Real State

When a reverse mortgage saves the client from foreclosure

After entering the mortgage business in 2003 following a career change in accounting, Rick Rodriguez was reading a book on credit that included a chapter on the reverse mortgage product. He remembered thinking this chapter was interesting and put it in his mind so he could look at the product further.

After asking his colleagues about the product they were offering, he was told they doubted he would ever be in a position to sell mortgages. But after receiving a nasty call from a potential suitor, Rodriguez looked deeper. This led him to experiences that convinced him that the product had a place in the broader mortgage ecosystem.

Today, Rodriguez is one of the leading mortgage originators VIP Mortgage and operates primarily outside of the Las Vegas area. He narrated his way into the business in an interview with HousingWireReverse Mortgage Daily (RMD).

You don’t forget the first one

At that time in the early 2000s, Rodriguez’s company did not offer retroactive loans. But when a prospective client reached out directly to Rodriguez — then in his early 20s — he enlisted his company’s help in building a relationship with a then-living mortgage lender. Financial Freedom. After expressing hope that he would be able to get a loan, the client decided to move forward with Rodriguez as his co-founder.

Rick Rodriguez, reverse mortgage specialist with VIP Mortgage.
Rick Rodriguez

“That transaction is still, to this day, probably the most impactful transaction I’ve ever had, and I’ve had thousands now in the last 20 years,” Rodriguez said. “Retreating is all I’ve been doing since then. The young man was in Chapter 13 at the time, had fallen behind on his credit card and debt, and was about to lose his house. “

He also had mobility challenges, so Rodriguez helped file court documents in conjunction with the remortgage process to file for bankruptcy. Finally, after a three to four month process, the loan was closed, the bankruptcy was paid early and the client’s debts were discharged.

This really touched Rodriguez. This set him on the path to the only repentance he has been on for 20 years.

“It was a job that changed this guy’s life, and it was the first loan I ever made,” he said. “When the dust settled, I stepped back and wondered what I should do?” And I realized that this was very powerful. I quickly realized that this is what I wanted to do in the real estate industry. This felt really good and I want to do more of this.”

In the end, Rodriguez credits this first experience with his decision to walk away completely to reverse his mortgage in 2005 – and he hasn’t looked back since. He may have changed companies a few times since then, but his involvement in the reverse mortgage business remains constant.

Submersible strength

One byproduct of that first-time experience combining all the opposites, he said, was that it really helped him become familiar with the flexibility of the product and how it can be used to meet customer needs.

“There is a lot of discrimination in this product,” she said. “People just take this product apart. I wanted to find out, was this just a coincidence, a one off release? Going deeper was an opportunity to see firsthand what the long-term implications would be.”

Rodriguez kept tabs on his subsequent clients and their circumstances — sometimes years after they closed, he said. Given the reputational challenges that credit defaulters have faced, he was initially concerned that he might start receiving calls from dissatisfied or worried borrowers, but this did not materialize, he explained.

“I saw for myself how this affects people,” he said. “I saw that it did what it was meant to do, and in the years that followed it involved family members and close friends in the production. But that first loan was the one that opened my eyes to the product, and along with the others after that, it really helped me to have more confidence in the product to see that it would really do what we needed it to do. “

Disruptive changes and looking ahead

Over time, the Reverse mortgage product has undergone a series of major changes, either by the way companies offer it or by changes in the programs offered by Federal Housing Administration (FHA). Rodriguez said that the most impactful changes are likely to be the creation of capital audits and the reduction of the principal limit factor (PLF) from October 2017.

Working with these changes over time has made them smaller and more familiar with how the product works, he explained. Although the financial audit was a difficult aspect to get used to, Rodriguez said he is now happy that it is okay.

“I think that maybe there were cases where people were put into loans that they didn’t have the ability to put in, or they didn’t have enough money or they showed the right to have credit to have any kind of money with them,” he said. . “So, it was a good idea, but at the time, that was a big change for us.”

Like many of his colleagues, Rodriguez feels optimistic about where the mortgage product can go.

“I’m still a very strong believer in what this can do, No. 1,” he said. “No. 2, the educational reach and awareness surrounding this product has increased more than ever. We have a lot of great teachers out there who are making people aware of this not just as a mortgage product but as a retirement tool.”

Whether it’s used to raise capital, complement retirement plans or involve multiple referral partners, Rodriguez is happy to see the product’s footprint.

“I’m really excited about those pieces in terms of continuing to talk about the brand, and getting more people to understand what it really is.”


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