Reverse Mortgage News Blog Entries Archives - Page 23 of 63

“One of the biggest drivers of losses in the HECM”

The Urban Institute calls for loan servicing reform

Despite the good news last month that the backlog of HECM assignments has been cleared, significant problems remain according to the Urban Institute. “Rather than continuing to narrow eligibility—and decreasing participation further—the FHA should focus on reducing costs. Addressing losses on assigned loans would be the best step in that direction. This servicing issue is one of the biggest drivers of losses in the HECM program.” So begins the Urban Institute’s recent blog post on how FHA could more effectively stem the tide of continuing HECM claims against its insurance fund.

Much like a broken pipe dramatically reduces the reach of other sprinklers in the system, HECM borrower participation, and overall loan volume have been decimated in the wake of several cutbacks to the program in efforts to stem continued losses. The trick is finding where the leak is. Evidently, numerous reductions to the amount of money loaned (PLF factors), the financial assessment, and first-year distribution restrictions have not had their anticipated effect as projected losses continue according to HUD’s annual actuarial reports.
All which leads us to the question where’s the proverbial leak? Nearly one year ago FHA Commissioner Brian Montgomery said of HECM losses, “My sense is that it’s more on the back end in terms of the losses we are experiencing. Part of ‘triaging’ is [determining] why that is happening.”

The Senate Appropriations Committee seems to agree to instruct HUD to improve its resolution of defaulted and foreclosed FHA Home Equity Conversion Mortgage loans that have been assigned to HUD. Today 60 percent of HECM loans are not assigned to the agency. This is often due to tax delinquencies, pending foreclosures, or bankruptcies. Of the 40% of loans ultimately assigned to HUD 42% incur losses or result in an insurance claim, while only 12% for loans still with the loan servicer result in a loss. Consequently, the Urban Institute recommends that FHA’s policies be changed to allow the current servicer to manage the loan even after the loan is assigned.

HUD’s losses may be higher because they are required to pay future delinquent property taxes after the loan has been assigned. However, before a loan servicer can assign the loan property taxes must be current. In some cases, the servicer may pay the current outstanding taxes anticipating future delinquencies, and assign the loan at that time.

For most HECM professionals loan servicing goes largely unnoticed. However, the importance of effective and efficient loan servicing cannot be overstated when it comes to the verification of tax payments, borrower occupancy, and property maintenance. There have been numerous anecdotal reports of HECM properties no longer being occupied by renters or family members long after the borrower has moved or passed away. In other instances, properties are not effectively supervised and become dilapidated decreasing the value of the loan’s underlying security- the home.

Contrary to the Congressional Budget Office’s recent recommendation to assign loans much earlier at 80% of the maximum claim amount versus 98%, the Urban Institute points to a potential source of a significant number of HECM insurance claims. Would this approach fix the leak and once again place the HECM closer in reach for those who could benefit?

Urban’s blog post concludes by stating, “If the FHA were to allow existing servicers to retain the servicing for the rest of the life of the loan, it would stem these unnecessary losses. This is critical to the future viability of this valuable program for seniors.”

hecm changes servicing

When Housing Becomes a Team Decision

Should they stay or should they go?

Boomers differ from previous generations in every way, including how they retrofit their homes for later life living. According to think tank Age Wave, 80 percent of Boomers are interested in reducing home expenses via technologies such as smart thermostats or apps to control appliances. Another 58 percent want to go even further, utilizing cleaning robots or heated driveways to make home care easier as they age.

Of course, Boomers are also planning for growing older by modifying their homes in some of the more tried-and-true ways: adding safety features such as handrails and grab bars, creating no-step entryways, installing lever-style handles on doors and faucets, and lowering cabinets and countertops.

Another popular, prescient modification is moving all living activities to one floor in order to avoid dealing with stairs later on. Three-fourths of people age 85+ experience difficulties with daily activities such as housework, or simply getting around the home.

But for some of those already in their 70s, 80s, and 90s, renovation and technology-assisted living can be too little, too late.

When Moving is the Best Move

Many older seniors do not want to think about the aging process, certain they’ll be the exception to any deleterious effects of aging, such as a fall. Yet over half of those 80 and older fall every year. And this is just one possible circumstance that could necessitate the need for a different living arrangement.

As driving becomes more difficult or even dangerous, as shopping for and preparing food, or doing household chores such as cleaning and laundry, become more challenging, daily life can metamorphose into a slippery slope. And while hiring in-home assistance is a viable option for anyone with the financial means, many seniors — especially women living alone — are opposed to giving strangers access to their home.

What, then, is a concerned family to do?

Gather a team. A certified financial planner, the senior’s primary physician, and family lawyer — all of whom, ideally, understand aging-related issues — can offer input to help the elder and his or her family decide what housing options are best. Fortunately, today there is an abundance of options, including:

Senior co-housing, where elders have their own independent units and share common spaces. Often a nurse or other medical professional is onsite or on call.
The Village Network, a national network of grassroots organizations run by and for seniors to provide affordable services, including transportation, home repairs, and wellness programs, all with vetted service providers.
Rent exchange shared housing, in which a senior offers a rent-free room to a student or other individual needing housing in exchange for help around the house, driving to appointments or shopping, or other services that they decide together.
Paid in-home care. While informal caregiving selection isn’t new, one innovative company now offers care services in both directions: a caregiver with a room to rent can host a senior needing assistance, or a senior with an extra room can have a caregiver move in. The company vets both parties and requires monthly evaluations by each party to ensure the arrangement continues to be satisfactory.

However, a move may eventually be in a senior’s best interest, regardless of how much he or she wants to age in place. A graduated care community allows elders to start out in independent living and, depending on their needs, advance into assisted living, memory care or skilled nursing, without having to relocate again.

As your reverse mortgage client base evolves with the times, it’s valuable to understand when and how a home can be adapted technologically to meet a senior’s changing needs — and when a family should consider enlisting an elder’s support team to decide whether moving Mom to a senior-centric location might be the smartest move of all.

For more reverse mortgage information, tools and technology visit ReverseFocus.com today.

Listening & Speaking to the heart

Listening is the key to closing more loans

“It is only with the heart that one can see rightly. What is essential is invisible to the eye.”

~ Antoine de Saint-Exupery, The Little Prince

Ever notice that the word “heart” contains both “ear” and “hear”? In order to really hear what your reverse mortgage clients and prospects are telling you, it’s essential to listen with the ear of the heart.

Speaking coach Lee Glickstein, with whom I studied, calls this type of listening “Alchemical Listening”.

Lee’s teaching method is unconventional. In lieu of the critique that’s standard in some of the well-known speaker trainings, Speaking Circles International offers a radical approach: allowing the natural speaker within to emerge minus “constructive criticism”. With no agenda, both speaker and audience are free to simply be present with one another in the moment. This wellspring of unconditional support creates connection, and with connection, stage fright gradually dissolves and creativity, passion, humor, and storytelling emerge. By receiving only brief, positive feedback for whatever they choose to share, hesitant speakers transform into authentic, powerful presenters who form a heart connection with their audience, rather than just aiming to deliver a message.

This insightful approach arose out of Lee’s awareness that we are all innately self-critical, and that additional criticism, no matter how well-intentioned, does not diminish anxiety. Knowing in advance that whatever they do or say will not be judged, it’s far easier for Speaking Circle participants to speak spontaneously — from the heart.

He explains how this process, which he calls Relational Presence, “rewires the brain to share … generously. By bringing a sense of appreciation and gratitude into every relational encounter, we flow and glow with authentic presence in public and private moments.”

This same attention to attunement can be applied whether we’re the ones listening to seniors with authentic presence, or sharing what we know about senior living possibilities at local Rotary Clubs, senior centers, retirement communities, or business lunch-and-learns.

Here are seven steps to deactivate podium panic and speak from the heart:

• Prepare. While the Speaking Circles model is extemporaneous, this only works in practice when you’re an experienced speaker who’s given a similar talk numerous times. Most people who appear to speak impromptu are actually well versed in their material. Create some index cards with the salient points you want to cover, depending on your audience and the time allotted. Then practice your talk beforehand, ideally with someone supportive who can help you enhance your presentation.

• Adapt what you know. Your senior marketplace expertise can unfold numerous speech topics. For instance, you could draw from your knowledge of older adults and hearing loss, how best to work with seniors, and even this article, to develop a talk for business professionals in complementary fields about the importance of listening with the ear of the heart to senior clients.

• Gear your topic to your audience. If you’re speaking to a group of seniors who may have heard the term “reverse mortgage” but don’t know much beyond the phrase itself, it makes sense to craft an introductory talk that explains what a reverse mortgage is in simple language, perhaps with bullet points that are available afterward as a handout.

• Customize your content. With a little planning, you can adapt the same core message for different groups. The talk about listening with the ear of the heart can be a “how to” for loan originators that use HECM jargon, and a more general piece on the best ways to work with seniors, for a Rotary Club meeting.

• Animate your talk with a terrific title. If it’s humorous, so much the better. Here are a few senior-specific ideas: “How Shifting Into Reverse Can Help You Move Forward”, “You’ve Paid for Your House; Now Let Your House Pay You!”

• See the audience as your support team. No matter how many butterflies are hatching in your stomach, remember that the people seated before you have come here with one purpose: to hear what you have to share. They want you to succeed! View the audience members as your allies, and don’t apologize for being nervous.

• Reframe anxiety as enthusiasm. Excitement and nervousness are identical emotions in the body — it’s all a matter of perspective. Keep your focus on how the information you have to share will help your listeners improve their lives, grow their businesses, or whatever your topic is designed to do, and this intention will come through. Speak directly to one individual at a time, and speak from the heart. Your public speaking jitters will be perceived as enthusiasm for your subject — which, in fact, is true.

HECM Borrowers Receive Bankruptcy Notice

HECM borrowers with loans serviced by RMS have questions after receiving bankruptcy notices from Ditech

The financial woes of Ditech have been documented in recent months. The parent company of RMS (Reverse Mortgage Solutions) is sending out required notices of Ditech’s bankruptcy proceedings which have triggered concerns for many borrowers.

We received the following contribution from Tim Linger HECM Senior Home Financing which spells out what borrowers with loans serviced by RMS need to know.

Submitted by Tim Linger

Borrowers with HECM loans serviced by Reverse Mortgage Solutions (RMS) are receiving letters indicating the bankruptcy filing of Ditech, a parent company of RMS. As you can imagine, borrowers are concerned.

HECM loan servicing is an important part of the overall HECM process. Reverse mortgage loans stay in this final stage of servicing for the majority of their existence. The other loan stages such as origination, processing, underwriting, closing, and funding, are rather brief in comparison to the servicing period.

The originating broker or initial lender may or may not be the servicer of the HECM loan. In all likelihood, the loan’s servicing rights may be transferred between servicers during the life of the loan and perhaps, even assigned to HUD’s contract servicer before the loan is ultimately terminated.

The servicing company is important to the borrower(s) because their servicer is the central point of contact when questions arise about their loan.

What happens when the servicer ceases operations or no longer services the HECM per the original loan contract? The answer is, per HUD’s guarantee, even though the loan servicer may change, the terms of the HECM remain the same.

You see, the rules of reverse mortgages are determined by the written promises made by the lender to the borrower(s) in the legal closing documents (Note, Deed of Trust and Security Agreement) that the borrower(s) signed at the closing of the HECM.

Regardless of who services the HECM, the borrower(s) can only require those specific items agreed upon in the initial legal documents signed at closing. FHA insures the HECM and therefore, guarantees that no matter may happen to the Servicer, the borrower(s) continues to have a safe and valid contract.

The two common questions from Borrower(s) are: ‘is my HECM safe and, ‘what do I need to do?

First, don’t panic. The purpose of FHA’s Mortgage Insurance Premium (MIP) should give all Borrower(s) full faith that the full faith of the federal government (FHA / HUD), is backing the HECM program and the terms of the loan. The servicer is ultimately communicating what FHA has promised and their guarantees are solid – as solid as the federal government. Yes, the HECM is safe.

Second; What do I need to do? Nothing, unless the borrower(s) feel they have a claim to file. Rest assured that FHA is on the case! HUD guarantees that the loan will be serviced properly, or that the servicing rights would be transferred to another servicing company. Monthly statements, loan proceeds, lines of credit, additional fees, and all terms of the contract will not be affected or changed by any entity, including RMS or it’s parent company’s (Ditech) bankruptcy filing. Sit tight and relax, everything is going to be alright.

Written by Tim Linger, CHS, CRMP, CSA, President of the HECM Association

Tim Linger is a Certified HECM Specialist, Certified Reverse Mortgage Professional, Certified Senior Advisor, and the President of the HECM Association – a 501(c)3 non-profit trade association. Tim has nearly 20 years exclusively in the reverse mortgage arena and prides himself on knowing the HECM thoroughly. Tim is based in Orlando Florida and is the owner of HECM Senior Home Financing Inc. His brokerage focuses on the HECM for Home Purchase. Tim can be reached at TimLinger@HECMsenior.com or direct at 321-356-9229

No Reason to Panic

It’s not just the HECM market that led to Live Well’s exit

It’s been quite some time since a top-ten HECM lender has left the industry. The news of Live Well Financial’s sudden exit from reverse mortgage lending last Friday left many somewhat stunned. But in fact, the company is ceasing all origination activities for both forward and HECM loans.

In the most recent Top 100 HECM Lenders Report for April, Live Well posted 74 loans, 350 for the year to date (Jan-April). If you compare their 2018 production in the same period you may see one of the reasons for their exit. In April 2018 Live Well had 114 endorsements with 605 HECMs endorsed that calendar year to date.

While many may find the news unsettling, the exit of Live Well was thought by some to reflect a more organic response to an ever-changing market. Just one short year ago the lender announced their intent to emphasize forward or traditional lending, which the company had been originating since their founding in 2005.

The reasons behind the lender’s sudden shutdown were unclear until the Richmond Times-Dispatch published an excerpt yesterday from the company’s notice filed with Virginia employment officials.

“This reduction in credit availability combined with challenging conditions in the markets for mortgage loans, which were conditions outside of the company’s control, along with related regulatory issues, have resulted in the company having insufficient available cash to continue operations”, the notice stated. The cash-crunch was triggered by sudden and unforeseen market changes in specific financial assets the lender used as collateral in gaining credit.

Such credit arrangements are common in mortgage lending and servicing.

Live Well’s exit while disappointing should be kept in perspective noting the unique and specific challenges that triggered the closure of both traditional and reverse operations.

HECM Lenders Live Well LiveWell

Obscure Summer Holidays Open Doors

We have discussed a creative way for reverse mortgage professionals to celebrate with seniors all year long: unusual monthly holidays that, with a little ingenuity, could be customized as ongoing marketing events.

Have you taken advantage of this idea? if not (or even if so), here’s a mid-year update of the National Day Calendar to help you spice up summer. You can have some fun with these.

For instance: June 26^th is National Beautician’s Day. Many older women have a dedicated, long-term relationship with their hairdresser. Perhaps you’ll want to organize a Beautician Bake Off, where elders honor their hair stylists with a delicious baked gift. (If they don’t bake, they can always buy a nice pie — or a bag of donuts, depending on their stylist’s taste. Men bake, too — and men have hair stylists, even if they call them barbers).

June is replete with yummy celebrations, all great opportunities to throw an informal gathering for prospects: National Strawberry Rhubarb Pie Day (June 9th), National Peanut Butter Cookie Day (June 12^th), National Fudge Day (June 16^th), National Pralines Day (June 24th), and National Chocolate Pudding Day (June 27th). Several of the Day pages even include recipes.

Or maybe you’d simply like to invite your clients and prospects to bring their specialties to a dessert potluck. It’s one day when calories don’t count!

And of course, the yummy days continue into July…after all, the 4^th is our national eat-all-you-can-cook-out — um, Independence Day — celebration. But July 3^rd is also intriguing: it’s National Compliment Your Mirror Day, a wonderful opportunity to boost seniors’ self-esteem. Similarly, July 26^th is National Disability Independence Day, which commemorates the signing of the Americans with Disabilities Act (ADA) in 1990. It’s a chance to recognize and discuss the benefits of HECMs for the Differently Abled.

The entire month of August is Admit You’re Happy Month, another super opportunity to create a roundtable discussion with your target audience about what makes them happy and encourage them to share their happiness suggestions with those who may be feeling less upbeat. After all, it’s no accident that Pharrell Williams’ song Happy reached more than 250 million YouTube views within six months of upload.

Finally, remember that July 18 is the quarterly “Get to Know Your Customers Day”, a perfect reason to combine any of the above ideas and more into an informal schmooze that seniors can happily anticipate. Especially if you happen to have some fudge on hand.

When is it time to get help?

Tools for Family Caregivers

Millennials are at the forefront of easing the aging process for today’s elders, from tech innovations that enhance senior living communities, to apps that facilitate difficult end-of-life discussions.

But what happens even earlier in the process, when Mom or Dad (usually Dad!) refuses any sort of in-home help, except perhaps for the occasional housekeeper? How does a family know whether their loved one is truly safe living alone at an advanced age, even if he or she is still fairly healthy?

Nate O’Keefe had the same questions, so the Millennial entrepreneur founded Roobrik, a series of online decision tools designed to provide family caregivers with the information they need to make the right choices at the right time.

Roobrik offers a trio of assessment tools that help family members or concerned others (perhaps the senior’s reverse mortgage advisor, for example) determine whether changes to a senior’s lifestyle might be in order. Each tool scrolls through a series of questions, becoming more personalized with each response. Based on the respondents’ answers, Roobrik lets you know whether immediate intervention would be prudent, or if it’s safe to simply keep a watchful eye on the situation for now. The current tools include:

1. Is it time to get help?
2. Is it still safe to drive?
3. Is it dementia?

Preventing Exploitation

Tools such as Roobrik may also help reduce the incidence of elder abuse, which Chronic Care Advocacy calls “an under-reported epidemic” due to factors such as social isolation, lack of caregiver education, and reluctance to report. And it isn’t necessarily physical. According to the National Research Council, exploitation is the most common form of elder abuse.

The Older Americans Act defines exploitation as, “fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or fiduciary, that uses the resources of an older individual for monetary or personal benefit, profit, or gain, or that results in depriving an older individual of rightful access to, or use of, benefits, resources, belongings, or assets.”

Protecting your reverse mortgage clients, prospects, and other seniors in your sphere begins with understanding the risk factors that innovators such as Roobrik are enabling families to assess, and knowing what preventive measures are available.

Caring for the Caregivers

While older adults with cognitive impairment may be at greatest risk of exploitation, a huge risk factor is caregiver stress and burnout. Some of the tech solutions to ease caregivers’ work can make all the difference, as can caregiver recognition that they can’t do it all, and need to care for themselves as well as for the elder in their charge.

In addition to communicating with other close friends and family members who can support the caregiver, the Office of Chronic Care Advocacy urges seniors to use professionals to ensure their financial and legal affairs are in order, including a properly drafted estate plan with safeguards in place.

When the circle of care extends to everyone involved — a network in the truest sense — elder loved ones, their families, caregivers, and professional associates will all be well served.

caregivers caregiving seniors

Being a Happy Realist in the HECM Marketplace

Realistic Optimism?

No matter how you slice it, HECM endorsement volumes are down- significantly. The first quarter of 2019 has

48% fewer endorsements than Q1 2018. Even when factoring in the lagging endorsements from the late 2018 rush to beat October 2, 2017, HECM changes– the trend is undeniable. HECM volumes have broken their previous cycle of ‘secular stagnation’ with drops and rebounds as a new trend appears.

While the October 2017 cutbacks to the HECM’s principal limit factors and dropping the interest rate floor may have reduced the program’s risk to the MMI Fund, they have also prompted an extended slump in HECM lending volumes.

What may frighten and dismays us may not be our industry’s falling loan volume, but the way in which we think about it.

A number of factors may be contributing to fewer HECM endorsements should be kept in mind:

A reduction in Principal Limit Factors (10/2/17)
A reduction in the interest rate floor (10/2/17)
Attrition in the HECM salesforce (originators/brokers)
Internal beliefs by originators on the value of the HECM for the consumer
Fewer marketing dollars to invest
An uptick in jumbo reverse mortgage loans
Increasing mortgage debt held by older homeowners

The good news is that the vast majority of older American’s wealth is tied up in their home- which means policymakers will have to find a way to sustain the reverse mortgage financially while retaining it as a viable solution. Although President Trump’s call to examine the ‘financial viability’ of the HECM program may be just cause for concern, it may be the impetus to finally isolate the true causes of ongoing HECM claims against FHA’s MMI Fund.

HECM industry outlook

Customer Service, You Say?

True Customer Service is Subtle & Sincere

Actress Andie MacDowell became embroiled in a minor brouhaha. She was seated in coach on a flight instead of the first class seat she’d paid for, and gosh, it was disheartening to hobnob with the unwashed masses.

At least, that’s how the media spun it. Actually, MacDowell insists, she just wanted to receive the level of customer service she’d purchased.

Customer service seems to be going the way of the landline phone, which is unfortunate — especially in a service business. Yet providing stellar service doesn’t need to be a big deal. Consider these contrasting scenarios:

Heartbreak Hotel?

True service is subtle and sincere.

Many years ago, I took a colleague who was in town for a conference to lunch at Campton Place, a five-star San Francisco hotel. Lunch for the two of us was $30 before tip (about $55 today). My colleague murmured, “I don’t mind paying $30 for a meal like this; it was worth it.” And while the lunch was scrumptious, she wasn’t referring to the food so much as the five-star service: waitstaff who magically refilled water glasses and bread baskets before we even thought to ask, and presented each course with a flourish. The message was clear: there is nothing we would rather be doing than serving you.

Shelley related what had transpired at her own hotel. Her complicated surname was misspelled on her name badge. She asked for a new one. The staff told her, “We’re busy now; come back later.” She did, and the extra badges couldn’t be located. Finally, she took a felt tip pen from her purse and redid the badge herself.

I described a similar experience at the library. (This was before Google and smartphones solved our research requests instantaneously.) I needed a single page of information from a reference book at a different location. My librarian verified its availability. When I drove across town to the other branch, the book was in use upstairs. I asked whether the librarian could fax me the page I needed when it was available if I paid for it now, reasoning that it would just take her a minute and would save me another trip across town. “Oh, no,” she replied with a tinge of amazement, “We don’t have time for special requests like that here.”

Service With A Smile

The loan officer who called my attention to the dearth of service in service businesses said, “The lack of good customer service can be a real detriment to future incoming business, and I have always prided myself on doing things the right way. I also taught this as a topic as an adjunct professor at our local college.

“There is a motto that sums it up: ‘Treat People Right’. It is packed with what should be done to preserve your client relationships and grow new ones.”

How do you do this in your reverse mortgage business? It’s easier than you may think. Kissmetrics suggests eight (here are four) fresh customer service ideas that can work for the reverse mortgage industry, such as:

1. Make a video. For senior prospects, seeing a friendly face answer basic HECM questions creates a connection before you or they even pick up the phone. This HECMWorld blog post describes how to create a compelling, service-oriented reverse mortgage video.

2. Publish reports. Take one of our weekly blog posts that focuses on senior topics, such as this piece on eight ways to transition into retirement, or this one on the value of embracing change, create a brief “report”, and email or snail mail it with a personal note, suggesting your prospect may find the material of interest. This builds credibility, with a warm fuzzy: everyone loves getting personal mail, especially seniors — and especially in the form of a letter they can hold in their hands.

3. Send a personal thank-you note. Like the above, hand-written thank-you notes are so rare you’ll immediately catapult to the head of the class. It takes almost no time to dash off a line of appreciation to the senior prospect or client by name, on your good stationery or on a greeting card.

4. Showcase customer support. Just as people have confidence in 5-star reviews, it pays to show off your customer kudos. If you have a Reverse Focus website, let prospects (and clients) see those client satisfaction ratings and testimonials. As the Kissmetrics blog states, “not only does it help potential customers make a decision, it also helps reaffirm the faith existing customers have in them.”

You have the potential to be a Campton Place in every transaction. All it takes is a firm commitment to client care.

customer service Reverse Mortgage sales

Marketing Psychology: Brand Aid for Brand Y-O-U

A great product or service, industry expertise, and an excellent consumer awareness campaign. These are the keys to business success, right? Not exclusively.

Though it seems “personal branding” has always been an essential component of the small business landscape, Tom Peters (In Search of Excellence) only coined this phrase in 1997. With the explosion of the Internet and, more recently, social media, being branded is no longer the purview of cattle. In fact, if you don’t clearly define your brand, you might resemble another farm animal: sheep.

While demographics and customer profiles provide useful marketing data, social psychology plays a more pivotal role in buyer behavior than even social media — especially if clients are unaware of these subtle influences on their purchasing decisions.

Consider the following when developing your marketing strategy:

Small Favors First. In one famous experiment, psychologists asked homeowners to place a small sign in their window in support of safe driving. Two weeks later, a different person asked the same group to put a large sign in their yard advocating safe driving. A second group was only asked to place the yard sign. The outcome: more than three-fourths of those who were first approached with the small window sign request said yes to the yard sign; in contrast, a scant 20 percent of the second group agreed to the yard sign.

Marketing message: Start small to gain a foot in the door. An initial “yes” forms a bond with the prospect. Ask if you can share some information about what your reverse mortgage prospect expresses interest in, whether that’s safe senior travel tips, creative ideas for how to live large later in life, or alternative elder dwellings, such as senior cohousing. Once you’ve forged this connection, you’ll have a natural segue to talk about a reverse mortgage.

What Would Nate and Nancy Do? Peer influence is powerful, both personally and professionally. To encourage customers to reduce their energy consumption, one utility company told them, “Your neighbors are reducing their energy use.” This tactic was more effective than simply asking people to lower their energy consumption.

Marketing message: Show prospective clients how their peers have taken a similar action. This is where testimonials from satisfied HECM loan recipients can tip the balance in your favor.

Home Sweet Home. Environmental cues subconsciously influence our decisions.

Marketing message: Try to meet with reverse mortgage prospects in their home rather than your office. Being at home while considering their long-range financial needs can be a powerful motivator to move forward.

In addition to these social psychology tips, personal branding guru William Arruda suggests a number of trends that will brand you successful:

Outsourcing. Don’t try to DIY; focus on what you do best (working with prospects and clients) and bring in support for the rest.
Video. We recently explored how loan officers can send prospects videos that introduce the concept of a reverse mortgage. Reverse Focus president Shannon Hicks uploads two weekly videos to enhance your knowledge base and business, so you already grasp video’s value as a marketing tool.
Coaching. Coaching is now becoming integral to corporate leadership development. Hiring a business coach might be a good way to hone your brand’s focus.
Blogging. With the advent of LinkedIn’s blogging platform, your business has the potential to reach hundreds of thousands of viewers every time you post. And some of them (or their parents, colleagues, friends, neighbors…) are going to be in the market for a reverse mortgage.
App-solutely Accessible. Mobile will be the name of the game in 2015 as never before, says Arruda. Are you prepared to “brand on the run”?
Personal Website. While LinkedIn, Facebook, and a number of other sites already provide a platform to create a personal web page, Reverse Focus enables you to create a branded site that’s focused on your business as a reverse mortgage professional.

Finally, when you give a talk at a senior center, Rotary Club, or other professional setting, be sure to bring branded products as leave-behinds or for back-of-the-room sales. You can provide postcards, pens, fridge magnets, or whatever other logo products you deem appropriate for your target market as giveaways, and offer your book (if you have one), DVD, or other products for sale. Be sure every item contains your contact information, logo, and business card.

Marketing