Posted on 09/11/2010 1:14:44 AM PDT by 2ndDivisionVet
Despite reverse mortgage volume being down 40% from 2009, American Advisors Group (AAG) is looking to recruit more than 40 new sales officers before the end of the year.
“We believe there is no better time than right now to begin an aggressive recruiting campaign to increase our sales floors and take advantage of current market conditions,” said Reza Jahangiri, AAG’s CEO. “The success of AAG’s national marketing campaign featuring Former Senator Fred Thompson combined with our recent compliance, licensing and technological implementations, has paved the way for our expansion plans.”
The company is conducting a job fair to grow its workforce with plans to complete all of the training and licensing requirements by the end of the year.
“AAG ensures every sales professional is thoroughly trained and licensed before assisting any borrowers. It also ensures continuity with our sales process and best serves our clients,” Jahangiri added.
The Irvine, CA based company volume for 2010 is up 7% according to data from Reverse Market Insight. AAG has endorsed 417 HECMs during the year, making it the 14th largest reverse mortgage lender in the country.
As the economy worsens, these predatory lenders will grow. 90% of the folks getting these mortgages have NO idea that it destroys all the equity of their children’s inheritance, and worse, if they do not die soon, the bank will simply foreclose when the money is gone, and they will be homeless AND broke.
I think you misunderstand reverse mortgages:
Top Ten Things to Know if You’re Interested in a Reverse Mortgage
http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm
No, believe me. I understand it exactly.
And I do not think there is a mortgage product which I more despise.
You didn’t click on the link, did you?
Of course I did. But I have worked in banking for more than 10 years. I began in the file room and loan document review as a part time clerk in my teens, working mostly summers. Later I became that department’s team leader, then supervisor. Finally I graduated law school, with a history and finance degrees, and now I do compliance and purchasing review. I could not be more versed in these uhm,”loans”. I could not be more opposed. Although they are incredibly profitable.. for the lender and broker... they are horrific for the customer. They make pawn shops and check cashing places look honorable.
I’ve heard there are big fees with these reverse mortgages but other than that I’ve heard that people are really happy with them.
What exactly is it that you don’t like?
I do not like that they are not explained to people and that the target is the very old whom the bank actually predicts will DIE just before the property runs out of the lower appraised value for which they have taken out this mortgage.
Sure the living customer likes getting a check, especially if they have medical bills and did not save or plan accordingly, but DO have equity in their home.
It is not the fees that are bad, although they are... it is the very idea which is bad.
As an return on your investment, they are horrific ideas. You would have been better off to have taken out a NEW full mortgage and put all that cash into stocks or investments and drawn off that, than to have paid 400% of the value of your home for 30 long years of compound interest, only to have your bank “sell it back to you” at 1/4 the value. It is a terrible trade.
Any serious investor or financial adviser will tell you so.
Now, of course, the lenders will say, “but what else is poor granny going to do” “we have worked hard to make a product to fill her urgent needs”. Yeah. You have. And you seek out death bed grannies to offer them cash and know that your collateral is rock solid and that there is no way out until she is dead.
Google it. Others have written about it far better than I can do on the cuff at 4am.
I agree with you. My father in law did this - what a nightmare after he passed away. He thought it was great - Free money - he didn’t have to deal with it after he died - we did and it wasn’t pretty.
“what a nightmare after he passed away. He thought it was great - Free money - he didn’t have to deal with it after he died - we did and it wasn’t pretty.”
I agree with both of you....interesting to see McCain’s boy, Fred Thompson getting in on the action.
I am so sorry to hear about that situation. Of course, I see it from the other side. We buy banks who made these loans and we buy servicing from brokers who make these loans. Sadly, it is not up to me to say we shouldn’t do it. It is only my job to see that our ass is covered when we do and that if it comes to litigation we are able to recover all our assets and investments without regard to the position in which that may or may not put the estate or heirs.
Thanks for the insight!
Seems to me right now you could use a re-fi to get cash and then practically double your money (not counting tax implications) by investing in dividend paying stocks - like AT&T - and still keep the house and the stock.
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