For the next couple of weeks, I'll be providing updates from the NRMLA Philadelphia Roadshow which I attended last week. For those who are interested, I suggest you consider becoming a member of the National Reverse Mortgage Lenders Association if you are not already.
I found the sessions to be quite informative, with several representatives from the Department of Housing and Urban Development in attendance. It's always good to hear directly from these folks and to be able to share with them our concerns as an industry. Some of the topics covered included advertising and what not to do-we'll talk more about that in another article-the future of the broker/wholesaler relationship and, of course, counseling.
As the popularity and curiosity about reverse mortgages spreads, more and more countries are looking at this valuable product to help seniors and ease strains on already stressed programs. To that point, there was a gentleman from Germany in attendance whose goal was to learn more about how we run the reverse mortgage program.
One particular discussion centered on marketing and lead generation. Statistically, the average reverse mortgage client is about 72-73 years of age and female. While the average age continues to move downward just slightly, one item of note is the number of married couples seeking reverse mortgage advice is rising. This led to a deeper discussion about identifying your target audience.
The truly successful reverse mortgage originator has a solid plan and acts on it. That is nothing new. But can you really identify your target borrower? If you are using direct mail as your lead generation tool, have you clearly set the criteria such as Zip Code, age (not just 62 and over and a homeowner) and property value? Do you know the average loan amount in your area as well as your average loan amount? What about the average income of your borrowers over the last year or so? We do collect income information so you should be keeping track of that data. Match the message to the prospect. If you are targeting those on a fixed income, your message is likely different than for those in a higher income range who may be looking at the reverse mortgage as a long range planning tool.
Continue to collect this data and refine your message and you'll increase your market share in your local area. Given the current environment of reduced fees and favorable interest rates, we should be poised to help more seniors than ever.Sue Haviland is a reverse mortgage consultant in Baltimore and the founder of Reverse Mortgage Success, a leader in the training and education for originators around the country in the rapidly growing reverse mortgage arena. Sue has worked in the lending industry since 1981. She has been originating reverse mortgages for the last six years and still originates loans every day. She has helped hundreds of families all over the country in the last several years. Sue also shares her knowledge of this market in presentations before the Women's Council of Realtors, Mortgage Bankers Association, National Association of Professional Mortgage Women, and SRES - Senior Real Estate Specialists, Brian Sacks' Insider Seminars, as well as the public. Sue is a Certified Senior Advisor and is active in many professional organizations. Sign up for her free seven-part mini-course at
