Center Stage with World Alliance Financial Corp

by 01 Apr 2008
If you are trying to survive in this market there is no better niche to jump into than Reverse Mortgages. This month we bring to you an industry leader in the Reverse Mortgage market ? World Alliance. Find out more about their company and how they?re helping forward mortgage originators join in on an expansive, growing niche. ? Tell us about World Alliance Financial and the services the company offers. World Alliance Financial is one of the leading innovators in the reverse mortgage industry and the third largest originator of reverse mortgages in the nation. The company provides comprehensive lead-to-close loan services to a nationwide network of mortgage companies through marketing, lending, education and technology solutions. World Alliance Financial educates consumers on the unique aspects of reverse mortgages through the Senior Lending Network, our national consumer education campaign. Mortgage companies who do business with World Alliance Financial are provided with a dedicated account manager for ongoing reverse mortgage training and excellent customer service to guide them through the reverse mortgage process. In addition, World Alliance Financial offers technology that allows brokers to track their progress, generate reports and access resources to process and close loans. ? Explain the difference between forward and reverse mortgages, and what the benefits are of reverse mortgages. A reverse mortgage is a special type of loan that enables senior homeowners to convert a portion of the equity in their home into cash, and most reverse mortgages are federally insured. Unlike a traditional ?forward? mortgage, there is no repayment required of the borrower until they no longer use their home as their principal residence and, at closing, all prior liens on the property must be paid. Additionally, there are no income, medical or credit requirements for a reverse mortgage. To qualify, a borrower must be 62 years and older; the home must be their principal residence; and it must be a single family residence, two-to-four family unit dwelling, condominium or part of a planned unit development. There are many benefits from a reverse mortgage for senior consumers. As long as the borrower lives in their home, there is no repayment of the mortgage and the funds they receive are tax-free. Under the condition that the borrower maintains their home and pays insurance and real estate taxes, they retain ownership of their home for life. A borrower could use the proceeds to pay bills, plan a vacation or pay for any of life?s expenses. ? What do you offer to help non-FHA brokers enter into the reverse mortgage industry? World Alliance Financial offers a unique opportunity for non-FHA brokers to step into the reverse mortgage industry. Our HECM Advisor Network is a program that invites non-FHA brokers to examine new and different ways to expand their product offerings to clients by including reverse mortgages. The HECM Advisor Network offers brokers a way to complement their current client product offerings with our HECM Advisor Network platform. The platform is designed to integrate seamlessly into brokers? core business models. Through the HECM Advisor Network platform, World Alliance Financial trains state licensed non-FHA brokers who currently operate in the forward mortgage business on how to enter the reverse mortgage industry successfully and how to maximize their client base by incorporating this additional service into their business. Brokers who participate are provided with personalized attention from an account executive who will support them through the entire process. ? What products do you offer and how do you determine how to place a senior borrower in the right reverse mortgage product? World Alliance Financial offers a variety of products, ensuring the senior consumer is placed into the mortgage appropriate for their lifestyle. Non-FHA brokers join our program and often leverage our platform to grow their business and even transition to FHA broker status while being sponsored by World Alliance Financial. In addition to offering a fixed rate HECM and HECM products based on the LIBOR index, we offer three other products unique to World Alliance Financial. Our Simple60TM product* allows borrowers age 60 and older to apply for a reverse mortgage, instead of the minimum age of 62. The Flex-Margin Advantage* product line allows brokers to adjust the margins to find the best deal for their borrowers. World Alliance Financial offers the Equity Plus Advantage* product, our jumbo reverse mortgage for borrowers with higher value homes. The Simple60 is unlike any other reverse mortgage product. Reverse mortgages are traditionally reserved for borrowers age 62 and older, so by extending minimum age limit for a reverse mortgage, World Alliance Financial has expanded the market and allowed additional consumers to experience the benefits of a reverse mortgage. In addition, traditional reverse mortgages require both spouses to be 62 or older to take out a reverse mortgage. With the Simple60, if one spouse is between 60 and 62, the couple is still able to obtain a reverse mortgage. This proprietary product also allows seniors over the age of 62 the opportunity to borrow a smaller amount of money with lower closing costs and reduced fees. The Simple60 product benefits homeowners who are eager to access their equity earlier and provides lower closing costs than a traditional HECM reverse mortgage. The Flex-Margin Advantage provides brokers with the ability to restructure rates and loan terms on monthly HECM reverse mortgage loans in order to better fit the needs of their customers. The product line allows a broker to design a loan based on the borrower?s needs, and reduce closing costs by balancing the loan rate. The Equity Plus Advantage reverse loan product is World Alliance Financial?s jumbo product, expanding on our current line of HECM loans and pricing options through the Flex-Margin Advantage Program. Seniors with higher home values are able to access greater amounts of their home equity than with traditional reverse mortgages. Home values are greater than the congressionally mandated cap for many of areas of the country due to the rise in home values in recent years. The home valuation cap for the Equity Plus Advantage product is $2.5 million. ? You were recently acquired by KBC, can you tell us about the recent acquisition and what it means for World Alliance Financial? KBC Financial Products, a subsidiary of Belgian-based KBC BANK NV, acquired World Alliance Financial in August 2007. KBC Financial Products is a market-leading specialist in equities and equity, credit and fund-linked derivatives and structured credit reports, thus offering products and financial strength, and World Alliance Financial is a leader in marketing and distribution. This synergistic relationship has produced a positive change in the type of reverse mortgages that are being written today. KBC Financial Products brings their strength in the capital markets and World Alliance Financial provides the products and expanded distribution channels resulting in a broad offering and wide array of reverse mortgage products across the nation.? ? How would you recommend a broker in the forward mortgage market get started in establishing a reverse mortgage business? By establishing a reverse mortgage business, forward mortgage brokers can expand their offerings and reach out to the growing senior market. Reverse mortgages are experiencing rapid growth in the industry, and with the compelling demographics of the aging baby boomers combined with market dynamics of the retirement lifestyle, senior consumers can use the equity in their home to help pay for various life expenses. Over the next 20 years, approximately 72 million baby boomers will turn 62. As life becomes more expensive, reverse mortgages provides seniors with an opportunity to use the equity in their home to help pay for expenses and improve their quality of life. Making a successful transition from forward to reverse mortgages requires a thorough understanding of the differences between the types of mortgages, business processes and the senior borrower. Brokers must look at their current leads and current pipeline for potential reverse mortgage candidates. Are there borrowers who are retired or are 62 years or older? Are there borrowers who brokers are having trouble placing in a loan or have problems with their income? By examining the current pipeline and leads, brokers can discover many borrowers are ideal candidates for a reverse mortgage. Brokers who are interested in the HECM Advisor Program can contact us at 1-866-746-1790 or ? How will World Alliance Financial keep ahead of the rapidly changing technology and mortgage environments that are inherent to your business? World Alliance Financial continues to add additional products to address the expanding reverse mortgage market. As the forward mortgage market struggles, the reverse mortgage market is flourishing and becoming more and more popular. We will continue to add and enhance our offerings keeping in mind how we can best fit the borrowers needs as the baby boomer generation turn 62 and the market increases in size. Our company strives to stay ahead of the competition with unique products found only at World Alliance Financial. We are the only provider offering a reverse mortgage product for seniors age 60 and older, and our Flex-Margin Advantage program ensures the best pricing for consumers while enabling brokers to close more business. World Alliance Financial will continue to provide education for brokers who strive to enter into the reverse mortgage market, as well as educate senior consumers through the Senior Lending Network on the value of taking out a reverse mortgage on their home. Reverse mortgages are still a relatively new business, and we will continue to educate both brokers and consumers on the benefits of this financial tool. * Simple 60TM, Equity Plus Advantage, Flex Margin Advantage products and other proprietary products are currently available in select states.