Written by David Bancroft Tuesday, 01 April 2008 12:22
When you first get into the reverse mortgage industry, you see the brightest light you have ever seen. You feel like you are a part of a special movement, a calling that screams out your name and gives you purpose. The fit is similar to that of a worn in glove or a pair of old sandals. There really isn’t anything that can stop the passion. It drives you to absorb the knowledge like a sponge, empowering you to feel like you could solve many of the world’s problems. I am just as excited about the possibilities of Reverse Mortgages as I was about my 6th Christmas, except this sled really does fly. However, I quickly realized not everyone saw the same bright light.
I had never been in a TV “green room” before. I had grandiose thoughts of expensive free food and foreign brand drinks with soft pictures of famous artists to relax to. What I got was a warm soda with big ice, a small, aging couch and the uncomfortable ear of a California Congressman. This was about to be the first of many encounters with intelligent, educated and powerful people whispering wild misnomers into the wind.
While waiting in the green room prior to my TV appearance, the Congressman leaned into me and asked, “Why are you here?” After a small gulp of diet coke, I quickly replied, “reverse mortgages.” Before he could reply, the producer came in and said, “Congressman, you’re next”.
I watched the congressman on the TV monitor in the room and admired how smooth his presentation flowed. Poetry in motion, I thought; these guys are good. My heart began to pump harder as I watched the host close his interview with the legislator and go to a commercial break, but not before mentioning something about Reverse Mortgages.
I took a deep breath as the producer walked by, glancing at me with the Congressman in tow. The Representative stopped once more and he looked right into my eyes and asked again as if he had forgotten, “why are you here?” I replied, “I am here to talk about Reverse Mortgages.” He quickly responded, “Reverse Mortgages…..yeah, they’re bad.”
This was my first of many encounters with uninformed professionals in the community who had failed to do their homework before voicing their ignorance. I never realized how strong the current of product misconception could flow, but I had just started to get my feet wet.
Shortly thereafter, I ran into a similar incident sitting across the table from a CEO of a local bank. I was there to introduce him to the newest available product for seniors. I thought I could enlighten him on the idea of Reverse Mortgages and assist him in aiding seniors who could benefit from the HECM product.
The CEO looked at me and said, “My dad just called me about a Reverse Mortgage and I told him that it was a bad thing. I put him into a Home Equity line of credit instead.” I shook my head, looked at him, and said, “Mike, you don’t know a thing about Reverse Mortgages, do you?” He said, “Dave, you are right. I don’t, and I didn’t want to lead my father in the wrong direction.”
I wasn’t bothered by Mike selling a HELOC, rather it was his negative slant and limited product knowledge that irked me. Unlike Mike, thousands of professionals in our communities would never fess up to having a lack of understanding. I know that a Reverse Mortgage is not for everybody and yes, the cap has to fit the head. It was that day I realized, we all need to educate the professionals who surround and influence our clients. This is not going to be an easy job, but if we want to succeed in our endeavors, we need to take responsibility and do it.
When I speak to my employees or our senior clients, I explain that negative reactions to Reverse Mortgages are a part of human nature. People fear what they do not understand and it is this fear that leads to negativity. Many who cast stones at Reverse Mortgage products do so out of a lack of knowledge. Unfortunately, our industry today still lives with the misconceptions and misnomers of Reverse Mortgages and the cure is just an education away.
Before I stood in that TV green room, I had preconceived notions of what I thought others knew about Reverse Mortgages. I just hope that financial professionals who read this article take the time to educate themselves about a product that can truly help our aging population. For those advocates in this industry who have similar experiences; step up, speak out and together we can lead our community of professionals to caress and cradle this wonderful product. We can all be Better Together.
About David Bancroft: David Bancroft is the President of OmniHome Financing Inc. Mr. Bancroft is a leading industry expert in the origination of Reverse Mortgages, FHA & VA Government Loans and uses his extensive experience to help promote the Reverse Mortgage industry. OmniHome Financing was founded by Mr. Bancroft and his partners in 2002 to specialize in Government lending and is one of the largest originators of HECM Reverse Mortgages in the Country.
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