Daily News

MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

Reverse Mortgage Leads

As the term `semi-exclusive reverse mortgage leads' would suggest, these are reverse mortgage leads that function somewhere in between exclusive and non-exclusive leads. The lead provider sends exclusive reverse mortgage leads to one lender at a time, and non-exclusive mortgage leads to several lenders at a time. Many mortgage providers restrict the number of loan officers, for instance 4 or 5, to whom they send any leads. Such leads are known as semi-exclusive reverse mortgage leads.

These leads don't enjoy the 100 per cent confidentiality that is associated with exclusive mortgage leads and that is because more than one person accesses the loan request information that is provided by the borrower. This is bit of a disadvantage but then, the above circumstance brings in some competition, unlike in the case of exclusive reverse mortgage leads.

This fact brings down the cost price of the lead and this is an advantage. In exclusive reverse mortgage leads, as there is no question of competition, whatever fees that the lender charges usually work out, thought not necessarily all the time. On the other hand, in non-exclusive reverse mortgage leads, several lenders have access to the lead. This leads to a competition among the lenders [loan officers] and this situation can be a plus point for the Borrower, as he or she can bargain for lower interest rates on the reverse mortgage loan.

So in effect, semi-exclusive reverse mortgage leads are balanced in terms of advantages and disadvantages and for this reason, this type of lead is gaining popularity in the mortgage industry. The golden rule to follow in semi-exclusive reverse mortgage leads, as in other types, would be to look for the most important factors in the lead: price, speed and quality. If all the three are satisfactory, these leads are near ideal.

Back to Articles