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Reverse Mortgages: An Originator’s Tale

Articles - Sales and Marketing

Written by Sue Haviland Friday, 27 August 2010 19:02

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Reverse Mortgages: An Originator’s Tale

“You have got to be crazy.  This is a lapse in judgment on your part.  This program will not be around for long.  You’re going to build your business around senior citizens?”  These are the comments I heard from my long time friend and mentor when I told him the exciting news that I had decided to take the plunge and enter the reverse mortgage arena about 8 years ago.  Now before you deem him mad, keep in mind that he felt he was looking out for my best interests and could not understand my decision to “give up” the forward world and go into reverse.

Whenever I tell people how long I have been in the reverse mortgage business, they usually say I’m a real industry veteran.  Not so fast.  There are others who have been in the game much longer than I, some who truly were the trailblazers in an uncharted territory and we all have them to thank.  But, I will admit to you that in the last 8 years, I have seen a lot of things come and go.  Our industry has undergone many changes, and more are on the horizon.  It makes perfect sense that as this industry grows and evolves, (many say we are out of the infancy stage and are in the growth phase of the business, and I tend to agree) change is inevitable.  How can a reverse mortgage originator continue to thrive in an ever-changing marketplace such as the one we are faced with now?  The answer may not immediately present itself, but oftentimes, when an industry is undergoing “growing pains,” the best thing to do is get back to basics.  Wherever you are in your reverse mortgage career, stop for a moment and think, “What did I do to get here?  What steps did I take to accomplish my goals to this point?”  Sometimes the best thing you can do for yourself is tune out all of the “noise” that is going on around you and quit looking at every “shiny object” that crosses your path; stay focused on your goals.  That’s not to say that you don’t want to assess your activities and marketing from time to time.  You should do quite the opposite; a good look in the mirror is often a healthy thing.

When I first started in this business, things were a lot different, to be sure.  For example:

We only had one product, and it was one size fits all;  
Counseling was different;
Origination fees were different;
We ordered our own appraisals;
HECM for purchase did not exist;
There were very few companies even offering the reverse mortgage;
FHA lending limits varied by county; and
What press coverage there was did not frame our industry in a positive light.

I could go on, but I’ll refrain.  In many ways the evolution our industry has undergone has been of great benefit to the senior, but has posed challenges for the originator.  We now must keep up with frequent changes to programs, pricing, and regulations that can vary from state to state, meanwhile keeping our seniors informed.  While the “upkeep” now seems almost constant, I find that sticking with the basics keeps me grounded and focused on the reason I got into this arena in the first place: the senior.

In the early days, my marketing budget was a nice, round number (think zero).  Working on a program about which there was limited knowledge on the part of my prospect base, coupled with a limited marketing budget certainly presented some challenges.  As I look back now, it was the best situation to be in, since I was forced to develop practical, effective, and low or no-cost ways to build a business from scratch.

The following are some marketing and outreach methods I have used over the years and have found to be tried and true.  Note that they are neither costly nor complicated.  In some cases, I have added to or revised them, but the overall goal remains the same: getting in touch with the senior prospects in my community and positioning myself as a reverse mortgage expert in my area.

It’s All About the Connections
“Way back then,” when I made the transition from the forward world to reverse, there was little direction and it was difficult to find many resources for marketing.  So, I did what I had always done in my forward business; I built upon the networking relationships I had already made and simply expanded them to include professionals who worked with the senior population.  It was sheer genius (ok, not really but it worked then and it continues to work today).  This strategy of building a professional network is among the most basic you will find.  It will also be one of the most successful if you continue to work at it.  Whether you belong to a structured group that meets regularly or one that meets less often, if you research the groups in your area and see which one(s) mirror the way you like to work, you will reap the benefits.  Some originators prefer not to belong to organized groups, but rather to meet individually with other senior oriented professionals in their area.  No matter which approach you prefer, the important point is to get connected with as many as possible, and build relationships with those whose ideals and goals most closely match yours.  Here are a few suggestions for professionals to target in your area:

-Elder Law or Estate Planning Attorneys
-Divorce Attorneys
-Bankruptcy Attorneys
-Financial Planners
-CPAs
-Insurance Agents (Life & Health, Property & Casualty, and Long Term Care)
-In Home Care Agencies
-Funeral Home Directors
-Geriatric Care Managers
-Home Improvement Contractors (CAPS designation)
-REALTORS®

These are just a few suggestions to start or add to your network.  It’s not necessary to have every category in your network and you’ll probably add some that I did not list here.  I suggest you have more than one from the categories you select.  Geographic restrictions and areas of specialty make this a prudent practice.  By learning about the services each of these professions offers, you not only build referral sources, you become a source of information for your senior clients.  Be sure you are a true partner to these other professionals, and look for ways you can help them build their business.  As they say, pay it forward.

One Step Further
In looking at the list above, do you notice something that many of these professions have in common with us in the mortgage industry?  Yes, they need continuing education.  Why not become that preferred provider?  Once again, it’s not costly (it often involves little more than your time) and you become much more than a reverse mortgage originator.  You are positioning yourself as a true expert in your community.  Think you can’t possibly do this?  Think again.  I have been offering continuing education for years.  REALTORS® were my audience when I was in the forward work, so I simply prepared a course for them on the subject of reverse mortgages (and this was way before HECM for purchase) and offered it throughout my state.  I then received requests to provide the same for other real estate professionals and now do this on an ongoing basis.  If you work with financial planners and CPAs, structure a course around their needs.

What about the seniors in your local community?  Do you currently provide seminars?  If you’re comfortable in front of a room, take this a step further.  Many community colleges have experienced the benefits of offering lifelong learning classes on various topics, and reverse mortgages fit in perfectly.  The college will be pleased to assist you in getting a course together (another addition to their offerings) and once again, you are the expert.  A large part of our business involves educating the seniors and their families, why not simply do this in a more formal setting?  Consider teaming up with an elder attorney or financial planner if that model suits you, or just go it alone, professor!  There are so many ways to offer education to professionals and to the public; I could probably do an entire piece on that topic alone, but we need to move on.

Just Show Up
In keeping with the strategy of working with other professionals, I am often asked, “where do I find them?”  It’s easier than you think.  First, enlist the help of others that you already know.  Seek a warm introduction to the particular profession you are targeting.  Once you have begun to build your network from these, now you need to go where the professionals are.  I belong to and regularly attend several networking and education events for professionals OUTSIDE the reverse mortgage business.  In particular, look for real estate groups (you should most certainly be a member of and volunteer at your local real estate board), insurance groups, and financial planners associations.  You get the picture.  It continues to surprise me how often I am the only reverse mortgage professional in the room.  Don’t ignore the mortgage industry groups.  Networking with your peers can be quite effective if done properly.  Be selective and only attend those functions you think are appropriate.  I found that early in my reverse career, some of my best referrals came from loan officers in the forward world who used to be my competition.  In addition to professional groups, look into the organizations within your community.  The Chamber of Commerce in your area probably does not have a reverse mortgage representative.  Of course it makes sense to include a senior oriented professional group, so while these were difficult to find years ago, that is no longer the case.  If you can’t find one, start your own, and take the initiative.  Civic and faith based groups should be on your list as well.  Find a charity that focuses on a cause that resonates with you and do more than contribute funds—volunteer.  It’s also important that your local elected officials understand the importance of the reverse mortgage program to the local community.  If you are so inclined, connect with these local officials and offer to be the source of information and updates on the program.

The Media In All of Its Forms

When you think of the media, do you think it only includes being interviewed on radio or television?  Think again.  If you are not comfortable or think you are not ready to get in front of the camera or microphone, don’t worry, there are many other opportunities.  By the way, you are capable of those things; you just don’t know it yet.  Get in touch with your local publications and offer to prepare an article on this fantastic program that is of great interest to area seniors.  I have even gone so far in the past as to purchase last minute discounted advertising space (this is a little known secret the publications will generally not tell you about) and used that space for an article.  Collect “success stories” and testimonials from past clients and include these in your writing (always get permission).
Now let’s talk about the “new” media: social media.  I will admit to being slow to embrace this form of outreach at first.  Maybe it was fear of being left behind, or not wanting to appear uninformed, but I finally took action.  In a way, I realized how our seniors must feel not completely understanding the reverse mortgage program.  So, I did what I knew I had to do.  I found someone who is an expert in this type of marketing and learned from her.  I now feel much more comfortable, although I am far from an expert in using social media.  It enhances the other forms of marketing that I use and gives me even more ways to position myself as the local reverse mortgage expert.  As with the other strategies discussed here, it’s not costly and not complicated; it’s an opportunity to learn something new.
Earlier in this article, we talked about presentations and offering classes.  Be sure to video and/or audio record yourself when you speak.  You can then use short pieces of these presentations to promote yourself on your website.  Consider a webinar series that you can offer to prospects, and promote it on your site.  Often, children are scattered around the country, while mom and dad are local.  Expand your outreach to the children or other trusted advisors with webinars or other electronic means.  Be sure to post your newsletters or industry updates on your site as well.

Do You Need A Little Nudge?
When you feel like you are in a rut and your efforts are not paying off, think about this: Who do you take advice from?  Do you surround yourself with like-minded success oriented thinkers?  From time to time, we all need someone whom we can bounce ideas off of and get some honest feedback.  Maybe you are part of a mastermind group.  If so, good for you, if not, consider a coach.  You can participate in coaching groups or as an individual.

Review your marketing from time to time.  At the beginning of this piece I wrote, “A good look in the mirror can be a healthy thing.”  You must be able to assess the success rate of each marketing strategy.  Whether you are spending money or time, track each strategy and modify as needed.

We’ve covered quite a bit of ground here and I hope I’ve given you some food for thought.  I truly enjoy originating reverse mortgages and sharing what I’ve learned with others in the business.  Whether you are a seasoned reverse mortgage originator looking to jump start some old strategies or you are new to this wonderful reverse business, keep yourself focused on the senior and the many benefits the reverse mortgage program can bring to someone’s life.  You have found (or maybe it found you!) a profession where the work we do today can have real impact tomorrow.  Take pride and continue to serve our seniors.
 

Top 100 HECM Lenders Report

Daily News - Daily News

Written by Reverse Fortunes Wednesday, 01 September 2010 17:50

1 WELLS FARGO BANK NA 1880 28.29%
2 BANK OF AMERICA NA CHARLOTTE 678 10.20%
3 METLIFE BANK, NATIONAL ASSOCIA 397 5.97%
4 ONE REVERSE MORTGAGE LLC 299 4.50%
5 GENWORTH FINANCIAL HM EQUITY A 177 2.66%
6 1ST AA REVERSE MORTGAGE INC 96 1.44%
7 GENERATION MORTGAGE COMPANY 84 1.26%
8 SECURITY ONE LENDING 82 1.23%
9 FINANCIAL FREEDOM ACQUISITION 82 1.23%
10 URBAN FINANCIAL GROUP 78 1.17%

Read more: Top 100 HECM Lenders Report

FIT for Reverse Mortgage Lenders, part 5

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Wednesday, 01 September 2010 17:45

Holes in the Safety Net

Senator Fred Thompson’s commercial touting the benefits of government-insured reverse mortgages did it for Tom and Bertha Akuna of Lake Matata, Minnesota.*

Tom Akuna, 69, retired two years ago because of chronic back problems from decades of back-breaking odd jobs. Bertha Akuna, 63, is a dedicated home-maker from the old school. The couple has no children and no pets.

During pre-lending counseling, the counselor, Sonia Hudloom, uncovered two gaping holes in the Akunas’ safety net: no life insurance policy and no pension benefits for a surviving spouse.

Read more: FIT for Reverse Mortgage Lenders, part 5

John Wuerffel Gains Access to Home

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Wednesday, 01 September 2010 17:44

John Wuerffel, the Schaumberg man padlocked out of his home, has regained access to his abode.  Freddie Mac is reviewing the case and the home has not yet been foreclosed.  Wuerffel simply never asked to be allowed to return to his home, even though he is still the legal owner of the house and had the right to ask at any moment.  Wuerffel is still pursuing a reverse mortgage.