Reverse Fortunes Blog

The old saying goes something like this…. “insanity is doing the same thing over and over again, expecting a different result”. This phrase came to mind when speaking to several originators across the country struggling to survive in the reverse mortgage business.  I’ve found there are two types of insanity in our field.

Counterproductive Insanity:

This insanity is perfectly summarized by our earlier definition. Many originators suffering from this condition find themselves….

• Dreamy. Looking for the next great lead that will generate loans. Yes, they’ve purchased leads that didn’t work, but now need to find that elusive “magic lead” that will really work this time. They usually are asking “do you sell leads”? versus finding ways to create leads.
• Loners. Isolated originators often struggle with motivation and lack of creativity. This can be especially challenging for those working from home.
• Unplugged. Most of those struggling the worst are not plugging into the wealth of free coaching, mentoring and marketing ideas available to reverse mortgage originators today. Somehow they already have all they need to succeed.

Productive Insanity:

This is a great condition to suffer from and hopefully more will catch it. These originators have the following symptoms…

• Creative. Rather that chasing the same broken marketing that yielded so few leads, the productively insane find new and creative ways to build their business. Their rule is there are no rules! They are scouring the earth for new ideas to market reverse mortgages to more seniors and will take input from just about anybody!
• Networked. These originators seem to know just about everybody. If they’re an office environment they love to collaborate and work as a team. If they work from home or by themselves they seek out ways to partner with those like themselves who can provide mutual feedback, encouragement and training. 
• Wired. They’re plugged into to anything they can find…news feeds, podcasts, RSS feed, magazines, marketing digests…anything that will help them grow. They also have worked to build a network of strategic alliance referral partners in their community.

Oh, the joys of insanity! Hopefully we find ourselves productively insane and growing. As the Apple computer ad put it so well “Think Different”. Who cares what anyone else thinks?

Now things are getting exiting. You are growing and going! Learn how and when to expand a successful reverse mortgage company. Know how to hire and train people to do the job correctly the first time through, and then retain those people.

As your team develops, you will learn how to:

• Set and achieve meaningful goals
• Recruit and retain the right people
• Train and manage for success
• Develop a team culture

Show topics:

• Where’s my margin?! Investors call for increased HECM margin rates
• Going, going, gone. Jumbos are shrinking…
• What’s your loan pipleline worth? Do you know?
• Making big. How being a small fish in an empty bond is great!

It’s Friday, May 2nd 2008.

I’m Shannon Hicks, and this news from Reverse Fortunes Weekly a podcast for reverse mortgage originators, brought to you by yours truly and subscribers of ReverseFortunes.com. More information is available at reversefortunes.com.

The days of the HECM 150 are gone or fading fast. The recent credit crunch and skittish Wall Street investors are having a direct effect on the reverse mortgage industry. Investors who securitize HECM loans were prompted by Fannie Mae’s decision to alter the value on the HECM 150 CMT, losing 50 basis points in value.

Seeking to prepare or react to these new market conditions, several lenders have chosen to move immediately to the HECM 175 which is priced at par. Several lenders such have been offering the HECM 175 and 200 for some time as part of their loan portfolios.

So what does this mean to you? Since the HECM 150 is priced below par you would take a hit in the percentage of your loan origination fee that is paid to you…your commission. This only applies if your bank allows you to offer the 150.

What does it mean for your client. A higher margin for the life of the loan goes without saying. Money? The principal limit is reduced by a paltry couple hundred dollars in most cases. Keep in mind this should not be an issue making you vulnerable to your competition. Remember, you are selling the benefits of the reverse mortgage, not the margin and your competition is in the same boat, or if not, will be jumping in soon.

Reverse Mortgage University is the foundation on which I have built my succesful Reverse Mortgage company. The foundational building blocks on which I have built my buisness are universal and can work for anyone who wants to be a succesful Reverse Mortgage Loan Originator. We have developed systems which are time tested and proven. The different modules of Reverse Mortgage University include Reverse Mortgage Knowledge, Reverse Mortgage Skill Sets, Reverse Mortgage Marketing, Reverse Mortgage Operational Systems, and Reverse Mortgage Leadership. This is a comprehensive and ever evolving platform. We at reversefortunes.com hope we can be part of your growth and expansion in this ever growing, and exciting Reverse Mortgage Market.

Best regards,

Eric A. Hiatt

Increase your reverse mortgage fundings when you learn how to relate and communicate to seniors, build trust, and successfully counter their common objections with your simple solutions. Ultimately, you will learn how to create your unique selling proposals.

You will build on a solid foundation when you learn how to determine your unique selling proposition. On your way to developing your unique selling proposition, you will master these techniques:

• Educating and presenting over the phone
• Educating and presenting in the client’s home
• Building trust
• Relating to seniors
• Countering common objections

We have found through years of experience just knowing the Reverse Mortgage Loan is a great fit for someone is not enough. Educating the potential client about the Reverse Mortgage loan is also not always enough. We as Reverse Mortgage Loan Originators need to actually be able to relate to the potential client. We need to understand where they are at and where they want to be. We need to understand what a fixed income really feels like and how this effects there retirement. These foundational principles are what we have used for years, and we know they will serve you well.

Eric A. Hiatt

Learn to execute successful marketing campaigns, including seminars, direct mail, television radio advertising, and press releases. Build lasting strategic alliances. Manage your database to create a lifetime of income. Close more reverse mortgage loans in less time.

Marketing to seniors successfully is a unique proposition. Time tested marketing strategies will save you time and money:

1. Seminars that work
2. Press realeases that get published
3. Strategic alliances
4. Database management
5. Direct mail success

We have put a phenominal amount of resources into different types of reverse mortgage marketing strategies, some worked some didn’t. Use our experience to increase your income and build your reverse mortgage career on a solid foundation.

We have a very succesful team of reverse mortgage originators who will share there reverse mortgage marketing strategies with you. These are some of the top producing reverse mortgage originators in the U.S. Please join us, we are very excited to see you  succeed in your reverse mortgage buisness.

I look forward to working with you,

Eric A. Hiatt

In order to become a succeful reverse mortgage loan originator you must start with the basics.

Master the basic function of the Reverse Mortgage loan origination process, including filling out the loan application; Understanding basic retirement planning; social security income; senior’s typical needs and goals; and what questions to ask and when to ask them.

In order to be a successful Reverse Mortgage originator you must take the time to master the basics of the reverse mortgage loan origination process

This includes industry standards in:

1. Reverse Mortgage Training
2. Loan Documents
3. Retirement planning
4. Seniors needs

I cant tell how many times I have seen what may have been a well intentioned reverse mortgage loan originator explain the reverse mortgage loan incorrectly to their potential clients.This is obviousley the first building block to your foundation for success. At reversefortunes.com we will use our years of experience in the reverse mortgage industry to teach you to be the teacher. We have developed time tested systems for the training of reverse mortgage loan originators. Ultimately ensuring you will originate more loans and keep more satisfied clients than ever before. As well we will share with you the tools we use to train strategic alliances so you can build yourself up as the reverse mortgage expert in your area.

I will see you there,

Eric A. Hiatt