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When the well runs dry


Tapping a dry well?

According to the latest FHA Single Family Production Report, FHA case number assignments for new HECM applications fell in November and December.

In their latest newsletter, Reverse Market Insight aptly titled their February report ‘Dry Well’. 

For farmers or ranchers, the first signs of a nearly-depleted well are reduced water pressure, sputtering or inconsistent water flow, or sediment. In such situations, well-users may deepen the well, find another aquifer, or check for blockages. 

For reverse mortgage pros, several strategies may be employed to find a new source of applicants and potentially get the leads flowing again.

Know your marketing niche:

Where is it that you shine the brightest? Is it networking with local financial professionals, banks, or real estate agents? Look back to where you’ve been most effective and if those efforts have been set aside, make a plan to reengage.

Focus on referrals:

Are you consistently seeking and receiving referrals from your previous borrowers? One way to spur a referral is to ask for a review of their experience. Another key engagement that’s often overlooked is annual check-ins. Even better, call your borrowers who closed two months ago and go over their first loan statement, how to request credit line withdrawals, or answer any questions they may have.

Remember, superior service is fertile soil for referrals.

Use video email campaigns:

Did you know you can make a short custom video for a potential borrower and embed it in your email? Doing so vastly increases the odds they’ll click on the video and hear what you have to say. Loom or Bomb Bomb are great platforms for video marketing.

Show, don’t tell:

If you’re sending an email with a 48-page reverse mortgage loan proposal many of your prospective borrowers are prone to tune out or be overwhelmed. Instead, consider doing a short screencast using Loom to explain each page. 

Host virtual training sessions:

People want to help those who provide value. Consider hosting regular online sessions covering how reverse mortgages work or dispelling the common myths about the loan. Send out an email invitation with yes…a short video link so they’ll open your message and RSVP.

Work your database:

To put it simply, a reverse mortgage professional without a Customer Relationship Manager (CRM) is like a ship without a sail. 

Revisit your records in your CRM (such as Sales Engine CRM), and filter fields for the most likely prospects. Schedule an email drip campaign, or reminders to call them periodically. 

In conclusion:

Try some of these strategies to quench your thirst for new leads and closed loans. Find out which works best for you or tweak the methodology to suit your sales style.

If you’ve found some success in drumming up new business please share your ideas in the comment section below.



Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

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1 Comment

  1. Talking about a dry well , the highest HECM endorsements are expected to be for the first six months (ending in 10 day) of this fiscal year is less than 13,500. SIX months.
    That is on average less than 2,300 HECM endorsements per month. Last fiscal year the average per month was over 2,700 HECM endorsements.
    So why are originators telling us through industry rag sheets that things are noticeably better this year? Too many times the ultra optimistic HECM originators have no idea what is really going on in the rest of HECM world.
    Can the industry reach 33,000 HECM endorsements before the twelve months ending September 30, 2024? You decide but if you are an optimist with a sense of what is realistic, the HECM Case Number Assignments reported for December 2023 and January 2024 (the latest HUD has reported) will give you little comfort, especially combined with the low predictions for HECM Case Number Assignments for February and March 2024. That means HECM Case Number Assignments for April and May 2024 (based on a 4 month lag rule, going from Case Number Assignment to endorsement) would have to exceed 16,000, good luck with that feat.

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