Reverse Mortgage Success

Sounds like a strange title but stay with me here and it will all make sense. Over
the past 25 years we have worked with and trained thousands of originators
around the country.
In fact we have trained hundreds of originators just on the topic of Reverse
Mortgages. So in this article we hope to share with you some tips on offering
Reverse Mortgages as well as some simple sales lessons … Some you may
already know but it can’t hurt to reinforce them. Ready?

HERE IS HOW MOST LOAN OFFICERS SELL THEIR SERVICES
Most originators go about selling their services by several different methods.
Most of which are just simply not effective.
1. Compete on rates and points. This is one you will never win.
2. Try to get Realtor business. You go in and tell the Realtors about all of
your wonderful programs. Then you proceed to tell them about how great
your service is. You then close them by telling them how low your rates
are and the over 20 programs that you have to offer. If that doesn’t work
you just start begging!
3. You go buy leads or advertise your products and prices etc.
Yeah, we know there are numerous other ways you go about getting deals but
we are limited on space here. You might get referrals. You might do direct mail
etc. etc.

BUT THERE IS ONE BIG MISTAKE YOU ARE MAKING! Hope you are not
reading this during breakfast lunch or dinner. If you are please put this down and
wait a few hours to read it. Why?
Because all of these methods have you vomiting benefits on your prospects. You
are simply telling them all of the wonderful things you do and why they should
be using you. Take a step back next time you are putting a marketing piece
together or speaking to a client. You don’t even know what their needs are and
yet your mouth is going a mile a minute telling them how wonderful you are!

THIS PROCESS WILL NEVER WORK IF YOU PLAN ON DOING REVERSE
MORTGAGES.
Reverse Mortgages are for seniors age 62 or older. This age range tends to be
more skeptical by nature. Not to mention the years of bad press we have gotten
as an industry. They won’t respond to hype or even the most creative sales
pitches.
Therefore you MUST come up with a different approach. The term “trusted
advisor” has become cliché due it’s over used but it is in fact the way you need to
approach this population.

SO WHAT DO YOU DO?
First, you need to do a lot more questioning and listening than you do talking.
Probably 2/3 listening and 1/3 talking. But there is an order. Find out what their
situation is. Find out how they got into this situation. Find out what their goals for
the future are. How their family fits into this. By the way, it is always best to have
the seniors family members (often the real decision makers) present for your
meetings. After all it’s their inheritance that is on the line (or so they think). Find
out what an acceptable or desired outcome would be. This is truly consultative
selling. Don’t judge, just listen.

Second, try if you can, to get referred to these clients by someone they trust.
Often these clients will seek advice from their attorney, financial planner, or
accountant. If you are meeting with them as a result of being referred you are
way ahead of the game. There is a real process to doing this and it has taken us
a while, but we have it down to a science. You can, too.

Third- Be a real expert not a pretend one. Become a student of the product.
Make it a point to know the history and evolution of the product. Stay up to date
on changes. Learn the ins and outs of issues affecting seniors. Run scenarios.
Speak with accountants, elder care attorneys, and financial planners so you can
learn the real issues and ways they recommend solving them.
In other words- be a real expert on your topic by educating yourself and staying
up to date. This is a common problem we see with originators offering Reverse
Mortgages. They have the ability to offer the program but have no real idea of the
ins and outs of the program since they only do a handful a year.

Lastly, ASK- SHUT UP- LISTEN This is the tested and proven formula you need
to understand when working with this population. Rambling on about what you
can do and lowering your prices is never going to work. Instead, remember you
are there to solve their problem. You bring value to the transaction and they

really want (and need) you to consult with them, present the best options, then
help get that problem solved. The reverse mortgage has helped so many seniors
over the years and it will continue to do so. Embrace this program and be the
solution so many are seeking.

************************************************************

Brian Sacks and Sue Haviland are co-founders of Reverse Mortgage Success
reversemortgagesucccess.com the premier Reverse Mortgage Training
and Marketing company that has helped hundreds of originators all across
the country who want to excel at serving seniors with the Reverse Mortgage
Program.
Together they have over 25 years of experience have collectively closed
over 5000 loans totaling over 1.5 Billion Dollars. IF you would like to receive
FREE TIPS AND STRATEGIES you can use to profit from originating Reverse
Mortgages please visit reversemortgagesuccess.com

We are so happy you are reading this article! Why? It means that you are still in our
industry and haven’t become a victim of the tumultuous changes of the past 3-4 years.

Years ago I heard a marketer utter these famous words. His name was Gary Halbert and
he asked the audience: “Which would you rather have, the best hamburger in town or a
hungry crowd?”

THE ANSWER IS OBVIOUS * I HOPE* BUT HOW DOES THAT APPLY TO YOU?

Let’s take a quick look at the mortgage landscape we find ourselves in.

1. Low rates but fewer buyers. Home sales have dropped and are not expected to get
much better in 2011.
2. Home values are still dropping in some areas but some areas are actually
stabilizing and a few are even rising a bit. The projection is that 2011will find
more people facing foreclosure than in 2010. Each year for the past 3 years these
foreclosure numbers have risen, and it is expected it will finally level off in mid
2012.
3. Lenders have not yet disposed of this enormous inventory but the expected result
will be that once they do there will be continued downward pressure on home
values.
4. Refinances! WOW!!!! Who would have ever thought we’d have fixed rates in the
low 4’s. It has certainly increased production. But there are still problems. Number
one this can’t last forever. Number 2 there is a huge portion of the population who
would love to refi but no longer have the income/credit standing/or home values to
do so.

SO WHAT’S A MOTIVATED ORIGINATOR TO DO?
You could just leave the business and tell everyone how horrible it is but we know you
won’t do that because you are still here and hopefully looking to continue doing well.
These past years have truly been years of reinvention for all of us and the industry as
a whole. So let’s take a quick minute and think about who’s left that really needs our
services.

WHO IS OUR HUNGRY CROWD?
Our population continues to age. It has been calculated that each and every day
approximately 7500 people turn age 65. Many of these folks are eligible for a Reverse
Mortgage. There are now over 80 MILLION people in the United States who are 62
years of age or older. Pretty staggering numbers huh? But it doesn’t mean anything if
you don’t realize what makes them a HUNGRY CROWD.

NO GROUP HAS BEEN AFFECTED BY THIS ECONOMY MORE THAN SENIORS.

Seniors are now facing challenges many could not have imagined. So let’s take a look at
these challenges and then we’ll speak a little about some possible solutions. OK?

For the past 2 years there has been ZERO increase in the Social Security benefits.
The Government feels that there has been little inflation so no need to give the
usual cost of living (COLA) allowances.
- Health Care Premiums and prescriptions costs are on the rise.
- The volatile stock market has eroded many years of their savings which they
planned on using for retirement.
- Their “un-employed” adult children have been forced to move back in or have
needed their financial assistance. In many cases seniors are taking out mortgage
to help these adult children.
- They had planned to retire comfortably and get a modest 5-10% return on their
investments. That may have been realistic when they planned it but now the banks
and institutions are paying LESS THAN 1 %!
- They have unexpected medical expenses forcing them to tap into their equity and
now have a mortgage payment they didn’t budget for.
There are numerous other issues they face; we just wanted to touch on a few here. In
fact it almost feels as if their income and retirement years are under constant assault. Not
quite the retirement they had in mind.

-

BUT IT GETS WORSE!
They try to go back into the workforce to supplement their income. But they find
themselves in the midst of an economic downturn with unemployment near 10%. Why
should an employer hire them when they can get a younger person at a lower wage?

We recently came across an article that stated only 38% of seniors have enough to live
off of during their retirement. Scary!

THE SOLUTION THAT HELPS SOLVE THEIR PROBLEMS

Ok. So now we know who the “hungry crowd” is and also why they are hungry. The
Reverse Mortgage (or HECM: Home Equity Conversion Mortgage) solves many of these
issues. Some highlights of the program are:
- Youngest borrower must be 62 years of age.
- There is no minimum credit score
- There is no income requirement
- These loans can close with 30-45 days contrary to common misconceptions.
- Borrowers retain ownership of their home until the borrowers move out or sell the
property.
- BIG ONE!!! If there is a deficit *they owe more than value* the borrowers or heirs
are not responsible for the deficit at the time the home is sold.
-
HOWEVER – IF THERE IS EQUITY LEFT AT THE END OF THE LOAN THE
BORROWERS OR THEIR HEIRS WILL RECEIVE THOSE FUNDS.

-

Programs offer flexibility. Borrowers can choose a lump sum, monthly payments, or
a credit line, or any combination of the three.
Recent program enhancements have lowered the borrowers closing costs.

-

We hope from this short article you see the benefits of originating Reverse Mortgages.
Not only are you helping seniors with solutions to their issues but you are also now
offering a program that is in demand.

Many in our industry have projected originations of this program to increase by 30% in
2011. If you want 2011 to be your best year ever than you MUST consider ramping up
your knowledge of the program and add it to your arsenal of programs you originate.

Brian Sacks and Sue Haviland are co-founders of Reverse Mortgage Success
reversemortgagesucccess.com the premier Reverse Mortgage Training and
Marketing company that has helped hundreds of originators all across the country who
want to excel at serving seniors with the Reverse Mortgage Program.

Together they have over 25 years of experience have collectively closed over 5000
loans totaling over 1.5 Billion Dollars.
IF you would like to receive FREE TIPS AND STRATEGIES you can use to profit from
originating Reverse Mortgages please visit reversemortgagesuccess.com

WHICH WOULD YOU RATHER HAVE?
We know that may sound like a strange title but please stay with us and you will learn a great marketing
lesson. We are always asked why we choose the Reverse Mortgage Program as our specialty.
Many years ago we learned a valuable lesson which we will share with you in this article.

BUT FIRST LET ME ASK YOU AN IMPORTANT QUESTION.
Close your eyes for a second and pretend that you are about to open a restaurant in your town.
Specifically a burger joint. Now let me ask you a question. Which would you rather have – (A), The Best
Burger in Town, or, (B), A Starving Crowd.
We hope your answer was a starving crowd. Why? Simply because every burger joint in your town claims
to have the best burger don’t they?

It’s the same in our business. Yes, you can do FHA loans, refi’s, VA loans, purchases. Yes — I know you
give great service right? Well you should!!! But don’t you hate those clients who shop you and make you
feel like a commodity? We call this the “Head of Lettuce Syndrome” meaning all the lettuce is the same
so why not just look for the best price.

HOW DOES ALL OF THIS APPLY TO OUR INDUSTRY?

Let’s take a step back and think about who a starving crowd might be. A group that is facing serious
issues and needs a solution. The group we came up with is seniors and boomers (there is a big
difference between them). Here are some of the issues they are facing.

1. Their medical and prescription costs are going up.
2. Their daily living expenses are going up.
3. For the past 2 years they have NOT received a cost of living increase via Social Security benefits.
4. Their portfolios for those who even had one were decimated in the market crashes.
5. The other funds they had set aside are earning less than 1% and they can’t live on that.
6. In many cases their children are moving back in. Something they had certainly not budgeted for!
7. They can’t find a job given the current economic climate.
8. Their homes need repairs or need to be equipped for their physical challenges.

We could go on and on but you get the point. THEY ARE A STARVING CROWD.

They need our help and they need it now. The solution for many is the Reverse Mortgage. This group is
growing by 7500 people PER DAY! Yes — That’s per day.

There are a few tips you need to understand if you want to work with this starving group. You owe it to
them and to yourself to be up to date on the Reverse Mortgage Programs including the new HECM Saver
meant to lower closing costs. But that is just the start. You also need to understand their core values and
their motivations. What makes them tick and what fears and challenges they have. Some have gone
through the depression and World Wars so they have their own views on money and asset allocation.
Lastly you need to understand the proper legal and financial instruments and how it affects them. Now
don’t misunderstand. You should never ever give legal or accounting advice but you MUST know what
you are talking about! These folks will know immediately if you don’t.

Now that you know who the best “starving crowd” is for our industry we encourage you to go out and be
their problem solver. You will be doing a good deed to a population who needs you and you will no longer
have to feel like a “head of lettuce”. Have you lost a reverse mortgage loan to another originator and
wondered why? Set yourself apart. We’re here to help you.

Sue Haviland and Brian Sacks are the founders of reversemortgagesuccess.com . They have been

in the mortgage industry for over 25 years each. Unlike many “pretend experts” in our industry Sue and
Brian originate Reverse Mortgages everyday. For FREE REVERSE MORTGAGE MARKETING TIPS and
REVERSE MORTGAGE UPDATES please visit reversemortgagesuccess.com