Credit.org deploys a new inverted mortgage platform

Online reverse mortgage academy

Credit.org's Reverse Mortgage Academy aims to “allow you to understand with confidence the advantages and risks of an inverted mortgage, allowing you to make informed decisions on your financial future”, declared the organization about its offer.

To better understand what the company hopes to accomplish, HousingwireThe inverted Mortgage of the Daily (RMD) spoke with the director of innovation Robin Hillary.

Hillary said that the company has organized reverse mortgage consultancy sessions for years, but the potential need for such a product has increased despite a constantly low adoption rate. While non-profit consulting organizations are generally at the end of an reverse mortgage workflow, the new academy aims to return this, she explained.

“The reverse mortgage academy (…) places our services at the start of an owner's trip to understand, from an impartial source, what an inverted mortgage is, if it suits them and to the advantages and disadvantages,” said Hillary. “All these things help them become more educated about the product before talking to a lender.”

For lenders, it has the potential to generate a warmer advance. A potential borrower who has followed the course has a higher level of understanding of the requirements, obligations and other attributes of the loan, she said.

“At this stage, understanding the product is already more complete, and now is time to go into details,” she said. “This is really why we thought there was a clear niche in the way in which the reverse mortgages are presented to consumers. Today, this model does not produces around 2% of owners who are ready to examine an inverted mortgage, or to convert into one. »»

On the part of Credit.org, he believes that an educated consumer of the eligible age who is willing to listen to the details of reverse mortgage products is “a more important target market, especially when you think of the economy today and how he has an impact on seniors,” said Hillary.

Credit.org is also in a unique position to potentially strengthen reverse mortgage adoption due to its non -profit organization status. Hillary said that she also had a commitment to provide more objective information on loan products and what they involve for potential borrowers.

The landscape of estimated penetration of 2% on the wider mortgage market “puts a non-profit organization in a very good position, because a large part of the skepticism comes from the moment when the reverse mortgages have come out for the first time, and the poor reputation they have acquired,” she said. “Credit.org does not care whether the person ends up withdrawing a reverse mortgage or not.

“Our single goal is to ensure that the consumer is well educated on the product, and that, from a non -profit base, is really a safe place for consumers without any pressure.”

Advantages of the educator of non -profit products

After absorbing the course of online learning, a “student” can then choose to go ahead and carry out a cost advice session that are friends, family or other trusted advisers encouraged to assist.

“I think that being a non-profit organization presents a whole new way of looking for an inverted mortgage, where it begins at the start of the trip, and we will also be there at the end,” she said. “So, if they decide to go to a lender and to withdraw this reverse mortgage, Credit.org, as well as all the other non -profit organizations, are there at the end to provide HUD certified advice.”

The course is Available online In English and Spanish, and it gives priority to interactivity to maintain the committed user. Hillary has said that interactivity often serves as a means of overcoming the potential technical obstacles to which certain older customers may be confronted.

At the end of the day, Hillary added that the simple fact of understanding more people to understand the details of an inverted mortgage can be a powerful tool to close the massive gulf that exists between reverse mortgages and traditional mortgages.

“The reverse mortgage industry has an excellent product, especially during economic uncertaintyBut they have to innovate and try new ways to start consumers to exceed the conversion rate of 2%, “she said.” I believe that this new model will benefit the industry as a whole, because having an educated consumer traditionally leads to a higher conversion rate. “”