Mid America Mortgage Plans to Expand Reverse Mortgage Business with New Hires

While they are the first to tell you that they are far from the largest active reverse mortgage lender, that has done nothing to diminish the ambition of the full-service mortgage lender based in Canada. Addison, Texas, Mid America Mortgage. and its objectives to expand its presence in space.

In the wake of the addition of industry veteran Dennis Loxton as the new national sales manager for the company’s reverse mortgage division late last year, Mid America has further expanded its ranks to appoint an employee to oversee its reverse mortgage operations on the West Coast.

Jarred Talmadge, recently appointed as Director of Reverse Mortgage Sales for Western Central America, recently spoke with RMD to discuss his history in the business, what Mid America hopes to achieve in expanding its presence in reverse mortgages to the domestic market and how the business will aim to differentiate itself from other larger lenders in the space.

History backwards and construction of a dedicated division

Talmadge in pot

Talmadge has been involved in the traditional mortgage industry since the mid-1990s, but went the other way in 2019 when he joined the ranks of the American Advisors Group (AAG) as a loan officer. Since then, he has become an adamant product advocate, occupying a series of different roles until he joined Mid America in October 2021.

Talmadge and Loxton have a common history having both worked at AAG in the past, and Talmadge thanks Loxton for guiding him through the backs of the business during their time sharing at AAG.

“Dennis Loxton was my mentor at AAG,” says Talmadge. “It’s really good to be able to be together again. Dennis is the National Sales Director and oversees all of Mid America’s activities. [reverse] sales managers. “

By reorienting its reverse mortgage ambition on a more national stage, Talmadge sees Mid America’s primary way to differentiate itself in the space by building on the things the company has always done well and for which it is known. in a more regional sphere of influence: processing of loans.

“When I started digging I realized these guys have a really good processing and operations team who know their stuff better than anyone,” Talmadge said. “They are very good at what they do. And so what they had was this great product, they had this great service, but they just didn’t have a direct way to deliver it to the public in a way that [they] would be receptive. Simply put, they didn’t really have boots on the pitch. And so, what we’ve done with Dennis and I on board, we’re expanding the national footprint. “

Look at Reverse Mortgage Processing, Deadlines

When he first looked at some of the company’s attributes, Talmadge said he was skeptical of some of the team’s claims about the accelerated turn times, but became convinced when he saw them. in action, he explains.

“We have a definite advantage in the market, which is that [Dennis and I] Obviously came from a big company, ”he said. “The attitude of the big companies is that reverse mortgages take 60 to 70 days. The Mid America team is committed, [telling me they] can do it in 30 days. I was skeptical of their ability to do that, and yet, not only are they delivering it, but they are also outperforming on that number. And so all of a sudden I think we’re going to evolve into a national player in this area because our operations are so strong.

Talmadge sees Mid America’s relatively smaller size as key to this processing advantage, as it allows the lender to be more generally nimble to respond to borrower needs as quickly as possible, he says.

“I made a deal today that took 37 days, and that’s with two national holidays and one unit approval for a condo,” he says. “When all of a sudden it becomes the deadline and in order to be able to deliver it to the customer, it really [blows them away] because they don’t expect us to be this quick or productive. I feel like this is the biggest competitive advantage we bring to the market. We understand that we are not the biggest and that we do not have a big footprint. What we have, however, is that we’re lean and nimble, and we can deliver what we say we can deliver.

A segmented approach to reverse mortgages, looking for new business

As some multichannel lenders take a cross-pollinating approach to their reverse and term mortgage divisions, Mid America is taking the tactic of maintaining specialization between the two types of products, Talmadge says.

Dennis Loxton, National Reverse Mortgage Sales Manager at Mid America Mortgage.
Dennis loxton

“We find that keeping staff focused on the reverse also provides a more focused customer experience,” he says. “We try not to get them bogged down in their separation and [having] wear multiple hats. We’d rather be really, really good at one thing and be known to be good at it. “

Maintaining this particular focus on reversal, while strategically examining how and where the company’s footprint is extended, will be the primary drivers of its reverse mortgage strategy, he says.

“We’re looking to place reps in different markets, but we’re also specifically looking for people who have been doing this for a while,” he says. “We want them to have this passion for helping the elderly, we want them to have this passion for understanding that [cohort]. It is a single market. It’s not for everyone, but it’s okay.

While the main business will focus on Federal Housing Administration (FHA) sponsored home equity conversion mortgages (HECMs), Mid America will offer exclusive reverse mortgage options that include at least one product with a requirement for minimum age of 55 years. However, since the Maximum Reverse Mortgage Application Amount (MCA) was recently revised up to $ 970,800, the potential for HECM to serve the majority of the company’s clients is likely, Talmadge says.

The company will also aim to try and focus most of its efforts on finding new business, instead of focusing too much on HECM-to-HECM refinances, he says.

“If you’ve been in the mortgage business long enough, you know that at some point the refi boom is going to end,” he says. “I’ve always been amazed that people in the mortgage industry, in general, seem to get amnesia every two or three years. They think [refinancing] is the nature of the market until it is not. If so, the way you develop isn’t by focusing on the refi. Don’t get me wrong, I love refis, they are awesome. But the real growth will happen with people reversed for the first time, those who have just entered. “

Based on reverse mortgage endorsement data compiled By Reverse Market Insight (RMI), Mid America Mortgage is the 15th largest reverse mortgage lender in the country with 516 loans in 2021, a 225% change from 2020 volume.

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