Like so many others who have devoted a good portion of their professional careers to reverse mortgages, Carol Ann Dujanovich came up through the ranks of the forward mortgage world.
Dujanovich began her career in mortgage lending in 1981 as a loan processor. She became a Direct Endorsement Underwriter in 1988 while serving as Branch Manager for Countrywide Funding.
Her first big job in reverse came in 2007 when she was hired as a DE Underwriter by Urban Financial Group – later to become Finance of America Reverse. Today, Dujanovich oversees the reverse mortgage operation at University Bank, a 134-year-old community bank based in Ann Arbor, MI.
She also proudly represents the reverse mortgage industry as a member of the Department of Housing and Urban Development’s Housing Counseling Federal Advisory Committee.
Reverse Mortgage Magazine sat down with Dujanovich to learn more about University Bank, her work on the HCFAC, and the guiding principles that have contributed to her success.
Reverse Mortgage: How did you get into the reverse mortgage business? What makes you successful?
Carol Dujanovich: This is my 43rd year in mortgage lending. This included a stint with Price Waterhouse Coopers doing compliance audits when I encountered reverse mortgages for the first time. I was confused as to how you could have a mortgage without a payment. We got through the audit successfully, and it really piqued my interest in understanding the concept of a reverse mortgage. Time went by, and I received a call from Bryan Hendershot, president and CEO of Urban Financial Group, now FAR. I had been a DE Underwriter since 1988 focusing on forward mortgage loans. He and I opened a dialogue and, eventually, I became the company’s very first remote reverse underwriter. This was long before the financial assessment was introduced. The two main eligibility factors were “Are they 62 years old?” and “How’s the collateral?” and that was about it. I tended to over-underwrite in the beginning, applying forward underwriting methodology. What I’ve learned since then, and this has added to my success, is to maintain the focus on what we are here to accomplish and assist our seniors in remaining in their homes to age in place. Be honest. Be authentic, and by that, I mean we always must do the right thing in the best interest of the client. Of course, we all want to see some revenue and be successful, but at the same time, we need to remember what we’re here to do. If I had known then what I know now about reverse mortgages, I certainly would have had my parents secure a reverse mortgage to help them in their golden years. We have a completely different audience than the forward side, and with that comes its own challenges. There are always circumstances that tug at your heart, and for me, that’s what makes me want to work harder and do better.
RM: Tell our readers about University Bank. Is your footprint national or primarily the Midwest? How many employees do you have in the reverse mortgage division? What percentage of your business is retail vs. wholesale?
CD: We historically ran about 50/50 wholesale and retail, but in recent months business has tipped more towards the retail side. We lend nationwide. The bank is involved in several niche businesses, such as faith-based lending, and it sub-services mortgages for 400 client institutions. I oversee the reverse division from origination through insuring. Between operations, underwriting and sales, we employ 16 people. We want to advance our footprint. I like to call us a boutique lender because we are smaller and can give the proper attention to our clients. We have 15 branches that are becoming more comfortable with reverse mortgages, and we are getting referrals from them. We currently sell all our reverse mortgage production, but the board of directors has provided assurances that once our volume reaches a certain level, we will start servicing our loans. We have a large-scale IT security platform that provides a level of comfort and assurance to our customers that we’re a well-run, well-managed, compliant organization. We have won all the awards that a community bank can win, including Community Banker of the Year from both American Banker newspaper and the American Bankers Association. We have amazing support and commitment from senior management, including the Reverse Mortgage Division President Rory Ballard and our Bank’s President & CEO Stephen Lange Ranzini. I am proud of the division and my staff. I have been in senior management for a long time, and I can honestly say this has to be the most dedicated and talented team I have ever had the pleasure of working with. It makes my heart full knowing that everybody who sits at their desk under my watch has the same passion for reverses that I do.
RM: You have served on HUD’s Housing Counseling Federal Advisory Committee since September 2021. What has this experience been like?
CD: I have learned so much from being on that committee. I have friends and colleagues working for HUD and one of them suggested I apply for an open seat on the committee. The process took about one year to receive the appointment. The group includes Realtors, various nonprofit agencies and housing counselors. It’s a diverse committee. We advocate for counseling, but at the same time, we listen to see where the needs are. We advise on counseling for rental assistance, homelessness, and much more. Before my involvement, nobody from the reverse mortgage industry had participated on the committee. I have shared my knowledge of reverse mortgages and explained how counseling is so important and where we see challenges, especially during COVID. My stance has always been that counseling is a very integral part of our business and we need to be strong and give good direction. I would like to see reverse mortgages become a bigger part of the committee’s focus. My term is ending, but I expect HUD will be appointing new committee members shortly after the new year.
RM: University Bank offers a proprietary reverse mortgage. What percentage of your production is proprietary vs. HECM? What distinguishes your proprietary product from others in the marketplace?
CD: I want to say ten to 20 percent of our volume is proprietary. A lot of these cases involve high-net-worth individuals and couples who live in condominiums that are not FHA-approved, nor does the condominium association want to seek that approval. We follow standard proprietary guidelines, though we might be able to make exceptions. We view each loan individually, meaning each situation is different than the next, which allows us to be more flexible. The reverse division understands what is expected of us and we always maintain the highest standards of ethics, quality and integrity. Our focus is to assist our seniors in remaining in the homes they love and where they have made memories. We do what we say with the utmost care and compassion. We work hard to understand the needs of our customers, and while we may not always get to the finish line, we can say we have all done our best.
RM: What were some highlights at the bank or in your reverse mortgage division in 2024?
CD: First and foremost, I hired an amazing national sales manager, Doug Ziegler. He is an asset to the bank and the reverse mortgage division. We have finally positioned the division for further growth by putting the right people in the right positions, so that to me was a major success. We have become more active with NRMLA. We have a full marketing team that has stepped up our marketing efforts. We still have a way to go, but I believe we have positioned ourselves for success.
RM: Looking ahead to 2025, what trends would you expect to see?
CD: I wish we could predict where interest rates are headed, but just when we think we can, it never happens as we predicted. We also have the election, so there are many factors. We must play the hand we are dealt with. We have not been in this situation for a very long time, so we have to look at alternative methods for business. I would like to see a rate decrease, as everyone does. I was pleased to see the CMT (Constant Maturity) Index drop a little bit, so I am hoping that will continue. My fingers are crossed that we see an uptick in the market, and it will be back to business as usual.
