Reverse mortgages

As we look forward to 2010, we continue to see stories of companies closing their doors or scaling back their operations. Have you taken decisive steps to be sure that in 2010 your reverse mortgage business will continue and you'll be able to serve the seniors in your community? You've heard it said, "hope is not a strategy" Are you sitting around just hoping that things will be OK in 2010? Or have you taken stock of your business and put a plan in place that reflects your goals and current conditions?

On this day before Thanksgiving 2009, I hope you all get to spend some time with family and friends over the holiday weekend. We have so much to be grateful for. I thank all the readers of this column for your commitment to the senior market. At a time when so many of our seniors are facing financial challenges, you remain in the forefront bringing the information they need. I hear from you week after week telling me the success stories that make what we do so unique. At the National Reverse Mortgage Lenders Association conference last week, I was able to speak with our peers from around the country and heard that many of us are dealing with the same issues. Property values remain a challenge in many parts of the country, the press is often mentioned as painting us in a less than favorable light. We can deal with all this; because we know what we do is important and brings real value to our clients.

As I write this article I am on a plane bound for San Diego and the annual conference of the National Reverse Mortgage Lenders Association. I can't help but wonder what my colleagues and peers will be saying this year. Some may say it was an "off" year despite another record in volume. What about you? Have you met your production goals? If so, did you find it more difficult than last year? What plans have you put in place now for 2010?

Editor's note: Today we are rerunning one of our favorite Sue Haviland columns. We hope you enjoy it.One of the best ways to reach out to seniors and educate them about the benefits of reverse mortgages (or any products) is often overlooked even by the most experienced reverse mortgage originators. It is something you can do at practically any time since the means to accomplish this is in front of you every day. It is passing on to your potential clients what's in the news. Using current events and news is an effective way to link (match the message) reverse mortgage benefits to the audience.

As a reverse mortgage specialist, you probably have a marketing plan and strategy that you can rely on that provides predictable results. If not, we need to talk! I'm sure you use a mix of tools that position you as the local expert and that you can track the effectiveness of each.

Well friends, it's nearly the end of October. The leaves are falling; the weather has begun to change. This signals an important time of the year for me, planning for 2010.

In a follow up to my previous piece, let’s look at what we as reverse mortgage originators can do to be proactive about how we and the reverse mortgage product are perceived in the market place. What can you do today right in your town to improve your standing in the community and your profession? It’s probably a bit out of the box but you CAN do it. And it will elevate you to a new level and bring you more credibility.

Seems like more often than not, the stories you see in the media about reverse mortgages are, well, less than complimentary. Let's face it they are down right ugly. Seniors are cautioned to be extra careful and our segment of the industry is labeled as the next subprime crisis. Gimme a break.

If you're like many of the reverse mortgage originators I've heard from this week, you're feeling a bit beaten up. Yes, we are about to experience a reduction in the principal limits for our clients. Yes, in some areas property values are making it tough to get some of your transactions done. It seems as though we are fighting an uphill battle right now. Makes you think about throwing in the towel and moving on to something else, right?

There were so many good questions that resulted from last week's article (see just a few of them at the end of last week's post) that I decided to follow up and continue the discussion.

Now that we have several months of Reverse for Purchase under our belts, it's a good time to step back and look at where we are. This valuable addition to our menu of programs has certainly made a difference in the lives of seniors and I predict it will continue to increase in popularity.

I've received a great many calls and e-mails lately from coaching clients regarding seniors who "just won't make a decision right now about the reverse mortgage." Those readers who know me are fully aware of my typical advice in this situation: "Look in the mirror."

As mortgage originators, we are constantly trying to build our "list", our database of customers and prospects. It is our lifeblood. So much effort and expense is spent on acquiring that lead and we all too often suffer from a failure to follow up once we have that prospect. Recently I was asked to prepare some comments on how we, as reverse mortgage originators can stay in front of our prospects and increase the likelihood that they will call us first when the time is right. You've heard it said in sales that for each month you don't reach out to your prospects, the chance they will contact you diminishes. It's no different with the senior population. The prospective reverse mortgage client wants to know that you are still around (especially give the current environment) and that their business is still important to you.

One of the best ways to reach out to seniors and educate them about the benefits of reverse mortgages (or any products) is often overlooked even by the most experienced reverse mortgage originators. It is something you can do at practically any time since the means to accomplish this is in front of you every day. It is passing on to your potential clients what's in the news. Using current events and news is an effective way to link (match the message) reverse mortgage benefits to the audience.

Over the last couple of weeks, I've received comments from readers (please do comment on these posts and ask questions if you like) that indicate to me there is still a thirst for the basics of the reverse mortgage product, namely how it works and why it's so important to seniors. While we could go into a great deal of content and detail, space will allow me to say just so much here today.

Our story today comes under the heading of "you just never know" but it got me thinking. I've been doing that a lot lately in response to requests from coaching members who want some unique and creative ideas to spark some new business.

I recently read a couple of articles that started me thinking about how we can best serve our senior clients and increase our business at the same time. The first was regarding how our children are not really encouraged to think creatively and how important this will be in the future. The second was at norwichbulletin.com on July 20 and focused on an out of the box way to use reverse mortgage proceeds. Both articles got me thinking.

Have you found that the reverse mortgage business in your area has become more competitive? Or is it maybe that the senior borrower is more hesitant about making a decision? Whatever your perception of your local market, I am hearing these concerns raised more and more in our coaching calls. What can you do to change this perception and get yourself back on track?

Yes, I know those are the words to an old song, but one of the most common questions I hear is, "how to I get the senior to want to use me and not shop around for a reverse mortgage?" Even seasoned reverse mortgage originators sometimes struggle with this. Every once in a while we need to be sure that all of our marketing and outreach is sending a consistent message to our prospects and their children. Do not forget or ignore the children. In fact, I recommend you target them.

Are you an originator who is constantly searching for a way to keep in touch with past clients and prospects in a way that will produce real results? You know how important it is and the chances that a prospect will do business with you decreases exponentially if you lose touch. Try this - I have been using this one method for years and it works: The newsletter.