Reverse mortgages

I received an overwhelming number of questions and comments in response to last week's article on websites and social networking for reverse mortgages. It stands to reason to address these right now and offer some further explanation about why I consider this so important and what I found that made all the difference, since I am decidedly not the guru in this area.

You might think that because you work with seniors in the reverse mortgage space, that the Internet is not as important as it is to your forward loan co-workers. Think again.

I wanted to take the opportunity to talk about the upcoming Memorial Day holiday. The holiday commemorates those who died in military service to their country.

Have you ever noticed that as salespeople we sometimes just can't get out of our own way? I was at a meeting with my local mastermind group (if you don't have one, start one today) 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 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?

In our last piece we touched on some of the ways that you cannot only market effectively but really become a part of the senior experience. Let's take that a couple of steps further and look at some high impact, low (or no) cost alternatives for outreach and expert positioning.

All too often when a mortgage product is seen as the "next big thing" loan officers will flock to it in droves hoping for the quick buck. They picture loans falling out of the sky and phones ringing off the hook. When they make the decision to jump into the reverse space, they realize that they truly are dealing with a segment of the population that is unique. To be successful as a reverse mortgage originator, you need to understand what is important to the senior client and how and when they decide to buy.

As more and more seniors and their families are faced with the decision about where mom and dad will live as they age, it is crucial for the family to be sure that the individual needs of each person is met. How can we as reverse mortgage professionals become a resource and guide our clients through the maze of issues to be considered?

One of the most common concerns for new reverse mortgage originators is how to develop the proper methods for communicating with seniors. My advice is usually "relax." Oftentimes if you are a good listener, you'll be just fine. That is one of the most interesting aspects of dealing with this group of people, in my opinion. Seniors have incredible stories to tell, and when you hear about their experiences and their situations it will give you great insight about how to handle their reverse mortgage inquiries.

If you have been in the reverse mortgage business for the last few years, you have certainly noticed a multitude of changes. If you are new to reverse, you have made a wise decision in choosing to serve the senior population. The reverse mortgage is projected to grow in volume for perhaps the next 20 years. As this product continues to evolve, it is imperative that you keep up to date in order to do the best job possible for our seniors.

For several years now reverse mortgage originators have been anxiously awaiting the "reverse for purchase" program from The Federal Housing Administration. On Jan. 1, 2009, that wait was over as the Housing and Economic Recovery Act of 2008 made this a reality. More accurately called, HECM (Home Equity Conversion Mortgage) for Purchase, it will allow seniors age 62 and over to use a reverse mortgage insured by FHA to purchase a principal residence.

How many times have you heard someone say, "that's so simple, why didn't I think of it?" Too often we want to look for complicated procedures and plans that go on forever when adding new products to our menu. To be truly successful in the reverse mortgage business, sometimes all you need to do is look around at what's right in front of you.

If you're one of those people right now who can't stand to open your 401(k) or IRA statement, I'm quite certain you're not alone. It can be frustrating to see the numbers going the wrong way, can't it? You may even think things couldn't be worse. All that hard earned money slipping away. Stop the pity party right here and now. As a loan originator you have the capability to generate income each and every month. Put yourself in the place of a 78-year-old retiree who is counting on the money in that account just to meet monthly bills. That's right - think you're stressed? You can't even begin to put yourself in that retiree's place. He doesn't have the luxury of "just hanging in there" until the market recovers.

If you are reading this article, you are one of the winners. Pat yourself on the back. Even I these turbulent times, you are taking steps to not only survive, but thrive. Why not supplement your business with the fastest growing product ever to hit the mortgage industry, the reverse mortgage. Get ready the time is now.