Despite misconceptions, he feels they should be a major part of the mix
It’s something of a sign of the times as one growing Texas firm has bolstered its reverse mortgage division – a move emerging as consumers seek alternative products, while banks become more risk averse.
Austin-based Open Mortgage, a national multi-channel mortgage lender, recently announced the hiring of Mike Hicks (pictured left) as national director of reverse sales. According to a corporate announcement, Hicks was formerly the reverse mortgage sales manager at Fairway Independent Mortgage Co. Hicks also has had management roles at 1st Nations Reverse Mortgage, Willow Bend Mortgage Co., Willow Bend and 1st Reverse Mortgage USA.
Reverse mortgages are really moving
“Open Mortgage has really ramped up its reverse lending in recent years, and you can see it in the scorecard,” Hicks said in a prepared statement. ”What excites me is the opportunity to come in and collaborate with a group of seasoned originators and deliver the training, tools, and support they need to take their business to the next level.”
Hicks touted the lender’s business model, noting its ideals match his own. “There’s a commitment shared between myself and Open Mortgage leadership to both give our originators a platform where they can succeed while continuing to deliver on the vision and mission for our customers to experience the best possible retirement by utilizing their home’s equity,” Hicks said.
CEO going full steam ahead
Mortgage Professional America reached out to Open Mortgage’s founder/CEO Scott Gordon (pictured right) to assess his enthusiasm for the reverse mortgage market. Despite market shifts, he’s all in – even if it sounds counterintuitive.
“The combination of the latest interest rates and limits on loans have just made it harder for reverse mortgages to qualify,” Gordon said. “But for us, we’re more forward than reverse, but the reverse division is kind of integral to us. We kind of like having both.”
Another challenge is a lack of understanding. He said more loan officers should understand the reverse mortgage landscape given its dynamics – including being the type of product that yields referrals. “You need to get more loan officers,” he said. We can’t just be trying to recruit the same twelve people from each other.
And he acknowledged that early marketing centered on reverse mortgages in the past did a disservice to the product, leaving some to think elderly clients were in danger of having their homes taken from them. “There are these myths that persevere that when you get a reverse mortgage, you lose your home.”
Still, he’s going full steam ahead on the product. His reasoning is succinct: “I figure while we’re in a slow year, we might as well upgrade,” he said. “It might be harder when things get busy again.”
In announcing the Hicks hiring, Open Mortgage thanked his predecessor, Patty Wills, who spent seven years at Open Mortgage before capping off a 30-year career.
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