Blind Faith or Measured Optimism?
If you’ve been wondering out loud just how our industry can position itself to begin regaining some of its historic numbers, you’re not alone. After reflecting on recent predictions as to just where reverse mortgage volume is expected to go, and reviewing our most recent case number assignments issued in the month of June, it’s safe to say that we have entered uncharted territory. While consumers are repeatedly advised to shop around for the best deal, the truth remains that significant changes to the reverse mortgage have reshaped the landscape of a loan that once appealed to and met the needs of a significant portion of middle and lower-middle-class seniors.
Narrow is the way that leads to today’s senior qualifying for a reverse mortgage, and fewer qualify for it. It’s not so much a lack of collective consumer demand- as today more retirees are seeking ways fund their non-working years- it’s a matter of fewer homeowners being able to successfully navigate an increasingly complex path to secure the loan.
Before you make any final judgments about our future consider the…
3 Comments
Let’s talk numbers.
There is nothing currently provided by HUD that leaves the industry with any comfort it has finally hit the nadir in endorsements following the 10/2/2017 changes. The Case Number Assignments (CNAs) for June 2018 (the latest monthly CNA report posted by HUD) were LOWER than those for May 2018. There is no positive spin to put on the numbers being posted by HUD as to demand. The reason why we keep hearing about 1) senior demographic growth, 2) higher home equity of seniors (which Pew Research calls into question), and 3) worsening predictions about retirement financial preparedness is that there is NOTHING better to point to. Few want to discuss cures to counter continuing downward sloping, peak to valley, secular stagnation.
The optimists’ hope for a short-term fix seems to be centered in NRMLA’s CEO being able to deliver on the changes he alludes to on Page 32 of the current issue of NRMLA’s Reverse Mortgage magazine. Yet there is no confirmation the changes have been implemented and no discussion about what changes were presented.
In between the industry is left with little to no hope for growth in the near-term. A little over a year ago, people like Shannon and me were talking about slow growth after 2017. That dream was dashed by the 10/2/2017 changes.
Shannon,
Good inspiring presentation to start the week out! You touched on many good points, which could all spell increased volume!
You mentioned the fact that seniors are shopping around more these days and you are right, they are. Rates and fees are a concern on the minds of many seniors.
This makes it tougher for the originator of today, however there are ways to combat some of it where the burden will not be as bad!
Trust, that word still prevails in our industry as one of the most imortant component parts to the success of an originator.
Having your senior client build up enough TRUST in you is the key! Once they have the confidence in your knowledge and ability to show them you are putting their best interest above anything else, half of the battle is won!
Also, when that complete trust is established in you, you may find that shopping around will be the last thing on their minds!
Building trust requires originators to know their product well, be educated, take courses like Reverse Focus offers and anything available to you in the industry!
Also, try and establish relationships with financial planners and advisors, elder law attorneys, cpa’s, small community banks and any professional that works with seniors.
Those professionals that send you business, their clients and customers are NOT going to shop you around. TRUST has already been instilled in these seniors because someone they trust implicitly sent them to you!
That is my two cents for this Monday, for what it may be worth to everyone!
Make it a great Monday all!
John A. Smaldone
http://www.hanover-financial.com
John,
Your message on trust was excellent, especially applied to relied upon/paid advisers.