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CHIP Sees Traction With Brokers

CHIP-Reverse-Mortgage25% of CHIP reverse mortgage originations have come from brokers this year, according to HomEquity Bank.

Last year it was only 15%.

There are at least five reasons behind this surge in broker referrals. Among them:

  1. Change: CHIP’s product has noticeably improved in the last few years—in both pricing and flexibility. In turn, the public seems to have a growing acceptance of, and need for, reverse mortgages. (Total originations grew 18% last quarter.) Being highly entrepreneurial by nature, brokers excel at educating consumers about new and revamped mortgage products.
  2. Ease: More brokers are discovering how easy it is to refer clients to CHIP. (It’s a simple referral form.) CHIP manages almost everything, including the application, approval and closing.
  3. Recent Promotions: CHIP is doing a better job of promoting its lower eligibility age (55) and higher loan-to-value maximum (50%).
  4. Competition: Some brokers are undoubtedly shifting some business to alternative products as traditional “A” lending gets more competitive.
  5. BDM Support: CHIP’s business development managers (BDMs) are incentivized and widely supportive of brokers.

Sidebar: Reverse mortgages are not meant to be an ideal product for the masses. CHIP is, however, a saviour for those with no better options—and that includes a growing percentage of cash-strapped seniors.

Rob McLister, CMT