A reverse mortgage specialist is a finance professional who specializes in providing reverse mortgage products. He or she may work for a bank, handling reverse mortgages for the bank's customers, for a broker who helps people find loans, or for an organization which provides information and assistance to people who are considering a reverse mortgage. The requirements to become a reverse mortgage specialist vary, with most having some training in the financial industry which includes specific training in mortgage products.
Reverse mortgages are primarily taken out by the elderly, and some banks may actually limit their reverse mortgages to borrowers over 62. With this type of mortgage, the borrower receives payments which are deducted from the amount of equity the borrower has in the home. The amount of the payments cannot exceed the value of the home, and most reverse mortgages are also only available if there are no other liens on the property.
Once the borrower leaves the house, the house must be sold to repay the mortgage, or heirs and family members can redeem the mortgage, either in cash or by using a mortgage to finance the repayment of the reverse mortgage. Reverse mortgages are classically used by elderly people to ensure that they have a steady source of income in their old age; the advantage is that unlike a home equity loan, no payments are required from the borrowers.
Reverse mortgages can be complicated, and a reverse mortgage specialist needs some special skills to work successfully with clients. Because reverse mortgages are based on the available equity in the home, creditworthiness of the applicants is not terribly important, but lenders do need to think about issues such as the potential for a decline in value of the home which could force the bank to take a loss, along with the age and health of the applicants. Reverse mortgage specialists are also able to offer information about other financial products to help their customers select the best option for their needs.
These professionals tend to work in urban areas, where a reverse mortgage specialist can find plenty of work because the population is large. They may also work in smaller communities with a large elderly population. Many can provide assistance over the phone for customers in rural areas who need reverse mortgage products or information. Like other mortgage professionals, a reverse mortgage specialist must be able to balance the needs of the bank with the needs of the customer to develop a mortgage which will be suitable and low risk.