REVERSE MORTGAGE MARKETING MINUTE- WAS THIS A FAILURE?
March 30, 2011 
24 Comments
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I still do not know how the new LO comp laws will soecifically affect us. I haven’t found any RM marketing system that brings any real return on investment. I am discouraged about the business.
Michael
You are right to be discouraged… You wouldn’t be human if you weren’t.
BUT
Many of us are at a crossroads… and we quickly need to decide to go right or left..
No right or wrong– but a decision HAS to be made.
From where I sit it means the following…
-THERE WILL BE LESS OF US WHICH IS GOOD NEWS–LESS COMPETITION!
-WHAT WORKED IN THE PAST WILL NOT WORK NOW IN TERMS OF MARKETING SINCE THE RETURN ON INVESTMENT WILL NOW NEED TO BE CLOSELY PAID ATTENTION TO!!!
-BRANDING WILL BE OUT !!!
In the end I think the strong will thrive but I hate to see hard working honest people getting hurt !
Brian
PS- Sue and I use many low cost – no cost methods that are very effective but few know about ! We will be sharing many of them in the new resource we are about to unveil in the next two weeks
Now we know that the judged denied the TRO. Basically the FRB believes Congress has given them the authority to do anything they want. If you haven’t been dialoging with your political rep’s, now is the time to start. If you haven’t been sharing this story with everyone else associated with the real estate industry, now’s the time to start. If the FRB has the power to control the income and fate of one industry, what’s to stop them from controlling more. We allowed ourselves to receive labels, such as unfair, abusive, deceptive. We should have been defending that for a long time.
I plan on staying in the industry because I know of all the other ways I DON’T want to earn a living. I know I have to be smarter marketer and do more of it. I agree with Brian’s words, this industry isn’t for everyone. And there’s only one answer to that – stay in or get out. And think about all of the jobs/employment that you don’t want to be a part of.
I rarely have time to stop and listen or read your presentation(s). This morning I did…..the playing field seems to be very level now. All of the shiftng and twists in the market place have not diminished the need for this program or the precious benefits it still holds to those who can really use it. What has changed is our mentality. It seems like everyone is paralized. We market via the web in many states. It’s amazing what we hear…..regarding other lenders, false promises and little regard for taking the time to really discuss a person’s present and future needs. You can tell when the conversation immediately turns to costs.
My biggest challenge today is not marketing and it’s not how competitve we are in the market place. It is simply to rally the troups with what I believe to be an amazing future and one of volume. The days of large returns on few loans are gone……they have been for a while. More loans presented and sold correctly now takes stage. What is the big deal??? Am I the only one who feels this way? Life will go on whether we choose to cry over how things used to be or create something wonderful about how things are going to be. thak you for the video and have a great day. Mike
Thanks for your replies….
Brian
Marketing/Leads is where it’s at.
Cost Effective Quality Leads is where it’s at.
For me, the Internet with a Good Converting Site and Fine-Tuned PPC Campaign is where it’s at…Not Sphere of Influence/Referrals.
As a forward broker, I became interested in RM’s due to the help I could provide and the YSP was nice also.
Now that so many lenders are leaving the RM industry, I am seeing an increase in RM interest, in spite of the fact that HUD counselors are not very complimentary of RM’s.
Even though RM compensation is greatly reduced, these are still very easy to do. Also, I think for non-fixed RM’s we can still make origination fees as well as YSP after April 1st. Please correct me if I’m wrong!!!
Thanks for your tips and knowledge sharing!
Tom
I agree that this business is not for everyone. But it is time to put the focus back on how to benefit the client and less on what we make on a deal. If we treat our clients the way we should, the deals will be there. Marketing will change, but it is what it is and we will have to make the best of it.
Well said Brian. We must learn to continually adapt to change or get out of the business. Most of my past marketing methods don’t work as well as they used to and now with the LO Compensation changes I’m looking for other, less expensive methods of driving business. Somebody will figure it out I’m sure. I haven’t given up yet!!!
Brian, one thing that you told me so many times is that the cream will rise to the top every time.
I can’t thank you enough for all of our wisdom and encouragement!
Those LOs that understand the concept of “write small checks to cash big ones” will continue to enjoy banner years.
Those that don’t, well, “I’ll take fries with that please….”
THANKS FOR YOUR COMMENTS – THIS IS EXACTLY THE TYPE OF CONVERSATION THAT IS NEEDED AND HEALTHY !
I AM THRILLED AT ALL OF THE “ACTION TAKERS” HERE… ! GUESS THAT’S WHY WE ARE STILL HERE.
Yes- you must continue to market but marketing is not buying expensive ads and HOPING!
Those of you who know me know that I always say “HOPE IS NOT A STRATEGY”
In fact to go even deeper with this — it’s fresh on my mind since Sue and I now have our new resource in editing and completion
IT’s all about who is chasing who — burn that into your brains! It’s critical to your success…
Your job- and the techniques we share- are all about positioning yourself so people are chasing you !!!
No expensive ads!
No expensive marketing guess work!
I am not saying its easy and I am not saying anyone can pull this off — you need the right mindset but Sue and I do this and it works !!!!! and we of course are thrilled to share it
BRIAN
PS- let’s keep the conversation going here!
These comments are all vaild and I agree with Brian that this is a discussion we need to have. Sticking our heads in the sand will not do us any good. I for one hope people will decide to hang in there because our seniors NEED us. I just did a presentation to a group of financial planners this morning(it was set up by one planner who invited her colleagues) -they were all interested in learning about the reverse. They “get it”. This presentation has already resulted in 2 more invitations to speak and I know the loans will follow. Leave your comments and questions, keep the conversation GOING!
Carl, you are a very smart man and I respect you very much. Perhaps those with the heart who truly desire getting kicked in stomach, punched in the face and stabbed in the chest will stay around to maybe rise to the top.
I would not be so quick to insinuate that those that don’t stay in the industry will be stuck working in fast food or other dead end jobs. Unfortunately this economy has really devastated a lot of people. A lot of us really have talent. Some more then others.
It is a fact that the bankers are just as guilty in this mortgage melt down then us brokers, if not more! The simple truth is that the bankers run this world and bigger banks are putting the “squeeze” on to kick brokers out of the industry. Someone should be investigating their practices.
Why isn’t anyone trying to put caps on used car salesman, or better yet government salaries and benefits. Do you find it unusual that the average government worker’s salary is about $90K per year?
What percent of mortgage brokers are really making that now? Top that off, these same people working for the government get paid for being inefficient and get guaranteed pension after 20 years.
So I pose this question to all of you, “Who are the real criminals?”
I guarantee its not the guy trying to make an extra quarter on a loan or the guy trying to optimize his clients finances to put them in the best loan that makes the most sense for them.
So I challenge ALL of my fellow mortgage brokers to fight back and rage against our government before they wipe out what’s left of our country.
from Brian Sacks
Brian– I wanted to comment on your recent post..
To be fair I have a very strong opinion here it is…
First this mess was really caused by the rating companies
Moodys
Standard and Poors
Fitch
The heads of those companies who rated the junk as A grade paper should be taken out of their offices and HUNG from the flag pole on wall street
Investment bankers and brokers got the green light to sell these garbage loans and we of course went out and sold them
TO be fair- There was alot of get rich quick folks in our industry but they are now gone– Like a mortgage enema ( sorry for the graphics)
But we are left and the past is the past!
I personally don’t blame anyone for leaving but I do think those that stay are finally going to be doing well again
Just have to approach this business differently- approach your marketing differently and approach our lead gen differently
Thanks to all of you for your feedback so far!!!
Brian Sacks
Do you think an LO can do both regular and reverse mortgages? It seems like I have some people asking, but I don’t know if you need to just specialize in that.
I do think it is unfair the way the L.O. rules have been written. I’ve resolved in my mind that this business is not what I do but it is a huge part of who i am. Complaining about it will not bring loans through the door. The reality is that we all have to do more marketing as well as sharpen our tools in the tool box, meaning our ability to offer the benefits of what we do. Like everyone else I was extremely disappointed in the ruling but at the end of the day we have to get up tomorrow and raise our energy to sell the benefits of reverse mortgages.
Vincent
I could not have said it better !!!
You are exactly right !
Brian Sacks
STAY GRANTED!!! 3/31/11 the US Court of Appeals for the District of Columbia ordered a stay on the implementation of Federal Reserve TIL LO compensation rule changes, originally slated to go into effect Today, April 1, 2011.
A date of appeal is set for Tuesday, 4.5.11. See Link: http://www.namb.org
Brian – I’m reminded from a quote on my wall – “Last year’s strategy won’t win us this year’s championship” – Pat Riley, 5 time NBA Champions. The same can be said in the mortgage industry. So very sorry to see so many hard working people leave the industry, continuing to be destroyed by Barnie Frank, Chris Dodd and our current government structure – no ties to either party lines. However, if this is your career, then you need to make it your career and market yourself accordingly that will consistently differentiate you from all the others. If you market integrity, education, character, licensing and NOT pricing, you will be well-respected and the dollars will flow. Do you think lawyers, doctors, CPAs, financial planners sacrifice the dollars they earn? We perform a very important job for the consumer for more than 86% of homeowners in the U.S. have their house as their biggest asset. Unfortunately, it is couped with their biggest debt obligation – the mortgage or lack of with a RM. The homeowner will always need a mortgage specialist. Keep the faith and confidence.
Rod
That IS exactly what I have been saying for close to 10 years..
What’s even stranger is that the new law is pushing us to choose a niche or speciality..
I have taught this concept to thousands of originators since 2001
PICK A NICHE-BECOME THE EXPERT- LET EVERYONE KNOW ABOUT YOUR EXPERTISE !!!!
Brian Sacks
Brian et al,
There are some excellent comments here and one of the times I think ALL are on point and correct. You & I share a common bond of 26yrs mortgage lending (I started 06/85) and have seen some banner years and some lean years, but never have I not thought of mortgage lending as a career.
Kudo’s to you & Sue for a great website and some outstanding tips, and please keep up the good work. I subscribe to 8-10 mortgage websites and yours is one I fathfully read and look forward to.
I agree “the strong shall survive” and that we all need to “work smart” – please continue to help us do just that!
“MM”
We truly will be the ones to pull Excalibur from the stone! Complaints only put us in a thicker quagmire, let us join together and let the world know that we are experts in our fields, we do not run away, even when the government tries to disembowel our industry.
Although I would prefer that the government not get involved in making changes to the mortgage business, I can’t control that.
However, I can select to choose what I focus on and listening to your tips and others like Carl makes me really optimistic about what I can achieve.
I am going to use Video Marketing this year and I am looking forward to this week’s Video Marketing Round-up in Los Angeles to see how I can customize it for my Reverse Mortgage clients, customers and partners.
–Carlos
Carlos
Thanks for your feedback
In fact I have just written a series of articles on the topic of message- market and media
While as you can see I am a BIG Believer in Video and a big fan of Carl’s — one of my most successful members from my LoanOfficerSuccess days…
BUT
You need to clearly think thru each media—
Video is a great tool from care providers and referal partners but might NOT be the right media for the actual senior ( 70 plus)
All The Best
Brian Sacks