How are reverse mortgage originators paid?

Brokers do collect fees for selling reverse mortgages. They are supposed to receive an admittedly small maximum of 2% of the origination fee on a loan insured by the federal government. read more

The fee received by the reverse mortgage broker covers the originator’s salary, the processor’s salary, overhead for the business such as computers, office supplies, copiers, health insurance for employees, taxes, licensing, marketing expenses, etc. Originating a loan is not charged by the hour but this gives an idea of the hours involved for the originating and processing reverse mortgages. read more

When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you – a kind of advance payment on your home equity. read more