What is the next question or "second question"?
Tuesday, 30 September 2008 16:00
Recently, a Reverse Sales and Marketing class turned into a very heated debate as I conducted “Loan Originator File Tips”. As the session went on, there seemed to be a lack of consensus in response to some of my questions. 


My purpose was to assist in avoiding processing and underwriting issues by encouraging Loan Originators to become more engaged in the interview process, thereby providing a more complete file at the time of submission for processing.

Regardless of the form of application (face-to-face, mail or telephone), I believe the next question or “second question” if not asked, in many cases, commences the Murphy’s Law process of “a poorly originated file results in a nightmare of a reverse mortgage transaction”.


Case(s) in point:
1. Your appraiser advises the 2 unit building being appraised is a combination store front and apartment. By the way, the borrower lives in back of the storefront on the 1st floor and the 2nd floor is rented – and yes, the store front is a bar. What question(s) didn’t you ask?
2. Your borrower is vested in a life estate. There are 7 remaindermen children – 1 is in the military serving abroad and another hasn’t been seen, heard or spoken to in 9 years, and yes, he was estranged from his spouse as the borrower recalls. What question(s) didn’t you ask?
As we eagerly wait for the implementation of changes to our industry and products, ushered in by HERA, it might be a good thing to sharpen our origination skills. While there may be some thoughts of a very active holiday season ahead after a quiet summer, the experienced will certainly take into account that operations and staffing cut backs in many areas may affect the ability to mend and repair a large number of poorly originated/processed files. It won’t be the first time lack of training and education have combined with Investor back room issues to delay some of the best efforts by Originators to provide timely service to their Borrowers.


So let’s play 20 questions!


This is a learning exercise. Your responses to these questions will be anonymously tabulated and reported in the next issue of The Reverse Review. Please e-mail your responses to
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. Please respond with your answer in the form of a question.
1. Your Borrower indicates they believe the value of their home is $250,000.00. What should you ask next?
2. When inquiring about property ownership, your borrower indicates as far as he or she knows, they are the only one on title. What should you ask next?
3. You have been advised that one of your borrowers will be represented by an attorney-in-fact. What should you ask next?
4. You have been advised that the spouse of your borrower is deceased. What should you ask next? What would be your “second question”?
5. As you arrive for your appointment at the borrower’s home, the property is located in the middle of the block surrounded by small commercial storefronts and vacant lots on a busy thoroughfare. What should you ask next?
6. The borrower and his/her daughter (age 47) are both on title. What should you ask next? If the borrower’s spouse were 47, would you ask a different question?
7. The borrowers are currently behind on their present mortgage. What should you ask next?
8. You are on the phone with the pre-qualified borrower arranging a time, date and location for the application session. What should you ask next?
9. Your subject property is a condominium. What should you ask next? Pose the “second question” based upon your previous question.
10. At application, your inspection of the borrower’s most recent mortgage statement indicates a preliminary payoff amount in excess of your pre-qualification calculation. What should you ask next?
11. The borrower provides you with a 2-inch thick living trust file. What should you ask next? Pose the second question as well.
12. At application you discover the subject property has a well and septic. What should you ask next?
13. Your borrower is unable to find his social security card. What should you ask next?
14. Your borrower indicates minor repairs are needed. What should you ask next? Pose the second question also.
15. The trusted advisor for your borrower requests an application by mail as the borrower conducts their affairs “slowly”. What should you ask next?
16. The address identification documents provided by your borrower do not reflect the subject property address. What should you ask next?
17. The borrower responds they have no mortgage. What should you ask next?
18. The borrower indicates they are seeking a reverse mortgage to purchase a smaller home. What should you ask next? Pose the second question also.
19. In discussion with the borrower, it is revealed that part of the proceeds will be used for “investments”. What should you ask next?
20. The borrower advises they have already completed counseling and are seeking an application appointment. What should you ask next?
Ralph Rosynek is President and CEO of 1st Reverse as well as a HECM DE Underwriter. Mr. Rosynek has been involved in mortgage lending for over 30 years with the last 5+ years exclusively providing reverse mortgage lending solutions. To contact Mr. Rosynek or to learn more about 1st Reverse Financial Services, Please visit www.1streverse.com or call 877-574-1000.
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