Reduced profits squeeze marketing dollars
The fact that our industry generated over 20,000 FHA case numbers in September proves our ability to engage homeowners and influence them to take action. Requests for HECM counseling sessions jumped by 62% in the months leading up to October 2nd reforms. However, the question many are grappling with is if strong consumer demand will return once the HECMs continual overhauls cease and we achieve some sense of equilibrium.
With reverse mortgage originators making less per funded loan some are curtailing their investment in marketing and lead purchases- both which contribute to fewer loans. The result is a self-fulfilling prophecy. Fewer purchased leads equal fewer prospects and funded loans and therefore fewer marketing dollars.
While the present profitability per loan has declined considerably, there are a few noteworthy facts we should consider. 10 years ago HECM…