Reverse mortgages

Follow through—sounds like I’m going to use some type of sports analogy, right? Nope. I have been working at breakneck speed over the last couple of weeks on the new release of my Reverse Mortgage Success system (Reverse Mortgage Success 2.0) and as I was compiling the components, I was reminded of how much has changed in our business in a short time.

We all know the one thing that is certain in life is change. And change is coming in a big way to the reverse mortgage industry. How you prepare and how you handle change tells a lot about you and your future in the business.

Every once in a while I get a slew of questions and comments centered on the family members of the seniors. And yes you guessed it, those questions and comments are about the kids.

Don't be a stranger. To your professional network, that is. I know a lot of loan officers (and other sales professionals too) tend to skip the networking meetings over the summer. The thought here is that "practically everyone is on vacation and there won't be any productive networking going on." Well, guess what-the summer is just about over and that excuse (and it is just an excuse) is no longer relevant.

If you've kept up with your reverse mortgage news this week you've learned that we have moved a step closer to the subsidy that has been requested for the Federal Housing Administration Home Equity Conversion Mortgage program. This is certainly positive news but we have a way to go yet. What can you do as a reverse mortgage originator to help keep the message alive?

We all knew it was coming; it’s been a topic of conversation at industry meetings for some time. There were questions and there was speculation, but now we know the details. While there don’t seem to be any big surprises, there are some changes and being on top of this will keep your reverse mortgage originations running smoothly.First of all, no need to panic. There are some additional steps to be taken and some additional information that will be provided to the senior, but keep in mind that the more informed the senior borrower is, the better for all of us.The new protocol requires that the senior be provided with certain pieces of information prior to the counseling session. In anticipation of these changes, some reverse mortgage originators have been gearing up. Instead of burying your head in the sand and ignoring the changes, be proactive, get a copy of the protocol from the HUD counseling handbook if you like, or speak with your lenders, they should have this information as well. If you’d like a copy, send a message via this article.

I received an interesting question from reader last week and I want to share it because she made an excellent point probably without even knowing it. She asks, "Sue you have your hand in so many different projects (yes I do write, speak, and teach in addition to my own reverse origination), how do you get it all done?" She goes on to say that she has a hard time just getting the few reverse mortgage applications that she has to closing. Great question!

Thanks to all who wrote in last week and liked the idea of using nostalgia or the "back in the day" type of story to illustrate the benefits of the reverse mortgage. Often a story can make a point that is much more poignant than all the facts and figures we like to collect.

I saw an advertisement on TV last week that really made me think. It was for a handyman service so not at all related to our industry, but no matter. It painted a picture and transported you immediately. Does your marketing allow the senior to really visualize how the reverse mortgage can change his/her life?

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.

I read an article last week (on Wednesday) in USA Today that discussed a topic I found to be disheartening but not surprising. Bankruptcies are once again on the rise and expected to hit levels not seen since 2005 when the new filing regulations took effect. It got me thinking about our seniors.

This week we are pleased to share with you one of our favorite columns from Sue.

Have you ever noticed that when you make up your mind to do something (I mean really make up your mind) that things just seem to start going your way? Why is that? Take a minute to think about it, because it directly relates to your reverse mortgage production.

Have you ever noticed that as salespeople we sometimes just can't get out of our own way? I was on a call with my coaching group (if you don't have one, consider joining one, your productivity will certainly increase) and the topic of "closing the senior customer" came up. One person in the group lamented that many of his clients recently were talking to two and three other companies (to "compare") before making a decision. This comment, as you can imagine sparked a lively discussion. Why is it that we often don't close the deal when the senior is clearly ready to sign?

Recently I wrote a post about the difficulties our industry is experiencing with borrowers who have trouble paying their taxes and insurance after closing on a reverse mortgage. It's anticipated that this challenge may increase in the coming years as many seniors have recently opted for the fixed rate reverse mortgage product, and all the available funds are taken at once. In addition, many seniors are paying off sizable existing mortgages, which increases cash flow, but they may be accustomed to having those taxes and insurance payments made through the escrow account in the mortgage. We always talk about educating our clients throughout the process of obtaining a reverse. Shouldn't we continue that education after closing and beyond?

A few weeks ago I mentioned a couple of points that bear repeating. I got a lot of feedback on these points, so please indulge me while I expand on them.

It's no secret that much of your reverse mortgage outreach and advertising is geared toward education on the program overall and the benefits to the borrower. As promised, I am reporting on some topics of discussion from the National Reverse Mortgage Lenders Association Road Show in Philadelphia in April.

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.

Editor's note: Today we are rerunning one of our favorite Sue Haviland columns. We hope you enjoy it.

With all the pricing changes that have occurred over the last few weeks, I've had to calm down a good number of reverse mortgage originators. They are saying, "I've never had to deal with this in the reverse space." Yes, I'll admit the current environment is not something we in the "reverse world" are used to, but guess what, it's here.