the plans 11 years ago, and it shows great potential for increasing the volume over the next 5 years.

Because of the economic recession in the nation during the past few years, reverse mortgages are gaining attention and popularity as an option for senior homeowners who have low or fixed incomes with large mortgage or medical expenses. However, reverse mortgages have been around for a while, and although some institutions are just now beginning to realize their significance, some brokers realized it a long time ago.

Scott Tucker, a Chicago-based mortgage broker and loan officer, first noticed the potential in reverse mortgages more than two years ago. He had been promoting a mortgage marketing system he developed when reverse mortgages caught his eye, and he decided to become an expert. He has since made radio appearances to discuss, inform and educate people on reverse mortgages, he has held workshops for the same purposes, and he even wrote a book titled, "Reverse Mortgages: what you need to know from Z to A."

Tucker has educated and converted scores of people on reverse mortgages, dealing with clients who say his services have allowed them to move forward in life with confidence and clarity. But of course, for the nation to fully realize the benefits of reverse mortgages when they are applied correctly, brokers in other states need to take after Tucker and promote, promote, promote. Not only do people need to be educated on the way reverse mortgages work, but they need to be assured that the risks associated with reverse mortgages are unlikely to happen to them.

When used correctly, a reverse mortgage can provide a senior with desperately needed income to help with medical bills or mortgage payments. However, when brokers carelessly try to sell reverse mortgages for families who have moderate income or who plan on moving several times in the future, the financial plans often result in foreclosure, eviction, and debt. Elderly people who fear these results with their own reverse mortgages need to be consoled and assured that a reverse mortgage is preferable in their situations. Tucker can also be of help in that regard; he built his real estate career on his relationships with clients, opting to develop his client base under the radar rather than targeting the general mainstream. He sent precisely targeted messaging to niche markets he knew were already likely to do business with him, and used his own unconventional approach and personality to secure the deals. In the same way, for reverse mortgages to work, there needs to exist a likely chance the plan will work for the client, and then, depending on the client's income level, debt and lifestyle, the explanation of reverse mortgages should be tailored in order to respond to the particular individual's needs.

With reverse mortgages expected to take on greater significance, the presentation, education and approach of selling the mortgages needs to be carefully developed. Experienced professionals like Tucker can help to promulgate successful methods for reverse mortgage.




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