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Get Ready To Tackle That Summer Beach List
Ralph Rosynek -
The Reverse Review Magazine
September - 2010
Making Purchases Part of Your Marketing Portfolio
Saturday, 01 August 2009 23:43
Articles - Sales and Marketing
When I first started my reverse mortgage business it was considered to be a niche business. However, as reverse mortgages have grown in popularity and caught the attention of other originators, the term niche has become somewhat skewed.
If you are to become an expert in the reverse mortgage business it takes an entirely different mindset than that of the traditional mortgage business. Very few can transition from traditional mortgages to reverse mortgages, all the while maintaining focus of time and resources. So, from my standpoint, reverse mortgages are still a niche if you devote your entire focus on dealing with the senior market.
Thankfully, the Homeowner Rescue Act (HERA) of 2008, HR 3221 now permits reverse mortgages for purchase. This enactment coupled with the new national loan limits a unique opportunity is waiting for those who want to “niche the niche” with the HECM for purchase program. Yes, spreading the word to your current, past, future clients, professionals, and now realtors are the keys to your future success.
I am not going into detail about processing and underwriting for a HECM for purchase. However, many questions can be addressed and answered on the HUD site. I also have it posted on our REMALO association web site for your review. Most recently two HUD mortgagee letters (2009-16 and 2009-19) have clarified some of the finer points, as noted in the earlier HUD original mortgagee letter 2008-33. Yet, not all areas have been fully addressed. My recommendation is to check with your lender to get their guidance.
You can also call HUD at the following:
800.CALL.FHA or 800.225.5342, or visit This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Thankfully, the Homeowner Rescue Act (HERA) of 2008, HR 3221 now permits reverse mortgages for purchase. This enactment coupled with the new national loan limits a unique opportunity is waiting for those who want to “niche the niche” with the HECM for purchase program. Yes, spreading the word to your current, past, future clients, professionals, and now realtors are the keys to your future success.
I am not going into detail about processing and underwriting for a HECM for purchase. However, many questions can be addressed and answered on the HUD site. I also have it posted on our REMALO association web site for your review. Most recently two HUD mortgagee letters (2009-16 and 2009-19) have clarified some of the finer points, as noted in the earlier HUD original mortgagee letter 2008-33. Yet, not all areas have been fully addressed. My recommendation is to check with your lender to get their guidance.
You can also call HUD at the following:
800.CALL.FHA or 800.225.5342, or visit This e-mail address is being protected from spambots. You need JavaScript enabled to view it
How do you proceed with your marketing efforts to capture purchase business?
1. You must familiarize yourself with all the nuances and details that comprise property eligibility. Of particular importance is new construction, by making sure it is FHA approved and the property is completed with a certificate of occupancy (CO) before your senior client can move in. Your loan will not close until this condition is met.
2. Repairs are very important. With a HECM for purchase, unlike a refinance, all repairs must be completed before the senior client moves into their newly purchase home.
3. Most obvious is making sure your senior client is age appropriate, 62 or older, and they have enough assets to do a HECM for purchase. This is different from a HECM refinance, because now we have dig deeper and understand assets for down payment and closing.
4. You become the reverse mortgage expert. To get really good with the HECM for purchase product, this must become your area of expertise. You must learn every aspect of a HECM purchase.
You must be willing to work closely with realtors.
You must be willing to work closely with realtors.
5. I can hear some of you now saying, “I don’t know if I can work with realtors”. Relax! Realtors are people to and once they realize that you can help them by presenting more opportunities, they will surely become your best friends.
Getting the word out
Seniors often think about moving, but as we know, most want to stay right where they are. Yes, in the comfort of their home. However, with the higher cost of fuel, utilities, maintenance, taxes and insurance they may be considering downsizing or moving to their dream home. In the worst case, you may find someone who has a peaked interest in the HECM refinance.
Here are a few ways you can get the word out about HECM for purchases:
Seniors often think about moving, but as we know, most want to stay right where they are. Yes, in the comfort of their home. However, with the higher cost of fuel, utilities, maintenance, taxes and insurance they may be considering downsizing or moving to their dream home. In the worst case, you may find someone who has a peaked interest in the HECM refinance.
Here are a few ways you can get the word out about HECM for purchases:
1. Realtors: If you were in the forward or traditional mortgage business, call your old realtors. If not, drive through your local neighborhoods and capture the agent’s names and contact information. The agents who are listing homes are great ways to get started. Don’t forget, when seniors want to purchase a house, they most likely will have a house to sell. This is a win-win for your agent.
2. 55 and older communities: Contact the realtor in the sample house or the agency in charge of that community. Give the agent a presentation about your HECM purchase program. Offer to be available to sit in the office and provide an analysis if the senior would qualify for a HECM purchase.
3. Senior centers and local civic groups: These are great areas to provide education to your local seniors. Your presentation should be education centered and not sales based. Provide examples and ask your realtor to come with you to provide additional information about affordable communities.
4. Print Media: You can partner with a local realtor and publish a classified ad promoting a new community or a listing that would interest a senior client.
5. Church groups: Seniors gravitate toward church and religious groups. Offer to give an educational seminar about reverse mortgages and include a portion for the HECM purchase.
Realtors Need You
Do you think it might be advantageous to a realtor to be able to sell at least one more house per year? How about two or maybe more? If so, do you think a realtor might be interested in learning more about a HECM for purchase. You bet!
So, the best and most efficient way to get the word out about HECM purchases is to concentrate your efforts on the Realtor community. You should call your local agents and try to connect with the owner or the branch manager. You will find that most realtor offices have sales meetings at least a minimum of once per week. Perfect! The Realtors office is a great place for you to introduce yourself and educate agents on this new opportunity for them. You, the HECM for purchase expert, hold the key to the vault. You have educated yourself to become the person who can get what they want.
The real estate market is still soft in most parts of the country. Agents, now more than ever, are willing to lend an ear to new solutions and opportunities to help them further their business and give them new innovative strategies.
You need to develop your own purchase presentation that works for you. If you want to save time, I have one done for you and it can be found on REMALO.
Now is the time to “niche the niche”. If you want to create a tremendous opportunity for future growth in your originations and success, consider adding HECM for purchases to your portfolio.
Good luck with your new adventure!
Do you think it might be advantageous to a realtor to be able to sell at least one more house per year? How about two or maybe more? If so, do you think a realtor might be interested in learning more about a HECM for purchase. You bet!
So, the best and most efficient way to get the word out about HECM purchases is to concentrate your efforts on the Realtor community. You should call your local agents and try to connect with the owner or the branch manager. You will find that most realtor offices have sales meetings at least a minimum of once per week. Perfect! The Realtors office is a great place for you to introduce yourself and educate agents on this new opportunity for them. You, the HECM for purchase expert, hold the key to the vault. You have educated yourself to become the person who can get what they want.
The real estate market is still soft in most parts of the country. Agents, now more than ever, are willing to lend an ear to new solutions and opportunities to help them further their business and give them new innovative strategies.
You need to develop your own purchase presentation that works for you. If you want to save time, I have one done for you and it can be found on REMALO.
Now is the time to “niche the niche”. If you want to create a tremendous opportunity for future growth in your originations and success, consider adding HECM for purchases to your portfolio.
Good luck with your new adventure!
