8 strategies to boost sales in a challenging mortgage market.
Continue reading8 Sales Strategies for an Ugly Mortgage Market
8 strategies to boost sales in a challenging mortgage market.
Continue readingShould I live under a bridge?!
The common objection to reverse mortgages is that they’re too expensive. The question is, expensive compared to what?
Continue readingAre reverse mortgages expensive? Compared to what?
The common objection to reverse mortgages is that they’re too expensive. The question is, expensive compared to what?
Continue readingThe HECM: Yesterday, today, and tomorrow
A brief history of the Home Equity Conversion Mortgage (HECM) program, present challenges, and opportunities.
Continue readingWe fear what we do not understand
What happens when someone is confronted with something they don’t know or understand? They’ll likely experience anxiety, apprehension, or even panic.
Continue readingSeven Ways to Work Happier
The following is from an earlier publication authored by Amara Rose.
We spend a lot of time focusing on ways to enhance the reverse mortgage experience for mature adults. Just as crucial, however, is the care of the reverse mortgage professional. The more relaxed, healthy, and well-rested you are, the better you’ll be able to listen and the more thorough and specific the service you’ll provide.
Here are seven ways to improve your workplace, mood, and manner:
- Order in the workplace! There are people who can pull the precise piece of paper they need from a chaotic jumble on their desk. However, a well-ordered work area makes this exponentially easier. Think about placing your important documents in color-coded file folders, or whatever system suits your personality, available space, and daily needs.
- Let there be light. Unless you have full-spectrum lighting, sun exposure through windows is preferable to sitting under fluorescent bulbs, which can weaken eyesight with their rapid, undetected blinking. Another health benefit of natural light is improved sleep, which affects the quality of life — and encourages people to get more exercise because they finally have the energy for it.
- Go for the green. While plants improve air quality by breathing carbon dioxide and giving off oxygen, they also decrease stress and increase productivity by 12 percent, says a new AARP report. Maybe not a huge enhancement, but where else can you get a daily brain boost for the price of a little watering?
- Vary the sitting. It’s a conundrum: sitting for more than four hours a day has been shown to increase the odds of developing cancer, diabetes, high blood pressure, and heart disease — ouch! — yet standing at a raised desk can lead to varicose veins, knee or ankle problems, and carpal tunnel syndrome. What’s a health-oriented reverse mortgage professional to do? The AARP article suggests (no joke) a treadmill: one study found those who walked during the workday lost weight and enjoyed greater productivity after one year.
- Of course, you could simply take a tip from one manager who possessed a lot of kinetic energy: he paced his office while talking on the phone, which burned calories, kept him from sitting or standing too much, and dispensed with the need for a treadmill.
- Trust your animal instincts. A growing number of office buildings permit pets (and if you own the building, you get to make the rules). Pets help reduce stress, boost morale and collaboration, and raise efficiency.
- Go walkabout for lunch. Give the sad-sack lunch-at-your-desk routine a pass and take a walk in the park; eat your meal while watching the birds. Or call a colleague and suggest you try that new sushi place. On the other hand, if you need to work on a closing or other mental task, staying focused at your desk is probably a better idea. Just try not to make a habit of it.
- Music to your ears. While the younger generation seems to have earbuds surgically implanted, the AARP story does note that workers listening to music tend to complete tasks quicker and come up with better ideas than their quiet-loving colleagues. If you prefer to save music for after business hours, it still helps reduce stress, so listen to what you enjoy most when you’re unwinding at home, or on the drive there.
The Most Vulnerable Housing Markets
Report reveals the most at-risk markets
It’s no secret that home values are a linchpin of reverse mortgage lending. Higher home values increase the likelihood that reverse mortgage applicants will qualify while falling home values typically result in more applications being deemed short-to-close and lower consumer interest.
In the first weeks of the COVID-19 pandemic, many began to suspect a housing crash was on the horizon. After all, the economy essentially came to a screeching halt with most office workers working remotely from home. That was the case until real estate professionals were deemed essential workers and the Federal Reserve repeatedly slashed interest rates triggering a historic runup in home prices. Mortgage professionals of all types breathed a sigh of relief and reaped the rewards of higher home values and record refinances.
Today a nationwide housing crash is highly-doubtful yet several markets around the nation are beginning to show weaknesses that could lead to a housing downturn.
Reverse mortgage professionals will want to see which housing metros they market in that may be at risk.
Real estate data aggregator and software provider ATTOM recently released its Special Housing Risk Report highlighting the most vulnerable housing markets. Their conclusions are drawn from fourth quarter 2023 foreclosure, affordability, and negative equity data.
The Big Picture
California, New Jersey, and Illinois have the most at-risk markets in the country. Not surprisingly these are the states that have seen some of the largest gains in home prices. These three states account for 34 of the 50 counties most at risk of a significant decline in home values.
Key Performance Indicators
Vulnerable Markets
- Tulare County, CA (10.2 percent)
- Merced County, CA(8.5 percent)
- Kings County, CA (8 percent
- Kern County (Bakersfield), CA (7.8 percent
- Fresno County, CA (7.6 percent)
- Butte County (Chico)
- Sacramento County
- El Dorado County
- Solano County
- Fresno County
- Kern County (Bakersfield
- Kings County (outside Fresno)
- Madera County (outside Fresno)
- Merced County (outside Fresno)
- San Joaquin County (Stockton)
- Stanislas County (Modesto)
- Tulare County (outside Fresno)
- Riverside County
- San Bernardino County
When the well runs dry
Tapping a dry well?
According to the latest FHA Single Family Production Report, FHA case number assignments for new HECM applications fell in November and December.
In their latest newsletter, Reverse Market Insight aptly titled their February report ‘Dry Well’.
For farmers or ranchers, the first signs of a nearly-depleted well are reduced water pressure, sputtering or inconsistent water flow, or sediment. In such situations, well-users may deepen the well, find another aquifer, or check for blockages.
For reverse mortgage pros, several strategies may be employed to find a new source of applicants and potentially get the leads flowing again.
Know your marketing niche:
Where is it that you shine the brightest? Is it networking with local financial professionals, banks, or real estate agents? Look back to where you’ve been most effective and if those efforts have been set aside, make a plan to reengage.
Where is it that you shine the brightest? Is it networking with local financial professionals, banks, or real estate agents? Look back to where you’ve been most effective and if those efforts have been set aside, make a plan to reengage.
Focus on referrals:
Are you consistently seeking and receiving referrals from your previous borrowers? One way to spur a referral is to ask for a review of their experience. Another key engagement that’s often overlooked is annual check-ins. Even better, call your borrowers who closed two months ago and go over their first loan statement, how to request credit line withdrawals, or answer any questions they may have.
Remember, superior service is fertile soil for referrals.
Use video email campaigns:
Did you know you can make a short custom video for a potential borrower and embed it in your email? Doing so vastly increases the odds they’ll click on the video and hear what you have to say. Loom or Bomb Bomb are great platforms for video marketing.
Show, don’t tell:
If you’re sending an email with a 48-page reverse mortgage loan proposal many of your prospective borrowers are prone to tune out or be overwhelmed. Instead, consider doing a short screencast using Loom to explain each page.
Host virtual training sessions:
People want to help those who provide value. Consider hosting regular online sessions covering how reverse mortgages work or dispelling the common myths about the loan. Send out an email invitation with yes…a short video link so they’ll open your message and RSVP.
Work your database:
To put it simply, a reverse mortgage professional without a Customer Relationship Manager (CRM) is like a ship without a sail.
Revisit your records in your CRM (such as Sales Engine CRM), and filter fields for the most likely prospects. Schedule an email drip campaign, or reminders to call them periodically.
In conclusion:
Try some of these strategies to quench your thirst for new leads and closed loans. Find out which works best for you or tweak the methodology to suit your sales style.
If you’ve found some success in drumming up new business please share your ideas in the comment section below.
Is a Reverse Mortgage a ‘crazy-butt idea’?
Don’t explore those options!
Reverse mortgage professionals are well familiar with Dave Ramsey’s dim view of reverse mortgages. When Dina, a caller to The Ramsey Show said she and her husband have no heirs and were considering a reverse mortgage Ramsey and his cohost reacted dramatically as if she said she was planning to light her hair on fire.
“We don’t have any heirs. Can I do a reverse mortgage?”, said Dina.
“What are you saying?!” replied co-host Jade Warshaw. “Where is that woman who called and said she listened to the show? What did you do with her?” Ramsey quipped.
A recent Yahoo Finance column recounts how the call to one of America’s most popular financial talk shows played out. “Quit entertaining these crazy-butt ideas”, said Ramsey.
Dina is a 59-year-old teacher who mere months from retirement was looking into options to finance much-needed renovations on their home stated that she and her husband were considering a HELOC or a reverse mortgage.
Their reported combined annual household income is $158,000. Dina says she could pay off the mortgage by August with her projected savings and a $28,000 tax-sheltered annuity.
“I’m exploring options”, Dina said. “Don’t explore those”, replied co-host Warshaw.
Don’t explore options? Why not? Because Dave doesn’t like reverse mortgages?
What’s unknown is how much household income they will receive after Dina retires or if her husband’s income will remain the same. What we do know is Ramsey tends to paint with broad brush strokes giving advice that may not consider the unique circumstances of each caller.
Here are some questions Dina may want to weigh on how to pay for her home renovations.