Now that the dust has settled what does the road ahead hold for us and how can we best prepare?
Continue readingDo What?!
7 Not So Secret Tips for Success…
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By now most of you are familiar with the new HECM product, first year distribution limits, upfront MIP charges, etc. The question is on a broader level what can you do each day in position yourself and your reverse mortgage business for success in the coming year? Here are just a few things to consider. #1- Know your priorities. You will never be able to do all things. That’s frustrating for you Type A personalities out there but honestly, it’s impossible. To avoid frustration and burn out write out your priorities. For most of us it’s prospecting and outbound calls. Time block each day of the week when you will be making sales calls and PROTECT that time from any other demands. #2- Focus. Multitasking is a sure way to do several things half-good. It’s also a more productive form of procrastination…
Face the Music
With the reverse mortgage industry re-tuning in a major key, it’s helpful to make the most of every opportunity to connect, communicate and collaborate for enhanced business success in 2014 and beyond.
Continue readingThe Three Horsemen of the Retirement Apocalypse
The Three Horsemen of the Retirement Apocalypse. It’s no secret. The retirement system in America is broken.
Continue readingProtecting Your Greatest Asset
Protecting Our Greatest Personal Resource
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Protecting your greatest asset. Our greatest assets are not our bank balance, the home we live in or the car we drive. It’s our attitude and outlook. Our attitude determines our achievements, relationships and success. Our attitude can make living the life we want easier or more difficult. I’m sure you will choose easier. As you know these are not the easiest times for the reverse mortgage industry. With that in mind here are some practical ways you can build and protect your greatest asset….your attitude. #1-….
Elder Wisdom: What A Tale Their Thoughts Could Tell
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Gordon Lightfoot (whose signature lyrics from If You Could Read My Mind are reflected in the post title) turns 75 this November, and Bob Dylan has said that when he listens to a Lightfoot song, he “wishes it would never end.” That’s pretty high praise from a fellow septuagenarian maestro. Perhaps this is because seasoned songwriters instinctively weave life’s essence and lessons into a succinct truth that resonates to the marrow with those who listen, and thus appeals across the decades to both original fans as they age, and to a new audience.
The same might be said of elders. There’s so much wisdom to be gleaned from older team members. Consider this recent ad on CraigsList.com, headlined, “Looking for a 72-year-old writer”:
“I’m looking for a few good writers between the ages of 70 and 74. Seeking contributions from geographical locations all over the United States from persons who were in high school during 1959. For details about my project please go to http://www.classof59.net. It is okay if someone younger writes a contribution that was obtained orally from a member of the high school class of 1959.”
What a lovely tribute to what has been labeled, “The Silent Generation.”
“It is not how old you are, but how you are old,” said Academy Award-winning actress Marie Dressler. We’re moving from a model that focuses on disease, disability and death to one of “passion, purpose, and participation,” which happens to be the tagline of COPA (Collaborative on Positive Aging), a new volunteer division of the Council on Aging in one California community.
At the initial COPA gathering, much of the guiding wisdom for how future meetings might be organized was provided by people in their 70s and 80s, such as: “To remain vital, we need a mix of social/learning/leisure/contribution.” How perfect a reminder to anyone who serves seniors — reverse mortgage professionals obviously included — that as people age they become not a group apart, but more of who they’ve been, with a blend of needs and desires to enrich and fulfill these later years.
Consider the Sun City Poms, Arizona cheerleaders whose minimum age requirement is 55, along with the requisite “dance skills of rhythm, agility, poise, energy, and showmanship for performing. Acrobatics and baton twirling are a plus.” Wow! These women are weaving their social, leisure, learning and contributing into a bountiful blessing for everyone.
In his brilliant essay on conscious aging, Rabon Delmore Saip, a presenter at the COPA meeting, quotes developmental psychologist Paul Baltes: “One of the great challenges of the 21st century will be to complete the architecture of the human life course.”
The seniors reverse mortgage professionals serve today are playing a vital role in constructing the future of humanity, as they (and we) reinvent what it means, and what it “looks like”, to be “old”.
Market Downside = Opportunity
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Opportunities are Created in a Down Market
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It’s been a double hit for many. First the elimination of the popular federally-insured Standard fixed rate product in April and this month…the elimination of all existing products for one with first year restrictions on distributions. It’s a new age in reverse mortgage lending. One where competition is down and opportunity is up for those who adjust to the new product environment. The immediate impact of product eliminations is being felt as endorsements were down 16% after the April 1st elimination of the Standard Fixed Rate. What will our numbers look like three months from now for loans closed post October 1?
Those impacted the most in the wake of the Standard Fixed Rate elimination are those whose business model was heavily vested in fixed rate loans. Those with more a more diverse source of loans faired better…
42 Applications in September?
How Reverse Focus’ Sales Engine Helped Make it Possible
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Steve Eastman is a successful and well known reverse mortgage originator in Maine working with Security One Lending. Like most anticipating the changes to the HECM Product he made it a priority to reach out to those who may have expressed interest in a reverse mortgage but had not moved forward…yet. Using Sales Engine (CRM) he was able to mine his past leads and generate 42 applications in the month of September.
Visiting the Hippocampus
The hippocampus (which isn’t remotely related to a hippopotamus) is the part of the cerebral cortex that has to do with memory.
Continue readingSmart Planning with HECM60
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Set Yourself Apart as a Reverse Mortgage Planner
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#1 Distribution limits. Your reverse mortgage borrowers with high existing mortgage balances will only be impacted by the lower Principal Limit Factors NOT the Distribution Limit. That’s right. HUD allows for those with mandatory obligations of a mortgage payoff that when combined with closing costs and required set asides to use up to 100% of the gross principal limit. Here’s an example. Harry Homeowner qualifies for a Gross Principal Limit of $200,000 but has a mortgage payoff of $160,000, a repair set aside of $13,000 and closing costs of $5,000. That’s total mandatory obligations of $158,000 or 89% of the Principal Limit. That’s right, we broke through the 60% first year cap. #2 Cash at closing? Yes, it makes sense for those with access to funds to avoid not only the upfront 2.5% FHA Mortgage Insurance Premium but also younger borrowers who want to reduce the lifetime cost of the loan.