Credit Union Magazine - January 2009 - (Page 28)

one.” Another product might be a better option. For example, he says, if a member plans to move within five years, a reverse mortgage isn’t a good choice because the member must repay the loan when the home is sold. Since the member is unlikely to recoup closing costs, a home equity loan may be a better choice. Greater awareness of reverse mortgages helps in the education effort, says Boucher. The Internet, magazine and newspaper articles, and friends inform members about reverse mortgages. “You’d be surprised how many have done their homework,” he notes. Few members who attend ask what a reverse mortgage is and does. “They already know.” After marketing and promoting reverse mortgage availability, many credit unions hold seminars to promote the product and answer members’ questions about the process. Retirees’ family members often attend, too. “You want members to be comfortable with the process and to trust you,” says Wetterlin. Decisions aren’t made overnight. The sales cycle on a reverse mortgage typically is a long one, which she calls a “percolation period.” Credit unions need at least to start percolating the idea of reverse mortgages, because members increasingly will ask for them, predicts the CUNA Lending Council white paper, “Reverse Mortgages: A Product Poised for Exponential Growth.” “It’s important that credit unions consider offering this product, so members don’t have to look elsewhere,” says Seltzer. “Baby boomers are approaching retirement age, and many will need to access their home equity, but not with a home equity product where they have to make monthly payments.” Boucher believes reverse mortgages will grow in popularity. “If expenses keep rising at a much higher rate than pensions and Social Security, [members will] be looking for other ways to supplement their incomes.” Resources u American Credit Union Mortgage Association, Las Vegas: acuma.org. u CUNA: 1. 2009-2010 National Member Survey Report, buy.cuna.org, enter 28532 in the product ﬁnder. 2. CUNA Lending Council white paper, “Reverse Mortgages: A Product Poised for Exponential Growth,” cunalendingcouncil.org, select “tools and resources.” u National Reverse Mortgage Lenders Association, Washington, D.C.: www.nrmla.org. Mortgage Fest 2009 At no time in history have credit unions seen a better time to build their mortgage business. Don't miss the premier mortgage conference to learn how you can increase market share. Register today! CU Members Mortgage 13th National Lending Conference March 1-3, 2009 Fairmont Hotel Dallas, Texas www.cumembers.com 800-607-3474, ext. 488 28 CREDIT UNION MAGAZINE ÑJANUARY 2009 Ñcuna.org http://www.acuma.org http://buy.cuna.org http://www.cunalendingcouncil.org http://www.nrmla.org http://www.cumembers.com http://www.cumembers.com http://www.cuna.org

Table of Contents Feed for the Digital Edition of Credit Union Magazine - January 2009

Credit Union Magazine - January 2009 Contents On My Way Leading Edge Spotlight President's Perspective Game Plan Washington Insider Wright Stuff Executive Suite Reverse Mortgages Come of Age Six Merger Myths Leading-Edge Lenders TwentyFour/Seven Bankruptcy Compliance Tools of the Trade Trendlines Rates & Ratios Council Corner Shoptalk System Scan Marketplace Branching Out Advertiser Index

Credit Union Magazine - January 2009

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