Cookie-Baking Granny … Or Purple-haired Artist? Marketing to the Mature Home Owner / Part 3

In the Leave It to Beaver and My Three Sons era, grandmas wore aprons, baked mouth-watering cookies, and indulged their grandchildren in ways mom and dad would not. Grandpa might have been a bit gruff, but his grandchildren knew his arthritis was acting up, and he loved them even if he couldn’t run and toss a ball like dad. Had reverse mortgages existed back then, our grandparents probably wouldn’t have known what to do with them.

Welcome to the third millennium. Lillian, age 83, sports fuchsia-streaked hair and a dry wit. After lovingly nursing her husband through a long illness, followed by a grieving period, she’s now so busy she doesn’t have a lot of time to chat.

She’s creating charcoal portraits of the hospice staff that cared for her beloved during his final weeks. (Lillian only discovered her artistic talent at 70, when she enrolled with her daughter in an art class). She also tutors several high school students, and participates in a discussion group at the local college. She often eats meals out because she hasn’t time to shop, cook, and keep up with all her activities. Fortunately, she has the financial freedom to enjoy her unorthodox lifestyle, unfettered my monetary concerns.

Lillian is by no means unusual among today’s dynamic elders. (See previous post, Marketing to the Mature Home Owner / Part 2 . Though some seniors may still live as our grandparents did fifty years ago, many more are coming into their own late in life, taking up hobbies they’ve just discovered, like Lillian, or those laid aside while raising a family and working long hours. The calendar may call them “old,” but they’re still giving younger folks a run for their money, pun intended.

The best way to reach these reverse mortgage prospects? Remember that people don’t usually change dramatically just because they age; they simply become more of who they’ve always been. So in marketing reverse mortgages to 70-plus homeowners, appeal to their independence and interests, engage their intelligence, and you’ll be rewarded with a concomitant interest in reverse mortgages — and some wonderfully unique new clients.

 

Not saying anything is often times doing harm to clients

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Does the doctor really know what’s best?

What if you went to the doctor and they didn’t know about a life-saving treatment that had been used for 20 plus years and you left becoming worse? That’s similar to the situation many retirees find themselves in when meeting with financial planners who either don’t know about, or misunderstand reverse mortgages. It is a potential solution that should always be considered and presented for the client (patient) to choose.

We look at the changing perspective of financial professionals and the need for our industry to spearhead an effort to educate the financial community at large about the uses and functions of a reverse mortgage.

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Remembrance: What makes us strong. Friday’s Food for Thought

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During this week of remembrance here are some things to remember that have made the reverse mortgage industry stronger:

  • We’re not selling loans, but changing lives
  • Our industry has improved consumer education, product choices, and costs
  • 4 million plus Baby Boomers will reach retirement age each year
  • We are getting traction in the mainstream media
  • Investors and the secondary markets support our product
  • We will remain as a long-term solution for years to come.

Reverse Mortgage Industry

Worth fighting for: Friday’s Food for Thought

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We may feel we are on the ropes, but there are some things worth fighting for as reverse mortgage professionals.

Our rights as originators:

  • Fairness in regulation (NMLS renewal)
  • To be included in regulatory discussion
  • To be treated as a professional not a predator by lawmakers

Our responsibilities:

  • To be ethical in all we do
  • To continually improve our knowledge & skill set
  • Participate in industry support, discussions and trade groups
  • To preach the gospel of the reverse mortgage

 

Solutions for borrowers to age in place. Part 3

How Reverse Mortgages Can Help SeniorsHow Reverse Mortgages Can Help Seniors Age In Place, Part 3

Each year, more than 22,000 agencies nationwide provide home care services to over two million people, and as the population ages, these numbers will continue to grow.

Like the senior described in How Reverse Mortgages Can Help Seniors Age In Place/Part 2, who was able to return home after a serious accident because she hired a live-in attendant, a helping hand may be the deciding factor in whether a senior is able to age in place — and thus, whether they’re a reverse mortgage lead.

It’s helpful for reverse mortgage professionals to know what care is available, so you can suggest these options to seniors (or their loved ones) to help them remain at home as they age.

Here are 7 services that can make it easier to age in place:

  • Homemaker Services – Help with household maintenance: cooking, light cleaning, laundry, grocery shopping, and other household tasks.
  • Personal Care – Assistance with a variety of daily living activities such as bathing, dressing, grooming and eating.
  • Companion – From daily telephone calls from a “buddy,” to regular friendly visits.
  • Health Care – Skilled care that can include nursing visits, as well as speech, occupational, physical, or respiratory therapy.
  • Senior Centers – Daily, facility-based social programs in a community center setting. Transportation to and from the Center is sometimes provided.
  • Live-in Help – A full-time, live-in attendant may offer a combination of homemaker and personal care assistance, and other non-medical support services.
  • Support Groups – Support for issues about aging, peer companionship, illness-based and grief support, and other topics to help seniors experiencing life changes or specific challenges.

Aging in place is what many seniors desire and deserve. Knowing the range of service available to both enable them to remain at home, and to make a temporary or permanent move elsewhere should the need arise, you’ll be well equipped to respond to the concerns that crop up as seniors contemplate a reverse mortgage.

 

Minnesota Attorney General Pushes Reverse Mortgage Legislation

Minnesota’s legislators and attorney general, concerned about disreputable mortgage brokers and lenders taking advantage of seniors, have introduced a bill that would allow borrowers to rescind a reverse mortgage for up to 30 days.

The legislation, introduced in both the state House of Representatives and Senate yesterday, states that borrowers would be able to rescind a reverse mortgage for up to 30 days after “execution,” a term that suggests rescission could occur after a loan has been made. Once seniors notify the lender that they want out of the loan, they have 15 days to return any money received, according to the legislation, and any mortgage filed in connection with the loan would be null and void upon rescission. 

During a press conference yesterday, Minnesota Attorney General Lori Swanson told reporters that the bill was aimed at preventing another subprime crisis in the reverse mortgage industry, according to an account in the St. Paul Pioneer Press.

“Some brokers and lenders who contributed to the mortgage meltdown are now sliding over into the reverse mortgage business, and we need to make sure that history does not repeat itself with imprudent reverse mortgage loans made to seniors,” Swanson said during the press conference.  

Beyond the controversial 30-day rescission period, Minnesota’s proposal would make buyers of reverse mortgages responsible for the actions of the originator. The bill also includes a broad suitability requirement, which would require lenders to reasonably believe that reverse mortgages were suitable for borrowers. In addition to requiring independent counseling, the bill would limit the sales of financial products in conjunction with a reverse mortgage.

Senate bill
House bill