Ethics

Ethics

 Ethics. It is the first and most important aspect to consider when entering the arena of reverse mortgages.

It is also the cornerstone of Reverse Focus mission. Our objective is to train originators to transition from "selling" to serving our senior clients with the highest level of ethics and care.

It is no secret that reverse mortgages are on the cusp of becoming a major growth segment in the mortgage investment industry. Significant mainstream news coverage has heralded this new offering as a vital resource that helps our aging population live the life they want by drawing on their home equity. Demand has naturally increased as a result, but with that demand must come a financial community prepared to handle the challenges and sensitivities required when doing business with elderly prospects and clients.

Any field that could potentially exploit seniors calls for individuals working in that field to be conscious of its treatment of clients. The motivation to pursue success in reverse mortgages - an exciting financial services niche ripe with opportunities - must be tempered by an integrity that places the dignity of the client above all else.

That's why it's more important than ever to ensure that regulations and procedures are followed to the tee - regardless of complexity. Standards must be set and consistently met if we are to see continued growth in an industry poised to become a great benefit to society. The recent subprime loan scandals have only amplified the scrutiny reverse mortgages receive: consumer groups and government agencies keep a close watch, and so must we.

Reverse mortgages can be both a challenging and rewarding field. As you assist your clients in determining if a reverse mortgage is right for them, following the guidelines below will ensure the experience is gratifying for all parties involved:

• Respect the dignity of prospects and clients
• Disclose all terms and conditions associated with reverse mortgages to clients, including the inclusion of third parties involved with the process
• Relay information clearly; it may be required that information be stated more than once, and update clients regarding any changes that may affect their loans
• Be as open, courteous and communicative as possible; the prospect of entering into a reverse mortgage can be a daunting one
• Safeguard your clients' privacy; do not disclose personal information to third-parties for any reason without explicit permission from the client
• Do not coerce prospects or clients into doing business with you
• Inquire about family members or lawyers, those the client may want brought into the decision-making process

If you are interested in a more comprehensive listing of guidelines, we recommend reading the Code of Ethics outlined by NRMLA:

http://www.nrmlaonline.org

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