Bank of America has now made it public knowledge that they are no longer going to do reverse mortgage. The bank will continue to service its clients that do have these mortgages, but they have decided that they wish to focus on other areas of lending.
Reverse mortgages have been a mystery to many, mainly because the profile of the reverse mortgage borrower tends to be senior adults. Servicing for the seniors that currently have this loan need the proper servicing and I think they understand this. Just because a bank no longer offers a program doesn’t mean that they should ignore the customer they did business with. You have to finish what you start.
Many companies, like Bank of America have lost sight of what is important, and started delving into too many other things like insurance, and auto loans. My personal opinion is that if you are going to be a mortgage company, then be a mortgage company. That way you can focus your efforts in the right area, and be known for what you do well. Those who do auto loans, should focus on auto loans, and work on offering stellar products to their consumers.
This is sort of like the Starbucks issue, where instead of great coffee, they decided to have coffee, then sell mugs and cds. Granted, I don’t drink coffee, and mugs and coffee go together, but getting into too much retail took the focus away from what they were really trying to do. So, the CEO was wise, and decided to go back to the basics. Maybe our mortgage companies should all do the same, and just focus on being better mortgage companies that take care of their clients.
-Mayer Dallal
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