Ralph Rosynek, chief information officer and senior vice president of wholesale for Moneyhouse, joined Andrew Berman, head of engagement and outreach for National Mortgage Professional magazine, Monday afternoon to explore how Moneyhouse has been affected by the COVID-19 pandemic on the latest episode of the Mortgage Leadership Outlook series.
Rosynek is one of the most popular professionals in the home equity conversion or reverse mortgage sector. Before joining Moneyhouse, he worked as president for 1st Reverse Financial Services, HECM director for Reverse Mortgage Solutions, and held many other positions in the reverse industry. He brought his expertise to Moneyhouse where he is responsible for the development and launch of the company's U.S. continental forward and reverse retail, wholesale, and correspondent platforms.
Rosynek noted that now is a great time to look at reverse mortgages. “We’ve seen a big increase in our pipelines because of this,” Rosynek said due to the impact on retirement savings from drops in the stock market and a lack of a “rainy day plan” by many older workers.
Reverse mortgages used to be a preservation product, but it has become a universally accepted product, he explained. The pandemic brought about the thought process that “What if this happens again?” Reverse mortgages will help with a lack of available cash.
“It’s a rainy day fund,” for many working seniors, Rosynek added.
Other highlights from the interview:
►The difference between a reverse mortgage and home equity line of credit is interesting when values are fluctuating, Rosynek said. Most seniors might seek a home equity line of credit, but they can be frozen and stripped down. “Once your proceeds are determined … you’re guaranteed for the rest of your life that is how the proceeds have been allocated,” Rosynek said. “It does not diminish over time.” He pointed out HELOCs have been frozen or discontinued in the last few weeks.
►There is a shortage of loan originators who know the product well enough and can provide access of this product to seniors said Rosynek. “Only about 3.0% of eligible seniors in the United States have a reverse mortgage,” he said, adding reverse mortgages have a 97% origination potential.
►Originators who might be having trouble in the non-QM sector, for example, might consider broadening their opportunities by looking at reverse mortgages. “This is a mainstay product. There’s always going to be a need,” explained Rosynek.
►Reverse mortgage pricing was majorly affected for about two weeks after the pandemic’s onslaught because of the sheer response and quickness of the overall impact on the mortgage industry. Prices have continued to level, though. “This product is actually highly in demand and sought after by investment bankers because it performs so well as a portfolio, and there are safeguards,” said Rosynek.
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