It's that time of the year. We're halfway there. That's right, hard as it is to believe we are halfway through 2010 already. Have you hit your goals? I read just recently that reverse mortgage applications are increasing in number. What about your own business? This is a good time to take stock and assess what you have done so far and decide if you need to make adjustments.
For example:
1) Average loan amount. What is your average income per loan? We've had some beneficial pricing changes which have made it possible for more seniors to obtain reverse mortgages, but is your income per loan on target to meet your goals?
2) Average number of loans per month. What is your ratio of applications to closed loans? If you are targeting seniors with substantial mortgage balances to pay off and you have too many loans falling out, time to rethink that strategy.
3) Is your target client clearly defined? This point is a follow up to item No. 2. If you are not achieving your target closing ratio, look back at the loans that have fallen out. How can you change your message to reach your target client? (Example: someone 68-74 years of age, a mortgage has a loan-to-value ratio less than 40%, home value of at least "X" in four zip codes within your local area). Define your target with this type of detail and match your marketing message to that specific audience.
4) Marketing. It is time to take a good hard look at what is working and what is not. Direct mail responses seem to be increasing. Don't neglect your professional networking partners over the summer. I often hear something like "oh no one really works over the summer. Business is down." I guess it is, with that attitude. Remember that families are visiting over the summer. Why not try a campaign that focuses on that message? Are seniors in your area missing out on seeing the grandchildren because they cannot afford to travel? We could discuss several strategies that work with this theme.
5) Keep it local. Have you been in touch with your local elected officials? This is a great time to get out there and meet them. You are one of their constituents and they need to be educated on how the reverse mortgage can help seniors in the area. With budget constraints as they are, these elected officials will be grateful that you opened their eyes to this program. Offer to be the local expert who can be contacted for information on a regular basis.
As we move into summer, I hope you all get to enjoy some time with family and friends. Enjoy the time with your children and grandchildren while they are on summer break. Continue to serve our seniors and know that you are making a real difference in their lives.
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
