Avoiding Common Pitfalls:
A Guide for Reverse Mortgage Loan Originators in 2025

As we enter 2025, the reverse mortgage industry continues evolving, presenting new opportunities and challenges for loan originators. While the market offers significant potential, it also demands the highest level of diligence, efficiency, and creativity. Here are some critical pitfalls reverse mortgage loan originators should avoid to thrive in the new year:

Pitfall #1- Doing the same thing you did in 2024.

Now is the time to look closely at your sales activities and marketing used throughout the year. List down those efforts that didn’t yield any results. These are your prime candidates for elimination in 2025. 

However, there’s one exception: new marketing efforts. 

Starting a well-thought-out marketing campaign and expecting immediate results is akin to a farmer uprooting the tree planted months earlier because it didn’t yield fruit. Yet, there may be activities and advertising efforts that could be scrubbed freeing up valuable time and resources for other strategies in the new year. If it helps, look back at your calendar or business expenses to see what should be pruned and what should be nurtured in 2025.

Pitfall #2- Being a reverse mortgage hermit.

There are certainly days when reverse mortgage professionals may want to secret themselves away from the prying eyes and expectations of society. While the COVID-19 pandemic revealed the effectiveness of working from home there are disadvantages of being firmly ensconced in your office–one being lost opportunities. 

In 2025 resolve to look for reasons to get out and mix with the professionals in your area. Make your presence known as a volunteer, referrer, problem solver, and overall resource to others and you’ll stand a better chance of receiving referrals for potential borrowers. Remember, when you’re out of sight, you’re often out of mind. Make friends. Make connections. Create value for other professionals in your community.

Pitfall #3- Not managing your sales pipeline.

Certainly nearly every reverse mortgage professional reading this diligently works on their leads, follow-ups, loan conditions, etc. However, do you have a visual representation of your sales pipeline? If not, consider using a whiteboard or Excel template to track your sales. 

For example, you could create columns for proposals sent, applications out, applications signed, underwriting, funding, etc. To simplify matters you could use Post-it notes on your whiteboard for each applicant noting the homeowner’s last name, projected commission, and close date. A sales pipeline can help reveal if you’re creating a consistent incoming stream of potential loans or if your sales pipeline will run dry in a few months.      

Pitfall #4- Surrounding yourself with naysayers.

There’s nothing that will erode your confidence (and your sales pipeline) more than surrounding yourself with negative people. Was the fiscal year 2024 one of the worst for HECM endorsement volumes? Sure. Yet, we can acknowledge reality without subjecting ourselves to a diet of negativity. 

“Show me the five people you hang out with and I’ll show you your future”, said motivational speaker Jim Rohn. 

The people we regularly interact with have a more profound influence on us than we may realize. Naysayers often amplify their doubts and perceptions and unwittingly put them onto others. 

With that in mind, look for fellow reverse mortgage professionals who challenge, inspire, and motivate you. Seek a balanced diet of unflinching realism coupled with measured confidence in finding a way to succeed in today’s market. 

As we enter the new year consider these four points and how they will shape your sales efforts in 2025. Even better, let us know what’s worked for you in the comments below.

Happy New Year!