How to Get Started Selling Reverse Mortgages

September, 15 2016

If you are looking to capitalize on the lucrative field of reverse mortgages, the onus is on you to give your team the tools and the information they need to thrive. To make reverse mortgages a profitable niche of your business, you team must be armed with specific information. Armour Title Company is here to help.


Only certain people are allowed to apply for reverse mortgages, and only some will actually benefit from one. Eligibility is restricted to people 62 years or older that own their own home. Reverse mortgages can be taken out on single-family homes, 2-4 unit properties, manufactured homes built after June 1976, townhouses, and condominiums, but NOT co-ops.

Ideal Borrowers

Lenders and loan officers must be familiar with the borrower’s finances – and their ability to pay things like property taxes and homeowners insurance – in order to give sound advice. They also must understand the borrower’s intentions. If they plan on leaving their property in several years or leaving it to their children, a reverse mortgage is probably NOT a good idea.

Know the Counselors

Reverse mortgages are the only financial product that require the prospective borrower to attend a counseling session approved by the US Department of Housing and Urban Development. These are either face-to-face or over the telephone. Loan officers are NOT allowed to direct prospective borrowers to specific counselors, but instead must give them a list of options. Have a list of approved counselors ready to go, and providing them with clear next steps to follow after their session, will increase the chances that they return to you – not a competitor.


Forward mortgages are a sprint, and reverse mortgages are a marathon. Many potential borrowers may approach you for advice or information. Many won’t be ready to sign right away. Patience is key, and pressure sales should be avoided. Brokers and loan officers willing to put in the time and energy to educate consumers and make themselves a resource will get more reverse mortgage business – even if it takes six months or a year to get a commitment. Play the long game.

More on Selling ARMs can be found on another blog in The Lender’s Sales Center.

My goal as an attorney, successful author, motivational speaker, and the president of Armour Title Company is to give lenders and loan officers a hub of resources to increase their sales and expand their businesses.

All the best,

Tali Raphaely

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