Now that the dust has settled, we can prepare
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Now is the time for us to examine several facets of our reverse mortgage business from product knowledge, marketing, sales tracking and emerging markets. Product knowledge is the foundation upon which we build our communication, persuasion and public image. I recall just two short years ago overhearing several originators incorrectly describing how the line of credit growth worked. I was an unsellting revelation. Our industry’s collective image depends upon an educated and informed sales force who know the nuances of the HECM product. 50% rule? 60% distribution limits, financial assessment. Before we approach prospective borrowers it behooves us to know every facet of the new HECM. The product is not as simple as one would be led to believe.
Due to the lower principal limits and first year distribution limits we must reexamine our marketing strategy. Have we adjusted our loan to value ratio with our lead vendors? Are we marketing to senior homeowners who are not strictly house rich and cash poor? Successful marketing requires a multi-pronged approach. In other words, several sources of new leads: internet, referrals from borrowers, professional referrals and public engagements to name a few. Plans built on one medium alone are especially vulnerable to failure if that strategy wanes in effectiveness or crashes.