As predicted, it’s another recording breaking year for reverse mortgage volume- it’s official. Over 76,000 reverse mortgages were written in fiscal 2006. In contrast to 43,121 loans in fiscal 2005, that’s a 77% increase. That’s quite a number for a loan product that is still considered to be in its infancy, barely a blip on the radar screen to many loan officers.

If you haven’t done so already, it’s time to sit up and take notice of this innovative loan that can change the lives of your clients, and change your business in the process. Let’s take a look at some recent data, and see if you will decide to get “ready in reverse”.

The first of the 77 million baby boomers in our country (those born between 1946 and 1964,) turned 60 years old in 2006. As with most things they have touched, they are going to have a dramatic impact on our economy as they age and move toward retirement. This is the largest generation in our country’s history and they are going to define retirement on their terms. Many site travel, purchasing vacation properties, and helping children and grandchildren as being part of their future. However, many of them admit they are not financially prepared for the lifestyle they want in their retirement years, and may have to continue working well past their intended retirement age. Are you missing the opportunity to serve this demographic as part of your overall mortgage planning strategy?

In addition, the National Council on the Aging has published a report that states that reverse mortgages could help nearly 13.2 million senior homeowners pay for the needed care that would make it possible for them to stay in their homes as long as they wanted. This study, called, “Use Your Home To Stay At Home: Expanding the Use of Reverse Mortgages to Pay for Long Term Care”, discusses how many seniors could benefit from the funds provided by reverse mortgages. It has already been shown that the vast majority of seniors want to remain in their homes as long as possible and the need for care either on a full or part time basis is often viewed as a barrier. In the absence of long term care insurance or other types of coverage, the reverse mortgage becomes the answer. Unlock that built up equity that would otherwise be doing little or nothing for the senior homeowner. Utilizing your expertise, you become the solution when you show them how to effectively use this equity.

How can the reverse mortgage fit into the overall picture for these baby boomers that are approaching retirement and those seniors who are already there? When you combine the easy qualification guidelines, the fact that reverse mortgage proceeds are tax free, and the desire of seniors to remain at home, the possibilities are endless. As the reverse mortgage product becomes more and more mainstream, it is clear that the demand for the product will increase for many years to come. New products as well as improvements to existing ones are on the horizon. According to Erik Anderson, National Sales Director for Seattle Mortgage-Reverse Mortgage of America, “The reverse mortgage market is in the process of dynamic change, and will be for the next few years. All of these changes will be for the good of the American senior. The emergence and innovation of new Reverse Mortgage products that cater to the needs of the American senior will be the key to success in the coming years.”

One thing is certain- your Realtor partners are hungry for reverse mortgage information. When you show them how a potential client can access tax-free funds from a reverse mortgage and use those funds toward a vacation property or second home, you have just cemented that relationship. You are helping them build their business in a way they have probably not heard about before. You will now be viewed as the expert, an innovator, and someone who really is a partner. Try speaking about reverse mortgages at your local board of Realtors (I teach a class for continuing ed once per quarter, go to www.reversemortgagepronews.com for details) and watch the reaction you’ll get. That is just one way to market this product- there are many, many more.

No doubt the next several years will also be record setting years for reverse mortgage volume. As the population ages, the recent changes to Medicaid take effect, and the need to use equity as a financial tool in the retirement years becomes evident, the reverse mortgage will become the natural product of choice. Many savvy financial experts are already including discussions about reverse mortgages in their overall planning strategy. There is even a reverse mortgage product that targets the affluent senior. Imagine showing your client who is sitting on a home valued at $2 or $3 million how they can access tax free funds and never make a mortgage payment! No longer is this a product only for the destitute.