The Last Word : Dave's TOP 9
Written by Dave Bancroft Tuesday, 07 April 2009 09:53
Congratulations to Reverse Review on its 1st anniversary, and thank you for taking a chance on all of us. I have always admired the few who take chances when I would have balked, or who have risked when I would have held back. It is an incredible feat to be the pioneer with the first industry magazine and to accomplish it with professionalism and style. Here’s to many more years of success and may this periodical reach the masses and continue to educate those both within our industry and beyond.
I am pleased to have the opportunity to provide a few thoughts for this month’s special edition. I believe 2009 has opened the door to wonderful opportunities for those of us with the fortitude to persevere through difficult times.
Allow me to present my Top 9 for 2009:
Number 1: Washout – Like a stain on your favorite shirt, may it leave as fast as it appeared. This year has seen an incredible number of newbies to the industry exit as quickly as they came in when they realized it was harder than it looked. This benefits all of us, the pioneers of the industry, as our positions as care takers of our clients and industry strengthen the integrity and reputation of this fine product.
Number 2: Education is Spreading – For the first time, I am being approached by other professionals asking questions about this product without the negative stigmas or the ignorant stereotypes. We are cracking through real barriers as these professionals begin to realize that this product can enhance their client’s lives and their own businesses. We also are finally seeing a change in news spin as some pieces on news programs show the ability of the product to positively change lives.
Number 3: Financial Crisis Equals New Opportunity - Sometimes the darkness exposes the light from the crack in the door that allows for our escape. If not for the terrible losses in the markets, many professionals may not have been forced to search out and open their eyes to alternatives for them and their clients. This time of hardship has showcased our product like never before and demonstrates its power to provide self-sufficiency and better living.
Number 4: New HECM Products - The HECM for Purchase product has given the Reverse Mortgage new validity. Striking against the misconception that the product takes a senior’s home, it shows the ability to provide one. More diversity with this product will provide more options and will appease a greater following. With Fixed and LIBOR products gaining traction, and the anticipation of new Co-op and condominium rules, this year should continue to provide a wider selection to choose from.
Number 5: Low Rates Continue - It is fantastic to see interest rates maintaining in low territory and this should continue to hold while the economy strives to find its way back to solid footing. These rates are allowing clients to maximize their benefit and provide more people the opportunity to take advantage of the program. Look for this trend to continue through the year.
Number 6: Jumbo Product Anyone? - As 1st Reverse flirts with a large value proprietary product, maybe it will whet the appetite of insurance companies or big banks and they will begin to see this niche as a viable opportunity. We’d love to see it happen and hopefully, we’ll see more as the year progresses.
Number 7: Technology is Catching Up - Although an LOS system well-integrated with the calculators and CRM are still vaporware, we are seeing good progress. The technology is maturing as lenders accept E-submissions, LOS systems, like Reverse Vision and IBIS, continue to improve and websites become more interactive. Improvements in the quantity and quality of available data are improving our ability to properly evaluate available information and estimate home values. I can see a horizon where the paperwork disappears and clients provide e-signatures via their own computers, saving stress and writer’s cramp.
Number 8: Government Supports Reverse Mortgage - Rarely does anything worthwhile happen fast; slow and steady wins the race. Where government entities previously shied away from changes to the HECM product in new legislation or guidelines, they now are becoming advocates. Congress, the President and HUD all seem to be expressing support for making this product more widely available. Recent legislation has increased lending limits, provided greater product diversity, which is assisting growth. Of course, we can only help but be concerned about potential state limitations and regulations that may cause many to pay the price of an ignorant few. Hopefully, the state legislatures see the light and follow the lead of the federal government.
Number 9: Satisfaction is High - Only the mix of the right product with the right people can lead to an approval rating well over 90%. I can’t wait for the day when our clients go from whispering their success stories to screaming them from the top of the trees. The sound will rattle loose all the caged misconceptions and free an entire population. The day will come when Reverse Mortgages will be a pillar of retirement and be viewed as an important element of any sound financial retirement plan.
The Reverse Review celebrates its first year, and the industry celebrates a bright future. Those who remain are the committed few who help us grow this far. Keep up the good work and here is to another successful year.
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