the reverse review december 2008 january 2009

8/14/2019 The Reverse Review December 2008 January 2009

http://slidepdf.com/reader/full/the-reverse-review-december-2008-january-2009 1/48



Dec 08 / Jan 09

editors’ not

Asyouknow,it’s

beenapre:ywildyear.Whew!Wehave

hadourshareofchallengesin2008withthe

greatestfinancialcrisisinourna1on’shistory

andanewPresidentabouttotakeonHUGE

responsibili1es.Whilewetrytoremaincalminaposi1veway,thereisHOPEfor2009,andit’s

rightaroundthecorner.

Allthingsconsidered,wearefortunatetobein

thereversemortgageindustry.Formostofus,

businesshasbeenstableandgrowing.Itmay

nothavegrownasan1cipated,butatleastwe

haven’tseensignificantdeclinesinvolume.We

mustlookbackat2008andappreciatewhat

wehave.

Thankyoutoalltheauthorswhohave

sharedtheirthoughtsandexperiences

withouraudience.Ithasbeennine

monthsofgrowinginthisin1mate,

bou1quespaceofreversemortgages

andwecanonlyimaginewhat2009

willbringforcontent.Weappreciate

eachandeveryone’ssupportinhelping

uscommunicateyourmessagesthroughthispublica1on.

Attheendofthisrollercoasteryear,

ourmessageissimpleThebestholiday

gi`wecanimagineisacontribu1on

tothelessfortunate,regardlessofthe

organiza1onyouchoosetosupport,

givethoughullyandgemannerously.

FromallofusatTheReverseReview ,

wewishyouahappyandprosperous

2009.

EricaEnglish AmanMakkar

Co‐Editor Co‐Editor



6 reversereview.com

CONTENTS

ESSENTIALS

8 TheBirthofaNew

IndustryMichaelBanner

5 NoteFromtheEditor 7 AsktheUnderwriter 2 IndustrySnapshot

45 Directory

4 HowReverse

MortgagesCanBoost

Obama’sCallto

ServiceAtareE.Agbamu,CRMS

34 YearfortheRecord

BooksWeinerBrodskySidm

Kider,PC

24 LessonsLearnedFrom

2008

Bre:Varner

40 AGuidetoFollowing

UpValerieVanBooven

28 TheReverseMortga

Marke1ngPlanTomEmmerson

6 MovingForwardin

Reverse2009...

AvoidtheFollowing

ErrorsSamCollins

9 TimeManagement

andSalesProduc1vityMonteRose



Dec 08 / Jan 09

Manyofustrytochangeourliveswithhugecorrec1veinten1onstoundertakeatthebeginningoftheNewYear.Alas,

onechillyJanuarynightwefindourselvessippingonadrink,

withlitcigare:einhandhavingjustcompletedahighcalorie,

highfat,sinfullyindulgingmealwhichweresolvetoourselves

resultedfromtoomuchpressuretogocoldturkeyonallofthe

goodstuffinlifeinashortmomentof1me!!Nowillpower.

For2009,nowthatyouhaveprobablybrokenmostofyoursole

searchedthoughtsfrom2008,whynotreinventyourresolu1on

listandtakeafocusedapproachonthereversemortgage

ac1vityyoudosowell.

Weforgiveyouforbreakingyourresolu1onssoquickly,andknowyouwilltryagainnextyear,but,youarenotoffthehook.

Taketheresolu1onpledgebelowasyourpunishmentforthat

pieceofcheesecakeyoujustatea`ermidnightonDecember

3,2008.

MyhopefortheNewYearisthatweareasmarter,more

efficient,morefocusedproviderofreversemortgageproducts

andresourcesfortheseniorin2009.Iwouldlikeyouto

considerreaffirmingyourinternalwill,bystanding,putdown

yourfork,raisethisar1cleeye‐levelwithonehand,andraise

theotherhandpastthetablewhilereadingaloud

Iresolve,tobethebestreversemortgageloanoriginatorIcanbe...

...toplacetheneedsoftheseniorasmyborrowerabovemy

own,toassistthemineverywayIcanwithissuesofremaining

intheirhomeanda:ainingfinancialstability...

...tooriginatebe:er,tobemoreaccurateandcompleteinwhat

Iputintotheirloanapplica1onpackage…..

...tofillinalloftheboxesonthe009...

...toasktherightques1ons,toknowwhatmyborrowertruly

wantsbyprovidingmyborrowerwithchoicesandsolu1onsthat

meettheirneeds...

...toreadtheImportantTermsdocumentandbeabletoexplain

LIBOR,CMTandtheFixedRate...

...toaskdetailques1onsastothecreditprofileoftheborrower

somyprocessorortheunderwriterwon’tbesurprised...

...toaskforcompletecopiesoftrusts,deathcer1ficates,POA’s,

andotherinforma1onthatwillexpeditetheapprovaland

closingofmyborrower’sfile...

...nottoundertakeamanufacturedhomeasmyfirstloansubmission,toknowabouttags,founda1oninspec1onsand

issuesrelatedtothiscollateralformwhichifle`una:endedt

willresultinfrustra1onforalloftheloanpar1cipants...

...torememberthatsizema:erswhenitcomestophotocopi

ofiden1fica1ondocumenta1onfortheborrowerincluding

picturedid’s,driverslicenses,socialsecuritycards,andothe

proofofiden1tydocuments...

...toaskques1onsaboutmyborrower’sprimaryresidencew

regardtotheroof,theelectrical,thewell,thesep1csystem,

theHVACsystems,thestructureandneededrepairsbeforet

appraisalisordered...

...tobothtakegoodnotesandpassonhelpfulinforma1on

notestomyprocessorandunderwriter...

...toassist,tospeakwithmyborrowersandkeepthemup

todatewiththestatusoftheirfileandquicklyobtainany

addi1onalneededinforma1on...

...tobetolerantandpleasantwhenovercomingobjec1ons

bymyprocessorandunderwriterthattheinforma1onIhave

providedisnotsufficienttoansweraques1onorsa1sfya

condi1on...

...toproperlyverifyfundstocloseorsourceofdownpaymeonallfiles...

...tocon1nuetoeducatemyself,toseekavailabletrainingto

enhancemyorigina1on,processingorunderwri1ngskills...

...toreviewmyapplica1onpackagebeforeIturnitin,tomak

suresignaturesarecompleteandtheinforma1oncontained

thereinisfactualandabletobeverified...

...toassistwithma:ersof1tlebyaskingforneededreleases,

evidenceoflienpaymentsandmortgagerelatedissues...

...tobeawareofdecliningvaluesinmymarketplaceand

understandmyappraiserisusingthebestinforma1onavailable...

...tomakesureIamawareofinsuranceissuesrelatedtofloo

andhazardcoverageandthemortgageeclause...

Andlastly,IresolvetoresolvethatIshallkeepmylistof

reversemortgageresolu1onshandywhenIfearamomento

weakness…..

Wishingyouahealthyandprosperousnewyear…..

ask the underwriteRalphRosy



Intoday’shighlyvolatilefinancialenvironmenttheReverseMortgagecertainlyseemstoboldlygowherenomortgagehasgonebefore…

Yetthisstaggeringproduct,thatofferssomuchrelieftothesegmentofoursocietythatdeservesitthemost,ourseniors,seemstostillbesowidelymisunderstood.

Thisraisesaveryinterestingquestion.Is theconventionalmortgageindustrythebestvehicletobringthisamazingproducttotheseniorsofourcountry?

Eventoday,somuchremainsunknownaboutthestrengthofthisfinancialtool.Now,thelightofknowledgeisbeginningtoilluminateitsmanyoptions,almostendlessuses,andmostimportantly,thatifusedcorrectly,itcanprotecttheclient’scurrentassets,andinmanycases,createmore wealth.Thisknowledgehasspreadtothefinancialplanningindustry,givingseniors theabilitytopurchasebadlyneededlong- termcareinsurance,purchaselifeinsurancepotentiallytransformingtheirchildren’sinheritanceintoalegacyandevengivingsomeofthatinheritancerightnowwhile theyarealiveandabletoenjoythebenefits withtheirfamilies.Trustedadvisorssuchas

certifiedfinancialplannerscanaccomplishofthis,andsomuchmore.

Already,manytrustedadvisors,throughou thefinancialindustry,haverealizedthepowerofreversemortgagesandareturnin tothemastheanswerfortheirseniorclienInadditiontocertifiedfinancialplanners,longtermcareinsuranceagents,eldercareandestateattorneysandmanymoreareincreasinglyaskingthemselves:Arereversemortgagesreallythatgood?Can wereallyusethemforsomanypurposes?Aremyclientstrulynotobligatedtomakeapaymentintheirlifetime?Moreover,theirmostimportantquestion:Canweofferthisproduct?Canthisbeapartofourproduct

menuforourseniorclients?

Asacareermortgagebanker,27years thismonth,ithasalwaysbotheredmethat themortgageprofessionalhasalwaysbeenlookedatas“thelowestrungonthefinancialprofessionalladder.”Iknow,wedon’tlikediscussingit,nobodyeverwritesaboutit,butweallknowit.Sodowedeser thisreputation?Thismortgageguysays“definitelynot!Forovertwodecadesnowindependentmortgagebrokersandmortgabankershaveoriginatedmoremortgages

inthiscountrythaneverycommercialand

Inatimewhentheentirefinancialindustry,specificallythemortgageindustry,isunderanunprecedentedrestructuring

thereseemstobeashininglight.

Infact,itisduringthetoughestoftimesthatnewindustries themselvesmaterialize,newgiantsemergeandnewideas

createunlimitedopportunitiesthathavealwaysbeenrighttherinfrontofus,yetremainedvirtuallyuntapped.

MichaelBanner

TheBirthofanew

Industry



Dec 08 / Jan 09

savingsbankcombined.Youwouldthinkthatsta1s1cwould

beenoughtotakeuspre:yseriously.Buttheydon’t…

Weallagree,theReverseMortgageindustryisinitsinfancy.

Well,iftheReverseMortgageistheinfantthenthatmakes

us,theconven1onalmortgageworld,theparents…andlike

allgoodparentswehavetomakesureourinfantgetsevery

possibleopportunitytogrowanddothebestitcanforthegreatestnumberofpeople.

Tothisday,thetradi1onalbankingandmortgagebanking

channelsoriginatethegreatmajorityofthereverse

mortgagesinthiscountry.A`erall,thereversemortgageis

…amortgage!Butitisalsoundeniablythemostinnova1ve

financialplanningtoolintroducedtotheseniorsegmentof

thisna1onindecades.

Asstatedintheveryfirstparagraphofthisar1cle,the

mortgageindustryisinthemidstofatotalrestructuring.

Whynotusethisrestructuringtoallowthemortgageindustrytochange,togrow,toevolve,andtotakeitsproper

placeinthefinancialindustry.

TheReverseMortgageistheproductthatwillallowustodo

justthat.

Throughoutthiscountrytherearemillionsoffinancial

planners,lifeinsuranceagents,longtermcareinsurance

agents,longtermcareproviders,inhomecareproviders

andmanyotherindustriesthat“touch”theseniorsegment

ofoursociety.Theyhaveexis1ngbooksofbusinessof

clients62yearsofageandaboveandevenmoreclientsbetweentheagesof40&50thataregreatlyconcerned

abouttheirparentsqualityoflife.Thisisthefutureofthe

ReverseMortgageoriginator.ThisisthefutureoftheReverse

Mortgageindustry!

TheReverseMortgageunleashesthedeepestandmost

untappedequityinthecountrytoday,es1matedat9trillion

dollars,increasingtoinexcessof32trillionasthebaby‐

boomersreachre1rementage.Amortgagewithabelow

marketinterestrate,noincomeorcreditqualifica1onsalong

withnopaymentsforthelifeoftheloandoesn’tmakeit

theul1matemortgageofthe2stcentury,itmakesitthe

ul1matefinancialplanningtoolofthe2stcenturyforour

seniors!

Obviously,therearemanycaseswhereafinancialplanner

isnotneeded.TheReverseMortgageindustryhashad

record‐breakinggrowthoverthelastseveralyearsmostly

throughtheconven1onalmortgageworld.Butweallknow

wehaven’tevencomeclosetoscratchingthesurfaceofthe

poten1alvolumeofthisproduct.Why?

Theanswerissimplebutnotsomethingtheconforming

mortgageworldlikestohear.Seniorci1zensarefine

discussingamortgagewithamortgagepersonbutthey’r

notcomfortablediscussingtheirfinancialfuturewiththe

Addi1onally,theirchildrenarenotcomfortablewithit.Th

arehowever,verycomfortablediscussingtheirlongterm

careneeds,theirtrust,theirlifeinsurance&investment

needswiththeirfinancialplanner,alongtermcareprovidtheireldercarea:orneyoranynumberoftrustedsenior

advisors.

Intheseincrediblyvola1leeconomic1mestheReverse

Mortgageistheproducttrustedsenioradvisorsneedto

guaranteethehighestqualityoflifepossibletotheirsenio

clients.

AlmostoneyearagoMetLife,oneofthena1on’soldest

andlargestinsurancecompanies,announceditsacquisi1o

ofEverBankReverse,oneofthemostsuccessfulreverse

mortgagewholesalersinthena1on.DanDeKeizer,vicepresident&actuaryofMetLifeRe1rementStrategiesGro

saidatthe1me,“thefocusofMetLifeBankisonhelping

seniorsmaximizetheirre1rementincome,includinghelp

themconverttheirassetsintoincometosupportthelifes

theywant.”Healsonoted,“ThatformanyAmericansagin

inplaceisimportanttothemandaReverseMortgageisa

naturalsolu1on.”DonnaDeMaio,PresidentofMetLifeBa

added,“Theacquisi1onofEverBankReversewillhelpus

rapidlygrowthisbusinessandstrengthensMetLife’sposi1

asaninnovatorinhelpingAmericansmakethemostofw

theyhaveinre1rement.”

Now,thena1on’sfinancialindustryisbeingreshaped.Me

giantssuchasMetLifehaveguaranteedthattheReverse

Mortgagewillplayalargepartinthatreshaping.Andlet’

faceit,Snoopyisveryrarelywrong!

Theconven1onalmortgageworld’sbestfriendshavealwa

beentheprofessionalRealtor,theirlocal1tlecompany,th

telemarketer,orinthecaseofthena1onalplayers,their

predic1vedialer.

TheprofessionalReverseMortgageoriginatorwillbebest

friendswiththemanytrustedsenioradvisorsthattouchsomanyseniorsinourna1onandhavethebestchanceo

maintainingandinmanycasesevenbe:eringtheirqualit

lives.

Beapartofthisnewworld,it’sdifferent,it’sbe:er.Ican

youfrompersonalexperience,itfeelsgreat!



10 reversereview.com

TomEmmerson‐TheReverse

Mortgage

Marke&ngPlan,

page28

TomEmmerson

istheVPofSales

forDirectGroup

MortgageMarke1ngDivisionhas

5yearsofdirectmailexperience

–ofthoseyearsinmortgage

marke1ng.Hehasdesignedand

copy‐wri:enmailersforsomeof

thetopcompaniesinAmericasuchasGNC,AmericanExpress,Merrill

Lynch&AlliedHomeCapital.

Bre$

Varner

‐LessonsLearnedFrom

2008,

page24

Bre:Varner

istheVPofProduc1onfor

OMNIReverse.Withover5

yearsofbusinessmanagement

experiencecenteredonsales

development,customerservice

andopera1onsefficiency,Mr.

VarnerjoinedOMNIin2006to

helpdevelopenhancedsalesa

workflowsystems,andtocreat

anintegratedtrainingsystem.

HeearnedhisMBAfromthe

UniversityofRedlands.

contributorsRalphRosynek‐ AsktheUnderwriter ,page7

RalphRosynekisPresidentandCEOofstReverseaswellasaHECMDEUnderwriter.Mr.Rosynekhasbeeninvolved

inmortgagelendingforover30yearswiththelast5+years

exclusivelyprovidingreversemortgagelendingsolu1ons.

TocontactMr.RosynekortolearnmoreaboutstReverse

FinancialServices,Pleasevisitwww.streverse.comorcall

877.574.000.

JohnLunde‐Reverse

Market

Snapshot ,

page2

JohnLundeis

Presidentand

founderofReverseMarketInsig

thepremiersourceformarket

intelligenceandanaly1csservic

inthereversemortgageindustry

RMIclientsincludefiveofthetotenreversemortgageoriginators

bothlenderandindependent

servicers,aswellassomeofthe

largestfinancialservicesfirmsin

theworld.Findoutmoreatwww

rminsight.netorcall949.28.64

SamCollins‐MovingForward

inReverse2009... AvoidtheFollowing

Errors,page6

SamCollinsisthe

PresidentofSamCollinsReverse

Marke1ng,LLCandFounderof

REMALO,theReverseMortgage

Associa1onforLoanOfficers.

REMALOisawebbasedNa1onal

sales,marke1ng,training,andfull

servicecenter,createdexclusively

forReverseMortgageLoanOfficers,Correspondents,Branch

Managers,andkeyexecu1ves,and

brokers.www.remalo.org

JoelSchiffman‐YearfortheRecordBooks,page34

JoelSchiffmanandFedKamenskyarea:orneysofthelawfirmofWeinerBrodskySidmanKiderPC.

ThelawfirmservesasGeneralCounseltoreverse

mortgagelendersandotherindustrypar1cipants

throughoutthena1on.Thefirmhasofficesin

Washington,DC,NewportBeachandHouston.

Addi1onalinforma1onmaybefoundatwww.wbsk.comorbytelephone

at202.628.2000.Messrs.SchiffmanandKamenskymaybereachedat

[email protected]@wbsk.com.



Dec 08 / Jan 09

AtareE.Agbamu,CRMS‐HowReverseMortgagesCanBoostObama’sCallto

Service,page4

AtareAgbamuistheauthorofThinkReverse!(The

MortgagePress,comingthisfall)andmorethan00

ar1clesonreversemortgages.Areverse‐mortgage

specialistinMinnesotaandanadvisertoins1tu1ons

acrossthecountry,hewritestheForwardonReverse

columninTheMortgagePress,since2002.Atarecanbereachedbyemail

[email protected]

MichaelBanner‐TheBirthofaNewIndustry ,page8

President&CEOofLoanWellAmericaInc.,Michaelhas

beeninthemortgageindustryfor27years.HeisoneoffewReverseMortgageprofessionalsaccreditedtoteach

con1nuededuca1onclassesforCFP’s,CPA’s,a:orneys

&insuranceagents.Aprovensenioradvocate,heisa

memberofNRMLA’sState&LocalIssuesCommi:eeand

sitsontheBoardofDirectorsfortheFPAofTampaBay.Michaelhasbeen

interviewedbytheWallStreetJournal,theTampaBayBusinessJournal,

Sr.MarketAdvisor&TheReverseMortgageWireaswellasnumerous

otherReverseMortgageInternetsites.

MonteRose‐TimeManagemen

andSalesProduc&v

page9

MonteRosehas

helpedhundreds

ofseniorsobtaina

reversemortgageduringthepast

years.Heisanaccomplishedspea

andwidelyquotedindustryexper

appearinginfinancialpublica1ons

andna1onallysyndicatedmedia.

Hewasheadofna1onalretail

salesforFinancialFreedomSeniorFundingCorpora1on.Monteis

aCer1fiedSeniorAdvisoranda

Cer1fiedstrengthsCoachwithGa

University.Formoreinforma1on,c

800.56.0545oremail

[email protected].

FedKamensky‐YearfortheRecordBooks,page34

JoelSchiffmanandFedKamenskyarea:orneysofthe

lawfirmofWeinerBrodskySidmanKiderPC.

ThelawfirmservesasGeneralCounseltoreverse

mortgagelendersandotherindustrypar1cipants

throughoutthena1on.Thefirmhasofficesin

Washington,DC,NewportBeachandHouston.

Addi1onalinforma1onmaybefoundatwww.wbsk.comorbytelephone

at202.628.2000.Messrs.SchiffmanandKamenskymaybereachedat

[email protected]@wbsk.com.

Valerie

VanBooven‐AGuideto

FollowingUp,page40

ValerieVanBoove

RNBSNisaSenio

ServiceMarke1ngExpertandthe

Na1onalMarke1ngDirectorfor

NextGenera1onFinancialService

aDivisionofstMarinerBank.

Sheisaprofessionalspeakerand

theauthorofthebooks“Aging

Answers”(2003)and“TheSeniorSolu1on”(2007).Shecanbe

reachedat

[email protected].

Pleasevisitherwebsiteatwww.

myseniorservice.com




reverse mortgage industry snapshot

0Regions,rankedbyHECMunitvolumeYTD.IncludingrankchangefrompriorYTD,aswellasgrowthrates.

Alsoincludesac1velendersandgrowth

Lenderdistribu1ongraphandtable,showingnumberoflendersgrowingatvariousgrowthratesYTDvs.prior

YTD,includingvolumea:ributabletoeachgroupoflenders.

ClientNo6ces

) HelpimprovedataqualityintheReverseMortgageindustry.Ifyoubelieveyourcompany’snumbersonthisreportareinaccurate,pleaseemailus(support@

rminsight.net)andwewillreviewyourfeedbackpromptly.Pleaseincludeyourname,companyandcontactinforma1onalongwithathoroughdescrip1onofthe

suspectedinaccuracy.Thanks!

2) Ifyoureceivedthisreportasatrialorsampleandwouldliketopurchasethisreportorfuturereportsforyourcompany,pleasevisitwww.rminsight.net/MICrepo

php

3) Ifyou’vebeenlookingforasourceforReverseMortgageintelligencebeyondMICendorsementnumbers,we’vegotjustwhatyouneed.Findoutmoreatwww.

rminsight.net/rmarket.php

Rank Chg 2008YTD YTDChg% 2008 Chg%

1 1 24,679 22.41% 820 110.8%

2 -1 18,866 -14.35% 735 53.77%

3 - 11,880 16.76% 379 114.12%

4 - 9,894 3.78% 491 67.01%

5 1 8,696 27.75% 294 90.91%

6 -1 6,943 -3.23% 293 92.76%

7 1 5,632 14.43% 278 86.58%

8 -1 5,206 -13.78% 296 56.61%

9 - 3,424 23.97% 177 58.04%

10 - 2,424 0.58% 165 89.66%

97,644 6.12% 2,756 84.35%

Great Plains 2,827 2.482% -5.22%

Industry Totals 108,287

New England 6,963 5.332% -18.75%

Rocky Mountain 3,296 3.507% 16.82%

New York/New Jersey 8,322 7.111% -8.82%

Northwest/Alaska 5,790 5.768% 7.82%

Midwest 11,434 10.133% -2.21%

Southwest 8,073 8.906% 20.38%

Pacific/Hawaii 25,612 19.321% -19.29%

Mid-Atlantic 11,956 12.167% 10.02%

Region 2007TOT 2008YTD Chg%

Southeast/Caribbean 24,014 25.274% 15.35%

Endorsements Active Lenders Region Share

16,209

New Lenders1,509 11,353

301% to 400%34 4,045 858

over 400%138 10,201 899

101% to 200%98 4,885 2,021

201% to 300%49 1,641 463

-99% to -1%548 44,221 69,300

0 to 100%380 21,298

Growth Rate Lenders YTD MIC Last YTD

-100%

248 2,260

LenderDistribu1onbyYTDGrowthRate

Sta1s1csProvidedbyReverseMarketInsight‐October2008

Top0RankingsbyRegion



Dec 08 / Jan 09

2yeartrendgraphofmonthlyHECMunitvolumeandindustrypenetra1onagainst62+homeownerhouseholdsna1ona

Appendix

)Allsta1s1csbasedonretailorigina1onsfromHUD’sMonthlyHECMMICreports

2)Loansareinunitvolume,basedonHUDreportedmortgageinsurancecer1ficateissuance

3)LendersareaggregatedusingHUD’slenderiden1fica1onnumbersanduniquelendernames,alongwithfeedbackfrom

repor1nglenders

HUDRegionsandCorrespondingStates/Territories

Region‐NewEngland

Connec1cut

Maine

Massachuse:s

NewHampshire

RhodeIsland

Vermont

Region2‐NewYork/NewJersey

NewYork

NewJersey

Region3‐Mid‐Atlan1c

Delaware

DistrictofColumbia

Maryland

Pennsylvania

Virginia

WestVirginia

Region4‐Southeast/Caribbean

Alabama

Florida

Georgia

Kentucky

Mississippi

NorthCarolina

PuertoRico

SouthCarolina

Tennessee

U.S.VirginIslands

Region5‐Midwest

Illinois

Indiana

Michigan

Minnesota

Ohio

Wisconsin

Region6‐Southwest

Arkansas

Louisiana

NewMexico

Oklahoma

Texas

Region7‐GreatPlains

Iowa

Kansas

Missouri

Nebraska

Region8‐RockyMountain

ColoradoMontana

NorthDakota

SouthDakota

Utah

Wyoming

Region9‐Pacific/Hawaii

Arizona

California

FederatedStatesofMicron

Hawaii

Nevada

Region0‐Northwest/AlaAlaska

Idaho

Oregon

Washington

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

6000

8000

10000

12000

2006-11 2007-3 2007-7 2007-11 2008-3 2008-7

P e n e t r a t i o n

U n i t s

MIC Units Penetration %

24MonthPenetra1onandUnitVolume




How Reverse

MortgagesCan BoostObama’s Call

to ServiceAtare E. Agbamu, CRMS



Dec 08 / Jan 09

Reversemortgagescanpromotevolunteerismamongaging

babyboomersandsupportPresidentBarackObama’scallto

communityservice.

ThatwasalessonItookfrommyconversa1onwithPauland

IreneAlexanderofHampstead,NewHampshirewhenIwas

researchingmyrecentlyreleasedbook.

Pre‐babyboomersandlife‐longvolunteers,theAlexanders

areparentsandgrandparents.Paulre1redasahuman

resourcemanager,andIreneservedasalawfirm

recep1onist.Theybelievethereversemortgagetheytook6

yearsagogavethemthefreedomtofocusonhelpingothers

intheircommunity.

“Fromacontribu1onbasis,wewereabletoconcentrateon

contribu1ngtootherpeople’squalityoflife,aswellasour

own,”PaulAlexandersaid.

Un1lPaultookillthreeyearsago,theAlexandersdevoted24hoursaweek(or,248hoursayear)tovolunteerwork.

Na1onally,in2007,about6millionpeoplevolunteered

intheircommuni1esandgave8.billionhoursofservice

valuedat$58billion,accordingtotheCorpora1onfor

Na1onalandCommunityService.VolunteeringinAmerica

reported,between2005and2007,3.2percentofboomers

gave52hoursayeartotheircommuni1es.At78million,

BabyBoomerscoulddoublethenumberofolderadult

volunteersinthecomingdecades.

Theywillhelpaddressneedsineduca1onandotherareas.Ineduca1on,forexample,wewillneedmorethan2million

newteachersinthenextdecade,especiallyinmath,science,

andspecialeduca1on.Theteachershortageisacuteinurban

andruralschooldistricts.Becauseofexpectedstructural

shortageofskilledyoungerworkersandcompe11onwith

otherindustriesforsuchworkers,severalba:alionsof

Obama’s“armyofnewteachers”willhavetocomefrom

highly‐educatedre1redbaby‐boomers.

AsPaulAlexanderknowsverywell,theextracashandthe

no‐monthly‐mortgage‐paymentbenefitofreversemortgages

cangiveboomersthefinancialleewaytoheedObama’scalltoservetheircommuni1es.

“Ifwehadtoworktopayourmortgage,that’sadifferent

story.Wewouldn’tbeabletomakethosecontribu1ons.Itis

agreatsocialplus.It[reversemortgage]istrulyoneofthe

bestthingsthathashappenedtothiscountryinalong1me,”

hesaid.

UnliketheAlexanders,manybabyboomersmayhaveto

workbecausemorethanhalfofthemhaveamortgage

paymentobliga1on.AccordingtoaMetLifeMatureMark

Ins1tutedemographicprofile,56percentofyounger

boomerscarryamortgage.Amongolderboomers,itis53

percent.Theseboomerswillenterre1rementwithsome

monthlymortgagepaymentburden.

Whilesomemayfindmeaningfulworkthatwillalsosupp

thecashtheyneed,othersmayhavetose:leforworkth

maynotfullyusetheirskillsandeduca1onorgivethemt

flexibilitytheyneedinpost‐re1rementwork.Thatiswher

reversemortgagesolu1oncomesin.

Howcanreversemortgagesaidvolunteerism?Therearea

leasttwoways.First,dependingonmortgagebalanceand

equityavailability,areversemortgagestopsthemonthly

nega1vecash‐bleeding.Secondly,itincreasesposi1vecas

in‐flow,givingtheboomerbudgetaryla1tudetomixleisu

withcommunityservice,enhancinglifesa1sfac1on.

Thephysicalandthepsychologicalhealthbenefitsof

volunteerismarewell‐documented.Withamassiveand

permanentagingpopula1onunderway,thepublichealth

valueandtheresul1nghealthcaresavingsofvolunteerism

cannotbeunderes1mated.Therefore,policymakersshou

lookathowreversemortgagescanbeusedtoadvance

volunteerismamongbabyboomers.

OnewayisforanObamaadministra1ontoaskCongressf

moneytowaivetheHECMreversemortgagetwo‐percentupfrontmortgageinsurancepremiumforeligibleolder

adultswhohavegivenatleast500hoursofdocumented

communityservicetwoyearsbeforeapplyingforarevers

mortgage.AnotherisforCongresstogivea$6,000taxcre

forthosewhogave,000hoursofservicetwoyearsbefo

gengareversemortgage.

Duringthepresiden1alcampaign,Obamapromiseda

$4,000collegetui1oncrediteachforstudentswhocomm

toserviceasteachersinhigh‐needcommuni1es.Similar

incen1vesshouldbeconsideredviareversemortgagesfo

thelegionsofolderadultswhoforgore1rementleisuretoservetheircommuni1esandenrichourna1on.

Thinkreverse.Moveforward!




Tobesuccessfulinthereversemortgagebusiness,youneed

totalktomanyseniorclients.Howdoyoudothat?You

needtolearntomarketandavoidtheerrors.Errorsin

marke1ngcostyou1meandmoney.Noma:erhowyou

sliceit,yourchancesofbeingprofitableinanybusinessare

limitedifyouhavepoormarke1ngskills.Theleastcostly

waytoavoiderrorsistolearnfromthemistakesofothers

andmakesureyouavoidthem.

Iwanttosharewithyouaculmina1onof38yearsofexperienceandhowyoucanavoidthemostcommonerrors

madeinmarke1ng.

#ALousyADwillgetlousyresults

Makesureyourcontentisinteres1ng,butmoreimportantly

yourmarke1ngmusthaveaninteres1ngheadlineorinterest

pointtoinvokeabenefitandcreatecuriosityforyoursenior

client.Yourprimaryobjec1veistoavoidbeingthesameas

everyoneelse.

#2EitherNoOffer,oraLousyOffer

Whenyouareprospec1ngfornewseniorclients,youmust

ask,“Whatdoesittakeforsomeonetowanttorespondto

me?”Yourofferhastoberelevanttoyourseniormarket’s

interests,desires,needsandwants.Youmustbesureto

includeanofferinyourmarke1ngapproach.Youroffer

mustbeonethatappealstoyourSeniorClients.Youmust

viewyourinvestmentinseniormarke1ngasa“lifelong”

clientanddeterminehowyoucancul1vateyourbusiness

nowandinthefuture.Youroffershouldbeasgenerousa

youcanafford.Keepinmindtheacquisi1oncostsandth

poten1alprofitsperorigina1on.

#3Crea1ngaTimelineorDeadlineforYourClient

Crea1nga1melineforyourseniorisdifficult.Itcouldbe

1mingisnotrightforthemwhenyoumarkettothem.Yo

needtoapproachthe1melinewiththeatudeofafutu

businessopportunity.However,crea1ngasenseofurge

anda1melineiss1llimportant.Theimportantthingfory

torememberisthatthetortoiseisprobablygoingtowin

raceoverthehare.

Yourseniorprospectisgoingtomoveforwardwhenthey

ready,notwhenyouareready.

Yourgoalistobecomemoreconcernedaboutmakingyo

seniorsfeelgoodaboutthemselvesmorethanaremaking

themfeelgoodaboutyou.

#4LackingProofElementsorTes1monials

Areyoua:endingeveryseniorloanclosing?Ifnotnowis

the1metostart.Reversemortgageclosingsareusually

veryhappy1mes.Closingisthe1meyouwanttoask

fortes1monialsfromyourhappyseniorclients.Ifyou

areunabletoa:endaclosing,youwanttofollowup

withaThankYoucard,survey,andincludecomments

fortes1monials.Usethesefollowupproceduresinyour

marke1nginprint,audioorvideo.Obviously,youwantto

getpermissionbeforeprin1ng.

I don’t know about you but I’m ready for 2009. There is something about the NewYear, it means a new beginning. A way to move out the old and move in the new.

When I entered the reverse mortgage business, my biggest concern was learningas much as I could about the business as quickly as I could. I soon discovered thereverse mortgage business was not about reverse mortgages at all. The reverse

mortgage business is all about marketing. If you don’t know how to market theproduct, then knowing all the technical aspects about the business is useless.

Moving Forward in Reverse 2009 ... Avoid the Following Error

Sam Collins



Dec 08 / Jan 09

#5FailurestoGiveAssuranceoraGuarantee

ForusintheReverseMortgagebusinesstheguarantee

assuranceistheFHAMIP,mortgageinsurancepremium

feature.Youwanttoemphasizethiso`eninyourmarke1ng

efforts.Yourseniorclientsarealreadyscaredofthewhole

“mortgage”process.Whenyougiveyourseniorthis

reassuranceitwillsignificantlyreassurethemandassistthemintheirdecisionbeforemovingaheadwithaReverse

Mortgage.

#6MeTooLookAlikeorAppearance

Whenconsideringyourmarke1ng,trytoavoidthe“metoo”

appearance.MostReverseMortgagemarke1ngmaterials

haveadis1nguishingcommonthread,theyalllookthesame

andhavethesamemessage.Yourgoalistodis1nguish

yourselfandyourproductdifferentlytoyourseniorclient.

Thisapproachwillsetyouapartfromyourcompe11onand

produceresponsesfargreaterthanthemetoomarke1ngpieces.

#7FocusontheClientinsteadoftheWIIFM

Manycompaniesandmarketersaretrappedinthe“I’mthe

greatestormostwonderfulcompanyormostwonderful

persontodobusinesswith”.Trytoavoidthistrap.Your

seniorclientwantstoknow“WIIFM”(What’sInItForME).

Avoidthe“justanotherSalesman”trap.Seniorshavean

uncannywayofbeingabletospotasalesman.Fromthe

senior’sviewpoint;salesmenareoutforthemselves,not

theirclients.

Anotherobjec1veismakingsureyouaddvaluethatyour

seniorclientswillappreciateandrecognize.Whenyour

seniorclientknowsandrelatestowhattheyvalue,thenyou

makeyourselfmorevaluableandyourseniorclientswill

appreciateyouradviceandrela1onship.

#8A:emp1ngtoAccomplishtooManyObjec1ves

Mostmarke1ngcampaignstrytoaccomplishtoomany

objec1ves.It’sonlynatural.Youarespendingalotof

moneyandyouthinkthisisthewaytomaximizeyourinvestment.However,yourgoalisonethingandonething

only,RESPONSE.Yes,youwantyourseniorclienttorespond

toyou.Therefore,yourchanceofgengaresponsegoesup

drama1callywhenyouconcentrateononeobjec1veinyour

marke1ngpiece.Theresponseisgengthecall,sengthe

appointment,takingtheapplica1on.Gengprospectsto

respondshouldbeyourprimaryobjec1veinyourmarke1ng

approach.

#9FailuretoTellSeniorsYourStory

Thebestwaytobuildatrus1ngrela1onshipwithyour

seniorclientsisthroughastory.Seniorswanttoknowhow

aReverseMortgagewillbenefitthemandmakeanimpac

intheirlives.Don’tbeafraidtotellthemthedownsideo

ReverseMortgage.Formostseniors,lifeexperienceshav

proventheyalreadyknowitandtheyarejustwai1ngtosifyouhavethenervetotellthemthetruth.

Atruelifestoryofhowyouoryourteamhavehelpedsen

inthepasttobecomemorefinanciallysecureandhowth

u1lizedtheirhome’sequitytorealizeimprovementstoth

livesandtheirhome,isaneffec1vewaytoshowthemho

othershavebenefitedfromareversemortgage.

Effec1vecommunicatorsknowtheirmessage.“Anyoneca

steerashipbutittakesaleadertochartthecourse.”You

wanttobeagoodleaderforyourseniorclients.




Beforeyouarriveatyourappointmentyoushouldask

yourself:

Whatistheprimarypurposeofmyvisit?•

HaveIpreparedmyseniorclientformymessage?•

Whatelsewilltheyneedtoknowtomakeanintelligent•

decision?

Whatdoesmyseniorneedtoknowtodo?•

CanImakemypresenta1onconnectwithmysenior?•

#0AvoidBeingCute

Mostmarketersthinkcuteisremembered.Trytoremember

thecuteadsthatranintheSuperBowllastyear.Did

thoseadss1ryoutopurchasetheirproduct?Myguessis

probablynot.Bo:omline,cuteisrememberedascute,

butmostlikelyendsupsellingnothing!Keepinmindwe’re

dealingwithseniorsinourmarke1ngandtheyareprobably

scaredashecktoevenconsideranythingthatresemblesa

“Mortgage”regardlessoftheproofwegivethem.

Putyourselfintheclient’sshoes.Imagineyourselfre1red,

youarereceivingnoweeklypaycheck,onlysocialsecurity,

andnowthereisastrangersinginyourlivingroomtrying

tosellyouamortgage.Nextyourseniorclientisthinking,

“Iworkedagoodnumberofyearstopayoffthemortgage,

you’retellingmetotakeoutanotherone?”Wow!Don’ttry

tobecute…we’redealingwithseriousma:ersthataredear

tooursenior’sheartandmindset.

InSummary

HereisyourhomeworkandIwantyoutostarttoday.

Remember2009isyourcueforanewbeginning.Start

collec1ngallthedirectmailpiecesyoureceiveathome.

Startreadingtradejournalsandadvertorials.Collectyou

marke1ngpiecesinalargebox.Onceaweek,justtakeo

hour.Sortthroughtheadsandtossouttheonesyoudonotlike,butkeeptheonesyoulike.Thinkoutsidethebo

and“braindump”astohowyoucanmakethegoodones

rela1vetoyourseniormarket.A`erprac1cingthisproce

forawhile,yourmindwilltakeonawholenewworldof

crea1vity.Youwillbecomeengagedandexcitedaboutyou

opportuni1es.Giveyourideaatest.Mailoutabout00

testpiecesandmeasuretheresponse.Iftheywork,you

haveawinner.Ifnot,youhaven’tbrokenthebank.Go

backtoyourboxoftricksandbraindumpagain.Repeat

process.S1ckwithit.

Thewinnerinourbusinessis“STEADYASSHEGOES”.Theconsistent,organized,compassionate,andwellrespected

marketerwhoisconstantlyanalyzingtheirmarke1ngfrom

starttofinishandeventuallygetstothefinishlineisa

WINNER!

Bestoflucktoyoursuccessin2009.

REVERSEMORTGAGE

LEADS

800-992-2722 www. ArmLeads.com

10%OFF YOUR

FIRS T ORDER

*CALL FOR DE TAILS

Increase sales with pre-qualified

leads & targeted mailings

We have a variety of turn-key

mail and response management

programs to choose from.

Everything is included•

in one LOW price

Outstanding results•

Best performing programs•



Dec 08 / Jan 09

Salesproduc1vityisa“mul1‐factorial”problem.Whatthis

meansisthatseveralkeyelementsmustbeinplacebefore

predictableproduc1vityhappens.Therearepersonality,

behavioral,strategic,andexecu1ondimensionsthathaveto

allcometogetherbeforesuccesshappensinaconsistentand

sustainablemanner.

Inapreviousar1cle(TheFounda1onsofEffec1veExecu1on),

Iintroducedtwoconceptsthatmustbeaddressedin

coachingbreakthroughsalesperformance(a)theabilityto

consciouslymanageone’s“Skills‐Brand‐Reach”porolio,

and(b)theuseofasystemic1meandenergymanagement

approachsuitedtotheindividualsalesperson.

Ideally,integra1ngthesetwoideasinthesimplest

possibleway(inreal1me)resultsineffec1veandefficient

salesperformance.Thechallengeishowtocustomizea

produc1vitysystemthatisbothsimpleandsophis1cated

enoughtoprovidealearningfeedbackloop.Thisallowsthe

manager(andtheproducer)anintelligentwaytochange“thegame”basedonthesuccessofthesalesbehaviors,as

wellasthechangesinthemarket’srequirements.

Timemanagementsystemsinandofthemselvesdonot

guaranteeresults.Efficiencydoesnotalwaystranslate

tosalesresults.Themostobviousreasonisthatthe

correctdirec1on(orinsight)mustfirstbedetermined.

AsI’vemen1onedbeforeinearlierar1cles,successful

produc1onoccurswiththeunityofcorrectinsightwith

consistentac1on.Anditispreciselythela:erideathat1

managementaddresses.Withoutcontrollinginsight(and

therightlevelandqualityofmo1va1onandgoalclarity),

theshellof“1memanagement”technologydegenerates

intowastedenergyatitsbest,andtheverysourceofcare

distrac1onatitsworst.

Therearepeoplewhosurvivewithoutanysophis1cated

1memanagementsystems,providedtheyhavetheright

energyandsustainedtac1calexecu1ononadaytodayba

However,mostpeoplewhoachievebreakthroughresults,

bydefini1on,havealmostalwaysfashionedasuccessful

personalsysteminmanagingtheirworkweek.

Mostsalespeoplearenotconnoisseursof1memanagem

theories.Myownviewonthema:eristhatformfollows

func1on.Forminthiscaseisthe1me“system”thatone

uses,whilefunc1onreferstotheworkloadofprospec1ng

andconver1ngthateverysalespersonmustdoregularly.

Havingsaidthat,it’ssome1mesveryusefultoexplorewhat’souttherethatcanshortenourproduc1vitylearnin

curve.Effec1ve1memanagementisacrucialsurvivalskil

especiallytobeginningproducerswhoaretypicallyswam

withthechallengesoflearningtheproduct,understandin

theseniormarketplace,andnaviga1ngtheback‐office

terrain.

Lakein’sA‐B‐Cpriori1za1onframeworkandCovey’stop‐

downsystemhavebeentheestablishedapproachesinth

Time Management

and

Sales Productivity

Monte Ro




1memanagementfield.Morerecently,DavidAllen’ssystem

(GengThingsDone)hasbeenincreasinginpopularitysince

thebook’spublica1onin200.

Allen’ssystemhashadalotoftrac1oninthecorporate

trenches,specificallyamongknowledgeworkerswhoare

swampedwithcommitmentsandinforma1onoverload.The

basicconceptofGTDisgengallthe“stuff”thatentersyourlifeoutofyourheadandintoa“trustedsystem.”Forhis

followers,Allenprovidesasystemthatreducesstressanda

structuredapproachtohandlingtheincreasedcomplexity

oftoday’sworkenvironment.UnlikeCoveyorTomPeters

whofocusonMission,Vision,andGoals,Allen’sbo:oms‐

upapproachinvolvescollec1ngandprocessinginforma1on

intoasophis1cated“filingsystem”andretrievingthem

throughdailyandweeklyreviews.Hepopularizedtheidea

of“contexts”whicharesimplybucketsoftasksthathave

thesameloca1onorsourceofac1on(e.g.,home,office,

errands,phonecalls,etc.)

Allen’sapproachcanbequiteeffec1veforsalespeople,

dependingontheindividual’spersonalityandpenchantfor

detail.Becauseitisaverysophis1catedsystemtolearnand

implement,itsome1mescanhaveaverysteeplearning

curve.ThemostimportanttakeawaysfromGTDarethe

conceptsofNextAc1on,theWeeklyReview,andtheideaof

UbiquitousCapture.

NextAc1onsaredefinedasthesingularac1onthatmoves

aprojectorgoalforward.(Forexample,“BuyaHouse”is

notaNextAc1on.Rather,itisa“Project”withamul1tudeofnextac1onsthatneedtobedonemostlyinsequence.)

TheWeeklyReviewreferstosystema1callylookingatopen

loops(ac1onsthatwerestalled,aswellasnew“stuff”that

hascomeinduringtheweekthatneedstobeprocessed).

UbiquitousCapturereferstothehabitofwri1ngdownideas,

informa1on,andcommitmentssothatyoucandoand

deliverwhatneedstobedone.Thisisanimportanthabitto

cul1vatewhenyouwanttoimpressclientsandcolleagues

aboutbeingaprofessionalwho“neverdropstheball.”

Themaincri1cismofGTDhasbeenthelackofapreciseand

systemicwaytoaddressthewholeissueofpriori1za1on.GTDcanmakesomeoneextremelyefficient,buts1llnot

achieveexcellentproduc1vityintermsofsalesresults.

However,inallfairnessthiscri1cismoftheGTDapproach

hasmoretodowiththeclarityofgoalsandstrategicinsight

ratherthanthemethoditself.Forthosewhoareinterested

inlearningmoreaboutGTD,IstronglyrecommendDavid

Allen’sbook.Mostsalespeoplewhousethesystemcreate

theirownmodifica1onstosa1sfytheuniquechallengesof

theirworkflow.Youdon’thavetoimplementeverythingthat

Allenwritesaboutforyourgametoimprove.Everyli:le

thingyoupickupandapply(e.g.,howtosetupa1cklerfi

orafilingsystem)canandwilltransformyourproduc1vit

andcapacitytodealwithstress.

Themostrecententrantinthe1memanagement

conversa1onisMarkForster,aBri1sh1memanagement

consultantwhowrotethebookDoItTomorrow,publishein2006.IfindForster’sideassimpleandeasytoimpleme

andpoten1allyhelpfulforsalespeople.Thekeyconcepto

DITistheideaofmaintaininga“closedlist.”Theculpritsi

non‐produc1vedayaretypicallythecountlessinterrup1o

thatpreventusfromtacklingourto‐dolists.Inmy

experience,salespersonsaremoresidetrackedbytheirow

lackofstrategicdailyac1onplansthanexternalinterrup1

fromclientsorcorporatecolleagues.Corporatefolksare

thosewhonormallyexperienceexternaldemands.Inbot

casescrea1ngandimplemen1ngan(insight‐based)strate

closedlistbecomesthefounda1onofproduc1vityand

results.Forsalespersons,thisalwaysgoesbacktoeffec1vandefficientprospec1ngandconver1ng.Everythingelse

tosupportthesetwofounda1onalac1vi1es.

Forsterarguesthatthebaneofproduc1veexistenceis

theproblemofthe“openlist”thatisconstantlya:acked

bytherandomnessofemergenciesanddemandsfrom

colleaguesandsuperiors.Crea1ng(andprotec1ng)one’s

closedlist(whichhealsocallsawill‐dolist)andrelega1ng

non‐essen1alstoalater1meisthecruxofDIT’sapproac

ComparedtoGTD’sscopeandmethodology,Forster’side

arestreamlinedandeasiertoimplementimmediately.Itdoesn’tmean,however,thatit’seasiertomastercompar

toanythingelse.AswithGTD,theconceptofmanagingt

closedlistrequiresdisciplineandconsistentprac1ce.

Forsterisagainstpriori1zing“tasks.”Insteadhebelievest

priori1eshavetobesetatthelevelof“projects.”Thisisa

simplebutbrilliantdis1nc1onpriori1eshavetobesetat

thelevelofcommitmentsonechoosestoaccept,i.e.,wh

project/sdoIneedtodofirstthatwillbringmecloserto

bo:omlineresultsIrequire.

WhetheryouuseGTDorDIT(oracombina1onofbothapproaches),strategicinsightisaprimarydeterminant

ofsuccess.Bothareexcellenttoolstoimproveefficiency

andleverageyour1meandenergy.However,withoutthe

controllinginsightthatconnectsyourownuniquestrengt

withthemarketplaceenvironment,1memanagement

“technology”caneasilybecomeasourceofaddi1onal

distrac1ontothemaingoalofprospec1ngandclosingth

sale.



“ Atare Agbamu is one of only a handful of people in the reverse mortgage arena

who possesses a commanding understanding of the reverse mortgage industry.

As an originator, he has hands-on experience educating seniors and their advisors.

As author of the “Forward on Reverse” column in The Mortgage Press since 2002,

Atare Agbamu communicates nationally with the housing finance community,

bringing the unique insights and experience of an ardent reverse mortgage expert

into a wider business context.

“ This book combines Atare’s keen insights and know-how with extensive research to create a first

of its kind resource for the reverse mortgage industry. It offers a comprehensive overview of the indus-

try plus detailed information on marketing and originating reverse mortgages.

“Present and future reverse mortgage professionals and senior advisors will profit from

decades of experience skillfully woven into this book. If you plan to succeed in this industry, this

book is the place to start.” —Sarah F. Hulbert, President, Senior Financial Corporation and former four-term Co-Chair of NRMLA’s Board

of Directors

“When I first began reviewing the contents of this book, I became quite jealous ... Atare Agbamu

has set down an impressive amount of information ... And he delivers it in an easy-to-read, simple-

to-understand style that will make this book essential reading for all reverse mortgage

professionals.” —from the Foreword by Jim Mahoney, Co-Founder and Former Chairman, Financial Freedom Senior Funding

Corporation, and former four-term Co-Chair of NRMLA’s Board of Directors

“The stories [Chapter 15: Profiles in Satisfaction] are the best vehicle to increase understanding and acceptance of reverse mortgages among us laypeople. They are very compelling ...” —Therese Cain, Executive Director, Minneapolis/St. Paul Chapter of Little Brothers—Friends of the Elderly

“This book should be required reading for all new loan consultants originating reverse mortgages and

is recommended for experienced ones as well. This book provides excellent insight and information

on preparing ahead to provide the service our seniors deserve, to ensure a smooth loan process and

shorten the time to closing. Most of the problems caused in the processing and closing of reverse

mortgages come from inadequate preparation.” —Deanne Opstad, AVP, Senior Underwriter, Generation Mortgage Company

Think Reverse!

Table of ContentsPart I:

The new pillar of retirement security

Part II:

Marketing reverse mortgages: It’s all about education

Part III:

Originating reverse mortgages

Part IV:

Enhancing freedom: The essence of reverse mortgages

Part V:

A new frontier in mortgage lending

Only

$49.95Plus Postage

& Handling




Inearly2006,theNa1onal

CounselingonAging(NCOA)

metwiththeU.S.Department

ofHousingandUrban

Development(HUD)todiscuss

aconceptforanon‐profit

organiza1onthatmight

provideforamorestable,

transparent,andsustainablefundingmechanismforreverse

mortgagecounseling.Also,

therewastheneedtoaddress

theestablishmentofna1onal

opera1ngstandardsforHUD‐

approvedreversemortgage

counselingorganiza1ons

andtheircer1fiedHECM

reversemortgagehousing

counselors.HUDsawpossible

valueinthedevelopmentof

suchanorganiza1onaslong

asmembershipremained

voluntary.NCOAmetwith

MoneyManagement

Interna1onal(MMI)to

exploreitsinterestinpursuing

thedevelopmentofa

voluntarynon‐profitassocia1onofreversemortgagecounseling

organiza1ons.Alongwithseveralotheragencies,MMIwas

interestedandvolunteeredtocontribute1meandefforttohelp

launchwhichisnowtheNa1onalHousingCounselingAssocia1on

(NHCA).

ThankstotheleadershipofIvanHand,ChuckStanley,andDanielFentonofMMI,NHCAwasformedinWashingtonDCinMarch

2008asanon‐profitorganiza1onwith8otherpar1cipa1ng

reversemortgagecounselingagencies.Today,NHCAhas3

memberagencies,whichprovidemorethan70%ofthereverse

mortgagecounselingconductedna1onally.Inaddi1on,NHCAhas

morethan230membercounselingloca1onsthatemployover

300reversemortgagecounselorsacrossthecountry.Sinceits

incep1on,NHCAmembershavehelpedmorethan200,000seniors

withtheirreversemortgagecounseling,anditcon1nuestocounsel

over7,000seniorseverymonth.

ThemissionoftheNHCAistohelpreversemortgagecounselors

improvethelivesofseniors.NHCA’sobjec1veistosupportHUD‐approved50(c)(3)reversemortgagecounselingagenciesinthe

deliveryofhighqualityreversemortgagecounselingservices.This

isaccomplishedbycrea1ng,promo1ng,andenforcingopera1onal

bestprac1cestandardsforNHCAmembersthatimprove

consistencywithinthereversemortgagecounselingindustry.As

aresult,theabilityofreversemortgagecounselorstorespond

effec1velytotheever‐changingneedsandop1onsofseniorswho

areconsideringreversemortgagesisenhanced.Inaddi1on,the

administra1veburdenofthecounselorisreduced.Intheprocess,

detailedreversemortgagecounselingplandataiscapturedfor

researchandcon1nued

advocacy.Aswell,byu1liz

astandardtechnology

plaorm,NHCAisableto

garnerandensureapprop

levelsofcounselingresou

whileprovidingobjec1vity

consistency,andtranspare

inthereversemortgagecounselingprocess.

Sinceitsincep1on,NHCA

beentheunifiedvoicefor

reversemortgageindustry

thelendingandregulatory

communitybyworkingwi

industrystakeholders.NH

hasalreadyworkedeffec1

withAARP(American

Associa1onofRe1red

Persons),Na1onalReverse

MortgageLendersAssocia

(NRMLA),NCOA,andHUD

effec1velytransi1ontoth

“borrowerpay”ini1a1vef

reversemortgagecounsel

AnotherNHCAgoalistofacilitateandadvocatefinancialsuppo

forreversemortgagecounselingprograms.NHCAwillworkwit

lendersandHUDtodevelopaconsistentprocesstoensuretha

allreversemortgagecounselingagenciesarepaidforcounselin

whenpaymentissupposedtooccuratclosing.NHCAisalsowi

toadvocatewithotherstakeholders,suchasNRMLA,forFHA

fundingforreversemortgagecounselingratherthanthroughthpresent“borrowerpay”mechanism.

NHCAisanon‐profitorganiza1onthathasadiverseand

independent2‐memberBoardofDirectors.Oneboardmem

isanexpertonagingissues,anotherisanexpertonconsumer

economiceduca1on,andthereareseveralindependentexpert

providingmanagementandfinancialadvice.MichaelKeenewa

appointedpresidentinJulyalongwithamarke1ngprofessiona

thetworepresentthecoreoftheNHCAmanagementteam.

TheQualityImprovementAdvisoryCommi:eeiscomposedof

agencyrepresenta1veswhomakerecommenda1onstotheBoa

oncounselingprotocol,membershipstandards,andontheCodEthics.ChangeswillbereviewedbytheIndustryAdvisoryCoun

andapprovedbyNHCA’sBoardofDirectors.AllNHCAmember

agreetoprovidedataviaNHCA’sstandardplaorm,whichinclu

appropriatesafeguardssothatconfiden1alityofcompe11ve

agencyinforma1onisnotcompromised.Thisdatawillbeused

conducttheresearchinordertoimprovethequalityofreverse

mortgagecounselingalongwithinputfrommemberagenciesa

otherindustrystakeholders,suchasNCOA.Withtheassistance

NHCABoardmemberDr.AngelaLyons,thisdatawillalsobeus

toprovethevalueofreversemortgagecounseling.NHCAresea

MichaelKeene

President



Dec 08 / Jan 09

willdemonstratethevalueandguidetheevolu1onofreverse

mortgagecounselingforthefuture.

TheIndustryAdvisoryCouncil(IAC)iscomprisedoflendersand

industryexpertsrepresen1ngacrosssec1onofthereverse

mortgageindustry.Themembersprovideinputandadviceon

behalfofthelendingcommunitytothemanagementteam

regardingbestprac1ces,marketresearch,analysisofthereverse

mortgageindustry,andgeneralcounselingissues.TheIACelectsoneex‐officiomembertotheNHCABoardofDirectors.

AstandardNHCAmembershipis$00monthly(thereisno

applica1oncharge).Thiscostpermonthincludesmemberswith

mul1pleservicebranchoffices.Astandardmembershipincludesall

ofthefollowing

Receiveallgeneralreversemortgagecounselinginforma1on,•

updates,no1ces,HUDMortgageeLe:ers,no1cefromHUDfor

publiccomment,andlawupdatesandchanges

ReceivecurrentnewsonHUD,industryandpressreleases•

ReceiveNHCAonlinenewsle:er•

Receiveresearchandaggregatedataandrepor1ng•

Par1cipateinindustrymee1ngsandconferences•

Par1cipateinthedevelopmentofindustrybestprac1ces•

Receivereferralsthroughthelis1ngandmapsontheNHCA•

Website

AccesstoNHCA’scounselingmanagementsystem,which•

providesstandardizedcounselingprotocol,billingand

collec1ngofthecounselingfee,repor1ng,trackingclient

progressforlendersandcounselingagencies,andHUD,CMS,

andCARScompliance

Accesstothemembersec1onoftheNHCAWebsite•

PlacementoftheNHCAlogoonthememberWebsite•

Receiverepresenta1ontolenders,NRMLA,HUD,AARP,NCOA,•

regulators,andthemediaReceivequalityimprovementandresearch•

DirectConnectisNHCA’sexclusivetechnologypartner,andNHCA

memberagencieshaveexclusiveuseofthesystem.DirectConnect

providesupdates,enhancements,andongoingtrainingtolenders

andcounselingagenciesonhowtousethesystem.

NHCAmembershipisopentoallHUD‐approved50(c)(3)reverse

mortgagecounselingagencieswithappropriateinsuranceand

fidelitybonding.Inaddi1on,allNHCAmemberagencieswillbe

requiredtoadoptandfollowbothNHCAmembershipstandards

andtheCodeofEthicsaspartoftheirNHCAmembership.NHCA

membersensurethatreversemortgagecounselorswillprovidecounselingservicestoseniorswithin72hours.

Today,HUD‐approvedreversemortgagelendersandtheirloan

officersfacemanychallengesinmee1ngthereversemortgage

counselingneedsfortheborrowerstheyserve.NHCA’sreliable

technologyplaormprovidesarobustbilling,tracking,and

collec1onsystemforthepaymentofcounselingfeesunderthe

new“borrowerpay”regula1onfromHUD.NHCA’sinterac1ve

paymentsolu1onsystemoffersborrowerstheop1ontopayby

creditcardorACHup‐front,ortofinancetheircounselingfeeinto

theirloan.NHCAmemberagencieschoosewhethertogivesen

theop1ontopayup‐frontoratclosing.Agenciesthatchooset

seekpaymentup‐frontdosoaslongastheseniorinvolvedcan

affordtopay.Iftheseniorcannotaffordtopayorhasahardshi

paymentcanbemadeatclosing,oritcanbewaived.NHCAha

comprehensivesetofcounselingchoicestomaketheprocesso

reques1ngcounselingasconvenientaspossible.AsHUDrequir

thatseniorsmaketheini1alcontactwithacounselingagency,

NHCAhasmadethefollowingop1onsavailableInternetregistra1onandselec1onofthereversemortgage•

counselingagencydirectlybythesenior

Faxregistra1onanddirectselec1onofthereversemortgag•

counselingagencybythesenior

Callingareversemortgagecounselingagencydirectlyfrom•

counselinglistthatcanbeobtainedthroughthehomeown

sec1onoftheNHCAWebsite(www.LearnReverse.org).

Althoughlenders’useofDirectConnectso`wareisnotrequired

workwithNHCA,itisstronglyrecommendedthatlenderscon1

toregistertheirclientsinDirectConnecttosimplifythecounsel

processfortheirborrowers.Lendersubscribersaccessing

DirectConnect’sWebsitecan

Generateacustomizedcounselinginforma1onpacktailore•

theneedsoftheirindividualclient

Ensurethatcompleteandaccuratelenderinforma1onis•

providedtothecounselingagency(reducingadministra1ve

problemsandclientconfusion)

Con1nuetousethepowerfultrackingandrepor1ngtools•

AtNHCA,wetakeprideinourmemberagenciesandtheborrow

theyserve.Inaddi1ontoadheringtoourmemberstandards

andCodeofEthics,memberagenciesagreetopar1cipateinou

disputeresolu1onprocesswherebyanylenderorseniorcanfil

complainteitheraboutanagencyorareversemortgagecounseThiscanbeaccomplishedontheappropriatepageoftheNHCA

Websiteorthecomplaintcanbesubmi:eddirectlytoMichael

KeeneatNHCA.Allcomplaintswillbethoroughlyinves1gated.

Feedbackwillbeprovidedtothecounselingagency,andall

complaintswillbetrackedandrecordedbyNHCA.

NHCApledgestohelpandsupportthedeliveryofhighquality

reversemortgagecounselingtoseniors,toensurethedelivery

ofconsistent,reliablecounselingservices,andtodevelopa

sustainablesourceofrevenueforcounselingagenciestooffset

costofprovidingthismuch‐neededservice.NHCAwillaccomp

thisbyworkingwithHUD,lenders,NRMLA,andagingadvocate

helpimprovethemarketforreversemortgagecounseling.

WehopeeveryonewillbeablejoinusatourNHCAAnnual

ConferenceonMarch24,2009inWashington,DC.More

informa1onwillfollowsoon,anditwillbeavailableonourWeb

site,www.LearnReverse.org.

Advertorial by National Housing Counseling Associa

About Michael Keene : Michael was appointed President of the National

Housing Counseling Association in July, 2008. He was the Vice Presiden

of New Program Development at Money Management International for t

previous 5 years. He was responsible for the design, testing, departmen

coordination, rollout, and evaluation of new program offerings. Michael.

[email protected] 510.287.6085



Dec 08 / Jan 09

A s we look at 2008, most of the Reverse Mortgage industry will agree, this year was

a much more challenging year than we anticipated. Even as the economic downtusolidified its foothold, many of us saw it as greater opportunity to communicate thbenefits of the program.

For those who survived, 2008 provides a wealth of information and lessons to draw upon this industry continues to mature and grow. A simple lesson I learned from a coach whenwas a young man, “It’s easy to stand tall when everything is going your way, but the tru

measure of man is how he reacts when tested by difficult challenges.”

Lessons

from 2008 LearnedBrett Varner




Withthatinmind,thefollowingarethoughtsonsomeof

thelessonslearnedin2008andwhattheymeantousasan

industry.

RMisNOTRecessionProof–Althoughfewpeoplecould

havebeenpreparedforthedepthandbreadthofthe

loomingrecession,thisindustrysawopportunityon

thehorizon.Asreturnsandvaluesofre1rementassets

decreased,ReverseMortgagewasprimedtobeseen

byseniorsasasafehaven.Whatothervehicleinthis

environmentwouldprovidethemasecurityblanketto

weatherthestormandmaintainorimprovetheirquality

oflife?Mostoriginatorsoverlookedthedebilita1ngfear

createdbyanuncertainmarket.Seniorswhocouldtruly

benefitfromthisproductchosetheperceivedsafetyofdoing

nothing,evenincasesofmortgagelatesand/ortaxdefaults.

Asthenightlynewsportrayedeconomicdoomandgloom,

manyolderAmericansseemedtoshutdownandchoose

theheadinthesandapproach–byignoringtheirfinancial

difficul1es,theydidn’texist.RMSpecialistscoulddoli:le

morethanaskwithexaspera1on,“Ifyoudonothing,will

thingsgetbe:er?”

DirectMail,JustSendMore?–Earlyin2008,companies

sendingdirectmailsawasurprisinglylargedropinresponse

rates.Atfirst,wetriedtoexplainitawaywiththevolumeofpoli1calmailduringaconten1ouselec1onyear.Marketers’

responsewastoincreasevolume.Aslongasconversion

ratesstayedsteady,theonlydrawbackwasanincrease

inthetransac1onalmarke1ngcost.Ofcourse,marke1ng

expertshadnotyetrealizedtherealityofthemarketplace

anditsimpactonconversionrates.Costsincreased,revenue

decreased–somecompaniessurvived,somedidn’t.

Theques1onthatkeptcomingtomymindis,“Whoarewe

talkingto?”Inmanyofthemailpieces,themessagewas,for

themostpart,thesame,“Government‐Insured,NoMonthly

Payments,Tax‐FreeIncome,NoCredit/IncomeQualifying.”Whatsolu1ondoesthisprogramdescrip1onprovide?

This“shotgun”approach,blanke1ngareaofhomeowners

62andover,providedareasonableresponseforsome1me

asitpiquedtheinterestofasufficientnumberofseniors.

However,asthechallengesfacedbyseniorshavebecome

morecomplex,thisapproachfailstocommunicatedirectly

withtherecipients.

Messagingdirecttotheneedsofadiverseclientelerequi

amore“laser”approachthat

requiresfurtherdefiningthemarketintosub‐segmentsusingmore

specificmetrics.Abe:erdefined

targetallowsacompanytocra`a

messagethatspeakstotheneeds

ofthatspecificgroup.Although

thisapproachshouldleadtoa

be:erqualified,moreinterested

lead,itcanbeariskyapproach

ifthemessagefailstoreachthe

demographic.Thetruthismany

directmailcompaniesdonotyet

understandtheseniorpopula1on.

PeopleareMoreImportantthan

Product–Themostcommon

mistakeinReverseMortgagesalesis

thatitisabouttheproduct.Many

salespeoplebelievethatiftheycan

explaintheproduct,itwillsellitself.

Wehaveallheardthecomment

fromconsumers,“Itjustsoundstoo

goodtobetrue.”Conven1onalRM

wisdomsays,“Withaproductlikethis,aproficiencyinexplaininghow

itworksshouldbeenough.”Itisn’t.

Icallthisthe“OrderTaker”vs.the

“TrustedAdvisor”.Simplyput,the

OrderTakerregurgitateseverything

abouttheproductandthenwaits

fortheconsumertocometothe

checkoutline.TheTrustedAdvisor

seekstotrulyunderstandwhatthe

clientisfacingandstrivestoprovide

meaningfulsolu1onsbasedupontheclient’sneeds.Theadvisorisableto

detailwhattheclientshoulddoto

improvetheirsitua1onandguides

themthroughtheprocess.

Fromamanagementperspec1ve,thereisnobiggerdrain

onacompany’sresourcesthantheOrderTaker.The

OrderTakerisgenerallyascriptreader,spewingproduct

informa1onandisunabletoadeptlyveeroffscriptto

“The overriding lesson of 2008 is simple, this industrlives and provide respect, dignity and security to old

the Amer



Dec 08 / Jan 09

respondtoaclient’slackofunderstandingorfearbased

objec1ons.TheOrderTakereither

lackscapability,orjustplainfails,todevelopsufficientrela1onshipwith

theirprospectstobeabletoaddress

issuesinastraighorwardmanner

thathelpsaclientovercomethe

oènmisguidedobjec1ons.

TheTrustedAdvisor,conversely,

maximizesresultsbylisteningto

hisclients,spendingmore1me

askingques1ons,listeningtothe

concernsoftheprospect.Fostering

abe:erunderstandingofthe

individualclientallowsthemto

craìnforma1onbaseduponthe

specificneeds.Ul1mately,they

consistentlyrelatetheprogram’s

benefit,notinfinancialterms,but

inmoreimportantpersonal,quality

oflifeenhancingaspects.Although

thissalestypegenerallyhashigh

conversionrates,theinherent

danger,ifpoorlymanaged,istoo

muchfocusonrela1onshipthatlengthensthesalescycleandlimits

thenumberofclientstheycanassist.

Thestrugglesof2008hashelpedto

filteroutordertakersandgenerate

moreopportunityforadvisors.

Thechallengefor2009istofocus

onhelpingtheTrustedAdvisors

maximizetheirproduc1oncapacity.

TheRealityofCompe11on–Aèr

mul1pleyearsofsignificantgrowth,

theReverseMortgagesector

garneredincreaseda:en1onas

thesubprime“meltdown”le`many

“other”en11eslookingforthenext“easy”buck.This

productseemedripeforthepicking.Clearly,itcouldn’tget

anyeasiernocreditscoreorincomequalifying,just“age&

equity.”Thishadtobethenext“refi”boom.

Yes,theinfluxof“compe1tors”hassiphonedoffashare

ofexis1ngbusinessfromestablished,dedicatedReverse

Mortgagecompanies.However,thevastmajorityofnewentrantshavefailedtoproducemorethanafewloanspe

month.Manyhavevanishedasquicklyastheyappeared

Whyisthis?Simply,theirbusinessmodelswereunprepa

fortheslowersalescycleoftheReverseMortgagemarke

Highini1alexpenditures,combinedwithslowerdevelopin

revenueshavebeenunsustainableformanycompanies.

Others,inresponsetofailinginterestrates,havegleefully

returnedtotheir“turnandburn”forwardmodels.

Currenttrendssuggestthatthesiphoningeffectwillbe

short‐lived.Inthelongrun,established,dedicatedrevers

Mortgagecompanieswillcon1nuetodominatemarket

share.Although,asinanymaturingmarket,thenumber

qualitycompaniescontrollingthemarketwillincrease(no

withstandingsomeexpectedconsolida1on),companies

lookingtoReverseMortgageasastopgapmeasure,quick

product,oradd‐onfeaturewillfailtogainsignificantfoo1

inthisspace.

ForthosecompaniesdedicatedtotheReverseMortgage

space,weneedeachother.Weallhaveavestedinterest

infosteringaposi1veimageofthecommitmenttoand

concernfortheclienteleweserve.Withacommitmenttunderstandingourdemographicandafocusonservice,i

willbetheclientsthatchoosethecompanythatbestsuit

theirneedsanddedicatedcompanieswillgetbe:erat

iden1fyingtheir“ideal”prospect.

Theoverridinglessonof2008issimple,thisindustry

representsaproductthattrulyhasthecapabilitytochan

livesandproviderespect,dignityandsecuritytoolder

Americanswhorepresentsomuchofwhatisimportantt

theAmericanWayofLife.Weareintheuniqueposi1on

buildcareerswhilegivingsomethingbackforthelivesan

sacrificestheyhavemadefortheirfamilies,communi1es

andcountry.

Wehaveadutyandresponsibilitytolearnfromour

experiences,con1nuetoimprovethisindustryandhelp

protectitsintegrity.Wesetthestandardthatpar1cipant

neworold,mustcon1nuallyaspireto.

esents a product that truly has the capability to changmericans who represent so much of what is important tWay of Life.”




IfyouareaReverseMortgageexpertandplanonbuilding

yourmortgagebusinesswithReverseMortgages,READON!!

Now,ifyouplantodabbleanddoafewReverseMortgages

hereandthere,youmaywanttostopreadingandturnthe

pagetothenextar1cle.

ReverseMortgageisoneofthefew–ifONLY–growing

productsinthemortgageworld.It’sagreatplaceto

be,however,itisafardifferentworldthantheforward

mortgage.

Onceyouhavemadethedecisiontofocusyourbusiness

onReverseMortgage,thebestthingyoucandoisposi1on

yourselfastheexpertinthisfieldinyourcommunity.Some

helpful1pswouldbetoaguestonalocalradioshowthat

caterstotheseniorcrowd.Youmayevenbeabletobeon

weeklyandprovidehelpfulinforma1ontothelisteners,as

wellasmarketyourselfandyourservices.Anothergreat

ideaistocontactlocalchurchesorseniorcenters.Partner

withyourlocalestatea:orney(s)andjoinanetworkgroup.Thiswillgiveyougreatvisibilityintheprofessional

community.

Asyoubegintoalignyourselfinyourcommunity,youwill

begintoreapthebenefitsofthehardwork.Youwillsoon

learn‐ifyouhavenotalready‐seniorsareveryloyalandwill

beagreatsourceofadver1sementforyourbusiness.Ifyou

providethebestservicetooneseniorcouple,theyaresure

toshareitwiththeirfriendsandthosefriendswillbeasking

foryournameandnumber!

YoumustalsokeepyourselfeducatedontheReverseMortgageproduct.Thereareimprovedprogramsand

updatedlawsandyouneedtostayontopofthesechanges.

Thiswillallowyoutoprovidetop‐notchservicetoyour

seniorclients.Joininganorganiza1onsuchasREMALO

(ReverseMortgageAssocia1onforLoanOfficers)willprovide

yousomeexcellenttoolstokeepyouontopofthelatest

news,marke1ng1ps&othergreatresourcesinReverse

Mortgageindustry.AnothergreatresourceisSandraWiley’s

ReverseMortgageblog(sandrawileyonreversemortgages.

blogspot.com).Sandraisthena1onaltrainerforAlliedHo

MortgageCapitalCorpora1on.

UsingDirectMailtoGenerateRevenue

Ifyouhaveneveruseddirectmailaspartofyourmarke1

programinthepast,Iencourageyoutoreadon.O`en1

peopledon’tu1lizethisvaluableresourceavailabletothe

becausetheydon’tfullyknowthebenefitstheycanreap

Mygoalinthispor1onistoeducateyouondirectmailan

showyouthevalueitcanbringtoyourbusiness.

Origina1ngloansthroughdirect‐mailleadgenera1onis

themosteffec1veandprofitablemeanstoincreaseyour

monthlyfundingvolume.Youasamortgagebrokershou

maximizeyoursalesproduc1vitybyinves1ngmostofyou

1meinpre‐qualifiedleads.Prospec1ngisalow‐wagejob

sellingisahigh‐paidjob!Whywouldyouusehighlypaid

salespeopletodolow‐wagework?

Direct‐mailmarke1ngcanbeveryeffec1vebutit’snotas

easyasyoumaythink.Why?Becausedirect‐maildoesn’

workaswellasitusedto.Partoftheproblemisthere

issomuchofitsatura1ngpeople’smailboxestodayand

becauseofthat–peoplehavelearnedtoignoreit.The

biggestproblemwithanyadver1singmediumtodayistha

itfightsforpeople’sa:en1onbyinterrup1ngthem;but

thereisfartoomuchgoingoninpeople’slivesforthemt

beinterrupted.Americaisanover‐communicatedsociety

andthereinliestheproblem.Eventhoughmorebusiness

areusingdirect‐mail,itisactuallylesseffec1ve.Direct‐misavic1mofitsownsuccess.Butwhendirect‐mailworks

–it’sunbeatable!Whenyoufindtherightformulaforyo

specificneeds,itcanbemagic.

Letthemagicofhigh‐impactdirect‐mailworkforyouby

genera1ngacon1nuousflowofcostefficientleadswhich

canradicallymaximizeyourmonthlyfundingvolume.The

followingaresomestrategiesandconceptsyoushould

employtomakeyourdirect‐mailmarke1ngsuccessful.

The Reverse Mortgage Marketing Plan

Tom Emmerson



Dec 08 / Jan 09

U6lizeProfessionalSupport

Directmaillookseasyenough.Youprintoutyourle:er

alongwithmailingindiciaonyourenvelope;getyourtrays

&tagsandyou’rereadytogo,right?WRONG!Direct‐mail

shouldNEVERbeado‐it‐yourselfac1vity!Withoutthe

professionalservicesofadirect‐mailcompany,yourunthe

riskoflosingvaluable1meandmoneybytryingtotackletheprojectyourself.Today,efficient,accurateanddeliverable

direct‐mailrequiresup‐to‐the‐minuteknowledgeofmailing

costs,listhygiene,properformats,automa1ondiscounts,

carrierroutes,barcodes…thelistgoesonandon.

Direct‐mailisasciencethatprofessionalmailcompanies

workwitheveryday.Youshouldnotassumethatyoucando

whattheydowithequalexper1se.Theydothemostgood

forthoseclientswhoputtheirtrustinthemandwhoturnto

themasdirect‐mailexperts.

Whydivertyourselffromwhatyoudobestinyourbusinesstohandlethecountlessdetailsinvolvedingengyourmail

campaigntothepostofficewhensupportisonlyaphone

callaway?

ThereareseveralcostsassociatedwithDirectmail,butm

surenottofocusonlyonwhatyouhavetospend;alsolo

atthepoten1aldollarsyoucanearnonyourinvestment.

Acarefullyplannedandexecuteddirectmailprogramcan

meanasignificantresponsefrompoten1alcustomers.Th

increasedresponsewilltranslateintosalesandprofits.So

insteadofasking“howmuchwillthismailingcost?”The

primaryconsidera1onreallyoughttobetheresults.

Lookatthelevelofsophis1ca1onofthemailthatcomes

yourhome–andoffice–onadailybasis.High‐qualitym

getsyoura:en1on,anda:rac1nga:en1onmeansgen

yourmessageacross.Youdon’thavetoadopta“sky’sth

limit”atude.However,ifyouarewillingtospendjusta

li:lemoreonabe:erdesignandcopy,yourabilitya:rac

moreprospectsarelikelytoimprove.Ifyouarewillingto

investinaslightlybe:ermailinglist,youmayreachsome

keyprospectsyoumightotherwisehavemissed.

Soremember,don’tfocusonthecostofthemailing.Instead,lookatthecostinrela1ontotheincreasedresult

youcanachievebyinves1ngali:lemore.

THERE'S A BETTER WAY




ConsistentMailingProvidesConsistentResponse

Everno1cehowfewresponsesyougetonaweeklybasis

whenyoudon’tmailanything?Sillyques1on,Iknow.Buta

companythatdoesmailcangenerateincredibleresponse.

Manycompanies,however,donotseethiscauseandeffect

rela1onship.SohereistheresultIfyoumaileveryday,youarelikelytoreceiveresponseseveryday.Likewise,

ifyoumaileveryweekormonth–youaremorelikelyto

getresponsesweekly/monthly.It’sacycleyoucreate&

control!

Watchoutfortheinevitablepiall–gengsidetracked!For

example,whenbusinessisbooming,thereisthetempta1on

tostopmailing.Youaresowrappedupinfollowingupand

closingthedealsthatdirect‐

mailcanfallbythewayside.So,

whathappenswhenyouhave

completedyourfollowupanddealclosings?Ifyouhaven’t

triedtogeneratenewleads,

nonewillbecomingin,andno

newleadsequalsnonewsales.

Throughaconsistentmailing

program,eachleadarrivesas

needed,andwillhelpminimize

thepeaksandvalleysinyour

salesac1vi1es.Consistency,

whetherthatmeansmailingweeklyormonthlyforyou,along

withthesalesthatgowithit,workstowardsdevelopingand

maintainingaconsistentmailingschedule.Addi1onalyusing

aprofessionaldirect‐mailcompanycanmakethishappenfor

youalmosteffortlessly.Theycancoordinateyourmailings

basedonyourrequirements.Theywillmakeithappenwith

li:leofyour1meoreffortneededtodoso.

ElementsofDirect‐MailSuccess

Therearethreemainelementsinvolvedindirect‐mail

success.Mailingdatalists,theoutsidepackage(envelope)andtheinsidecrea1ve.Eachoftheseplayanimportant

role,butthelistis60%‐70%ofthesuccessofanymailing

campaign.

Whenmailing–remembertotargetprospects–not

suspects!ImportantselectsforaReverseMortgagelistare

easytorememberage(62andup),homeowner,homevalue

&creditworthiness.Ithasbeenfoundthroughtes1ngthat

thoseprospectswithafewcreditderogatoriesarethose

withthegreatestneedforaReverseMortgage.

Nextistheenvelope,choosingtherightpackagetodelive

yourmessageiscri1cal.Youhaveapproximately3second

tomakeitintothe“keep”pile.Americanssorttheirmail

overthetrashcan!Makesureyouchooseapackagethat

doesn’tgetsenttothegarbageheap!Somehelpfulhints

tomakeitintothekeeperpilearetousedifferentcolorenvelopes–somethingthatwillstandoutagainsttherest

ofthebillsandmailers.Second,usehard‐hingcopywh

makingitshortandsweetandmakingitbeneficialtothe

seniorconsumer.Remember,thisisaboutthem–notyo

Onceyouwintheba:leandyourenvelopeisopened–h

agreatmailerinsideforthemtoread!Whendeveloping

yourle:ercopy–remember,therearethreewordsthat

aremostimportantindirect‐

mailcopy.ThefirstisYOU.

Thisallowsyouanopportuni

toappearcloseandin1matewithyourreader.Youmight

besurprisedhowmanymore

1meswordslikewe,us,orou

appearincopy,ratherthany

Byusingthesewords,yoush

a:en1onawayfromtheread

needstoyoursasaseller.

However,byusingthewordy

themessageisgeareddirectl

towardyourprospect,andyo

reassurethemthattheyaretimportantprospectyouhave

andthatyouunderstandtheirneeds,wants,anddesires.

Thesecondmoreimportantwordu1lizedindirect‐mail

isFREE.Freeimpliesthegreatestpossiblevalue,over

andabovethepriceofthemerchandise.Freeimpliesan

opennessthatnootherwordconveys.Morethananyot

word,freeinvitesyourprospecttolookatyourproduct,

serviceorofferwithoutmakingacommitment.Freeisa

opportunityforyoutoreachaprospectwho,byrespond

toyourfreeoffer,islabelinghimselfasinterestedinyoua

yourproductorservice.

Whatdoesfreecostyou?Itmightcostnothing,because

every1meyougivesomethingawayfree,yougetsometh

inreturn–anopportunitytopresentyourstory,andthat

movesyouclosertowardyourgoal–tosell.

“Whatdoesfreecostyou?Itmightcostnothing,becauseevery2me

yougivesomethingawayfree,

yougetsomethinginreturn–an

opportunitytopresentyourstory,

andthatmovesyouclosertoward

yourgoal–tosell.”




Thethirdmostimportantwordindirect‐mailisNEW.Ina

societylikeoursthatisenviousofanythingandeverything

new,isn’titstrangethatwerarelyseeanewwayof

expressingthatwhichisnew?Youcannotfindawordin

theEnglishlanguagethatismorestraighorwardorconcise

toconveytheessenceofnew.Whenyouadver1seanew

productorservice,youareofferingyourcustomerthe

chancetobethefirstathavingit,oryouprovidethemwiththeopportunitytodosomethingdifferentandexci1ng.

Peoplesimplylikethefeelingofnew.

Thesethreewordswillneverlosetheireffec1veness.Be

suretokeeptheseinmindwhendevelopingyourdirect‐mail

copy.

Direct‐MailPackages

Nowthatyouknowtheimportanceofdirect‐mail,howit

worksandimportanthintstodevelopingyourownpackage

–letmeshareafewpackageop1onsyoushouldlookinto

foryournextcampaignthatyieldthebestresultsamongthe

seniorpopula1on.

Thefirstop1onistheLeadGenera1onPackage.Thisis

themostbasicofthepieces.Thispackageconsistsofthe

le:erandacalltoac1onbytheprospecttoeithercallyou

formoreinforma1onorsetupanappointment.Another

possibleop1oninthistypeofmaileristoinsertabusiness

returncardfortheprospecttocompleteandmailbackto

youformoreinforma1on.Whilethismailingpackageis

effec1ve,itdoesyieldlowerresponsesthantheothertwoI

willsharewithyou.Youcanexpecttoaveragea.5%‐.5%responserateonthispackage.

Thesecondop1onisthetearoffsheet.Thesepackages

areeyecatchingfromtheenvelope!Thereare5vantage

pointswhendoingatearsheetmailing.First–theseare

plainwhiteenvelopeswithnoreturnaddress.Recipients

aren’tcomfortablethrowingoutapieceofmailwithout

knowingwhosentit,andthecuriositydrawstheminside

yourenvelope–overcomingthebigobstacle!Second–the

recipient’snameandaddresswillbehandwri:enonthe

envelopes.Thereisnouseoflabelsorbarcodesonyour

mailer.Third–alivefirst‐classstampisplacedonthemailer.Savvyrecipientsknowthatbulkorpresortedstampssignal

unwantedsolicita1ons.Fourth–yourtearsheetinsidethe

envelopeisacustomeradver1sementforyouandyour

product.Itwilllookasthoughitweretornfromthepages

ofapopularmagazineornewspaper.Totherecipient,itwill

appearasifsomeonehasgonetothetroubleofpersonally

tearingoutyouradandsendingittohimorher.Your

messageMUSTbeimportantifsomeonehasgonetoall

thattrouble.Thetearsheetallowsyoutoconveyasmuch

informa1onaboutyourproductorserviceasyouwish.T

fi`handfinalvantagepoint–ahandwri:enpersonalized

noteplacedonayellows1ckynoteanda:achedtoyour

Thisisyourcalltoac1on!Agreat1pasignatureorini1

includedonyournotecanbeagreatwaytokeepyourad

yourprospect’shand.Theywillreadyouradandponder

wonderwhosentthistome?”

Seminarpackagesarethelastop1onformailers.Thesea

idealtouseintheseniorcommunityasthishelpsyoubu

trustwithyourprospects.Importantpointersofasemin

aretoprovideamealinacomfortablediningatmosphere

whileeduca1ngseniorsonReverseMortgageandschedu

anappointmentforfollowup.Thisisoneofthebestdire

mailtoolstouse.

Inyourdirect‐mailcampaign,seniorsandtheirfriendsare

invitedtoa:endafreedinneratalocalrestaurant.Once

there,giveashorttalkabouthowReverseMortgageswo

andallowforaques1onandanswersession.A`erward,theyenjoyacomplimentarydinnerwiththeirfriends,wh

youhaveachancetomeetandtalkwithpoten1alclients

setuplaterappointments.Thistypeofpackageallowsyo

tobuildcredibilityinyourcommunityandgenerateleads

youweretomailaseminarpackageonceamonth,youc

expecttogenerate00newprospectsinthatmonth.Do

overa2monthperiod–thatis,200prospectsinsemin

leadsinperyear!

BuildingYourDataBase

A`erbuildingyourdatabase,youshouldputinplaceamonthlydripcampaign.Adripcampaignconsistsofmail

yourprospectsandclientsonamonthlybasis.Havingad

campaigninplaceshowsyouarestableandtrustworthy;

prospectyoumailtoinJanuarymaynothaveanyinterest

inaReverseMortgage,butmaybeinJuneorJuly,thatsam

prospectwillfindthemselvesinneedandifyouaremaili

monthly‐yourmailerwillhitatjusttheright1meandm

theneedofthissenior.

Ihopeyouwillputthisinforma1ontouseandu1lizethes

techniquesinyournextdirect‐mailcampaign.Ifyouare

lookingtodirect‐mailforthefirst1me,orhavebeentryintotacklecampaignsonyourown–givemeacalltoday.

Mygoalistomakeyourcampaignasprofitableforyouas

possible.Icanprovideyouthepiecesandthetoolstoma

thathappen.Iwillbehappytoshowyousamples,provid

youcountsandshowyoujusthoweasyitistoexecutea

ReverseMortgagecampaignquicklyandeasilybyusinga

professionalmailcompany.Bestoflucktoyouinthecom

NewYear!




Asconsumersofinforma1on,weareallaccustomedtoseeing

year‐endreviewsonawholerangeofsubjectseachDecember.

Asthistumultuousyearwithinthefinancialsectordrawsto

aclose,itisnodifferent.Eventhoughthereversemortgage

industryhasweatheredthestormquitewell,therehave

nonethelessbeenmanysignificantchanges,asbesthighlighted

inouryear‐endreviewof2008MortgageeLe:ersissuedby

FederalHousingAdministra1on(FHA)concerningitsHome

EquityConversionMortgage(orHECM)program.

HECMsaretheFHA‐insuredreversemortgageloanprogram.

HECMloansareauthorizedbySec1on255oftheNa1onal

HousingAct(orNHA),andareprimarilygovernedbytherules

andregula1onsoftheFHA,including,innosmallmeasure,

MortgageeLe:ers.Asthisar1clewenttopress,FHAhadissued

9le:ersincalendaryear2008concerningitsHECMprogram,a

recordnumberreflec1ngtherecordpaceofchangewithinour

industry.

ML2008–08

Star1ngwithabanginMarch2008,FHApublishedML

2008‐08,whichclarifiedtheabilityofFHA‐approved

mortgageestoofferfixedinterestrateHECMloanstoseniorapplicants.WhileFHA‐approvedmortgagees

havealwaysbeenpermi:edtooriginatefixed

interestrateHECMloans,lackofclarity

concerningalender’sabilitytostructure

aHECMloanthatmi1gatedinterest

raterisk(ortheriskofa

mismatchbetweenthe

lender’scostoffunds

andthefixednote

ratefor

advancesoccurringinthefuture)resultedinveryfewofthes

loanshavingbeenoriginated.

ML2008‐08,whileprovidinglong‐awaitedguidanceforlend

toencouragetheofferingoffixed‐rateHECMs,hasbeenam

blessing,providingsomeclarifica1onbutfailingtoaddressa

numberofcri1calissues.Importantly,ML2008‐08clarifiedt

fixedrateHECMsmaybestructuredasopen‐endorclosed‐e

creditandauthorizedlendersorigina1ngfixedrateHECMsto

makethenecessaryandappropriatemodifica1onstotheloa

documentstoconformtoML2008‐08andensurecomplianc

withFHA’srequirementsandapplicablelaws.PerML2008‐0

lendersmustalsoensuretheirfixedrateHECMloandocume

(i.e.,theHECMfirstandsecondnotesandtheHECMLoan

Agreement)clearlyindicatewhethertheloanisstructureda

openofclosed‐endcredit.

PursuanttoML2008‐08,lendersmustbeabletoofferallof

thestandardHECMpaymentplans(i.e.,theterm,

tenure,lineofcredit,andmodifiedtermor

tenureplans)toseniorborrowersobtain

afixedrateHECM.Unfortunately,FHA

didnotexpresslyprovidethatlender

maychargedifferentfixedinterestrabasedupontheborrower’schoiceo

paymentplan.Inaddi1on,senio

borrowersmustbeabletochan

paymentplanop1onsduringth

termofthefixedrateHECM,

aslongastheborrower’snet

principall

rema

YEAR FOR THE RECORD BOOKSA Year-End Review of

2008 FHA Mortgagee Letters Weiner Brodsky Sidman Kider



Dec 08 / Jan 09

available.ThemonthlyservicingfeeonafixedrateHECMmay

notexceed$30andthechargeforapaymentplanchangeis

limitedto$20.

Finally,ML2008‐08mandatedthattheexpectedaverage

mortgageinterestrateusedtocalculatetheseniorapplicant’s

PrincipalLimitmustbethesameastheHECMnoterateof

interest.Theexpectedaverageinterestrateandthenoterate

mustbesetsimultaneously.Note,also,thatalthoughFHA‐approvedmortgageesarepermi:edtolockthemortgage

interestrateonfixedrateHECMtransac1ons,FHArulesand

guidanceinothermortgageele:ersprohibitlendersfrom

chargingafeeforlockingtheinterestrate.

DespitetheguidanceprovidedinML2008‐08,thereremaina

numberofchallengesforlendersofferingfixed‐rateHECMs.

Someoftheissuesincludethetreatmentunderafixedrate

HECMofunusedfundsremainingfromarepairsetasidesetup

atclosingandthetreatmentoffundsthatmaybecomeavailable

totheborrowera`ertheclosingofafixedrateHECMduetothe

growthinthenetprincipallimit.Lendersoffering,orinterestedinoffering,fixed‐rateHECMsshouldconsultwiththeirlegal

counseltoevaluatetheseissues.

ML2008‐12

ML2008‐2isanother,inalonglineofmortgageele:ers,that

addresscounseling.Aseniora:endingacounseling

sessionwithaHUD‐approvedcounselorisapre‐requisiteto

thefinalapplica1onforaHECMloan.Thus,counselorsserve

“gatekeeper”func1onforthereversemortgageindustry,and

mandatoryHECMcounselingmustoccurpriortothe“point

sale”ofaHECMloan.

Amongotherthings,ML2008‐2implementedrulespublish

byHUDinSeptemberof2007asarevisionofHUD’sbroader

rulesoncounseling.Theruleprovidedthatcounselingagenmaychargeafeetoaprospec1veborroweraslongasthefe

isreasonableandcustomary,anddoesnotcreateafinancial

hardshipfortheborrower.ML2008‐2makesclearthat

counselingagenciesmustinformborrowersofthefeestruct

priortocounseling,andthataborrowercannotbeturnedaw

duetotheborrower’sinabilitytopayforcounseling.HUD

determinedthatareasonablefeeforcounselingcannotexce

$25,butthatthefeemustbenotbeexcessiveandmustbe

commensuratewiththeservicesactuallyperformed.Payme

forcounselingmustbedisclosedinthe800seriesontheHU

ML2008‐24

Inthefirstmortgageele:erissuedtoprovideguidanceonn

requirementsapplicabletoHECMloansandFHA‐approved

mortgageesundertheHousingandEconomicRecoveryActo

2008(orHERA),ML2008‐24addressedtheprohibi1onagain

thesellingofotherfinancialorinsuranceproductsinconnec

withaHECMloan.ML2008‐24alsoimplemented




therequirementundertheHERAthatallpar1espar1cipa1ngin

theorigina1onofaHECMbeapprovedbyHUD.

SparkedbyahearingonreversemortgagesbytheSenate

Subcommi:eeonAginginDecember2007,highligh1ngthe

plightofseniorssoldnon‐suitableannuityproductsa`er

procuringareversemortgage,HERAaddednewSec1on

255(n)()totheNHA,whichprovidesabroadprohibi1onon

crosssalesofotherfinancialorinsuranceproductstoHECMborrowers.Specifically,aHECMoriginatororanyotherparty

thatpar1cipatesintheorigina1onofanFHA‐insuredHECM

shall()notpar1cipatein,orbeassociatedwith,oremploy

anypartythatpar1cipatesinorisassociatedwith,anyother

financialorinsuranceac1vity;or(2)demonstratetoHUD

thatthemortgageeorotherpartymaintains,orwillmaintain,

firewallsandothersafeguardsdesignedtoensurethat(i)

individualspar1cipa1ngintheorigina1onofaHECMhaveno

involvementwith,orincen1vetoprovidethemortgagorwith,

anyotherfinancialorinsuranceproduct;and(ii)themortgagor

shallnotberequired,directlyorindirectly,asacondi1onof

obtainingaHECM,topurchaseanyotherfinancialorinsuranceproduct.

ML2008‐24announcedthatFHAwillissueregula1ons

concerningthiscross‐sellprohibi1on,andwillseekcomments

fromthepublic,includingconsumergroups,industry

par1cipantsandotherinterestedpar1esthroughappropriate

administra1vemeans.Thepurposeofsuchcommentsisto

assisttheFHAindeterminingwhatrequirementsmayalread

beinexistencetoaddressconsumerprotec1onsunderSec1

255(n)().Forexample,ML2008‐24notedtheremaybe

staterequirementsinexistencethatalreadygoverninsuranc

products.

ML2008‐24alsoadvisedthatintheinterim,un1ltheFHAiss

moredefini1veguidance,mortgagees()mustnotcondi1o

aHECMonthepurchaseofanyotherfinancialorinsuranceproducts,and(2)shouldstrivetoestablish,consistentwith

theHERA,firewallsandothersafeguardstoensurethereisn

unduepressureorappearanceofpressureforamortgagort

purchaseanotherproductoftheoriginatorortheoriginator

company.

NotethattheHERAalsoaddedanewprovisiononan1‐

tying.ThenewSec1on255(o)oftheNHAprovidesthata

seniorborrowermaynotberequiredtopurchaseinsurance,

anannuity,orothersimilarproductsinordertoobtaina

HECMloan.Thisrestric1ondoesnotapplytocertaintypes

ofinsurancenormallyrequiredwithaHECMloan,suchas1tleinsurance,floodinsuranceandhomeowners’orcasualty

insurance.

TheHERAalsoaddedSec1on255(n)(2)totheNHA,requiring

par1esthatpar1cipateintheorigina1onofFHA‐insuredHEC

tobeapprovedbyHUD.Thisrequirementeffec1velyelimina

thesocalled“HECMAdvisor”programunderwhichanon‐



Dec 08 / Jan 09

FHA‐approveden1tycouldprovidecertainlimitedservicestoa

borrowerinconnec1onwithaHECMloaninreturnforalimited

brokerfee.

AccordingtoML2008‐24,beginningwithFHAcasenumbers

assignedonoraèrOctober,2008,onlyFHA‐approved

mortgageesmaypar1cipateinandbecompensatedforthe

origina1onofFHA‐insuredHECMloans.ML2008‐24explained

thattheorigina1onofaHECMloanmustbeperformedbyFHAapproveden11esincluding()aFHA‐approvedloan

correspondentandsponsor;(2)aFHAapprovedmortgagee

throughitsretailchannel;or(3)aFHA‐approvedmortgagee

workingwithanotherFHA‐approvedmortgagee.

NotethatFHA’searlierMortgageeLe:er(ML2008‐4,which

isnotseparatelydiscussedinthisar1cle),providedguidance

onhowanon‐FHA‐approveden1ty(i.e.,a“HECMAdvisor”)

couldpar1cipate,andbecompensated,inconnec1onwiththe

origina1onofHECMloans.InML2008‐24,theFHArescinded

ML2008‐4,effec1veOctober,2008.HECMAdvisor

programs,previouslycommonwithintheindustry,arenolongerpermi:ed.

ML2008‐28

Next,onSeptember29,2008,theFHAissuedML2008‐28,

addressingtheprohibi1ononlender‐paidHECMcounseling.

TheHERAamendedcounselingrequirementsforprospec1ve

HECMloanapplicantstopromotetheindependenceofthe

counselingfunc1onbyprohibi1nganypartyinvolvedinthe

origina1onofaHECMfromdirectlyorindirectlypayingforor

providingfundingtothecounselingagency.ThroughML2008‐

28,theFHAformallyimplementedthisprohibi1on.

LenderscannolongerpayHUD‐approvedcounselingagencies,

directlyorindirectly,forcounselingservicesthrougheither

alump‐sumpaymentoronacase‐by‐casebasis.ML2008‐

28reiteratedthatprospec1veHECMborrowersmustreceive

adequatecounselingfromanindependentthirdpartythatis

noteitherdirectlyorindirectlyassociatedorcompensatedby

apartyinvolvedin()origina1ngorservicingtheHECM,(2)

fundingtheHECMloan,or(3)thesaleofannui1es,investments,

long‐termcareinsurance,oranyothertypeoffinancialor

insuranceproduct.

ML2008‐28alsoprovidedexamplesofprohibitedindirectlender

fundingofcounseling,includingalenderfunnelingpaymentfor

HECMcounselingthroughanonprofit,founda1on,associa1on

oranyotheren1tyororganiza1onthatisabranchof,affiliated

withorassociatedwiththelender.

ML2008‐33

OnOctober20,2008,theFHAissuedML2008‐33,implemen1ng

amendmentstotheNa1onalHousingActmandatedbyHERA

andauthorizingHECMforPurchasetransac1ons.Thenew

HECMforPurchaseprogramwillbeavailableforHECMswith

FHAcasenumbersassignedonoraèrJanuary,2009.

ML2008‐33clarifiesthatseniorborrowersmustmakeadow

paymentsufficienttosa1sfythedifferencebetweentheHEC

principallimitandthesalespriceforthepurchasedproperty

plusanyHECMloanrelatedfeesthatarenotfinancedor

otherwiseoffsetbyotherallowableFHAfundingsources.

Seniorswilleitherneedtousecashonhandorcashfromthe

saleofotherassetsforthisdownpayment.Asisthecasew

HECMrefinancetransac1ons,seniorsmaycon1nuetofinanc

closingcosts,orelecttopaythemoutofpocket.

AsexplainedinML2008‐33,seniorsobtainingaHECMfor

Purchasemaynotobtainabridgeloan(orsocalled“gap

financing”)oremployotherinterimfinancingtechniquesto

meetthedownpaymentrequirementsand/orpayforclosin

costsinconnec1onwithHECMforPurchasetransac1ons.T

restric1onincludessubordinateliens,personalloans,cash

withdrawalsfromcreditcards,sellerfinancingandanyother

lendingcommitmentsthatcannotbesa1sfiedatclosing.

Lendersarerequiredtoverifythesourceofallfundspriorto

closing.

ML2008‐33alsopointsoutthatpurchasemoneymortgage

transac1onsgenerallyarenotrescindableunderthefederal

Truth‐in‐LendingAct(andRegula1onZ).However,lendersar

stronglyencouragedtoconsultwiththeircounseltoassure

compliancewithapplicableFederalorStatelaws.

ML2008‐33didnotprovidespecificguidanceconcerning

theloandocumentsfortheHECMforPurchaseprogram.

However,lendersshouldconsiderreviewingtheirstandard

HECMdocumentspriortousingtheminHECMforPurchase

transac1ons.Forinstance,theloandocumentsshouldreflec

thatseniorsmustoccupythepropertywithin60daysfromtdateofclosing,andalsomustcomplywithanystate‐specific

requirementsforpurchase‐moneytransac1ons.

Similartoatradi1onalHECM,aHECMforPurchasemustbe

securedbyrealestateheldinfeesimple,oronaleasehold

underaleasefornotlessthan99yearswhichisrenewable,

orunderaleasehavingaremainingperiodofnotlessthan5

yearsbeyondthedateofthe00thbirthdayoftheyoungest

mortgagor.

CertainpropertytypesareineligibleforFHAinsurance

undertheHECMforPurchaseprogram,including(i)co‐

ops;(ii)newlyconstructedproper1eswhereacer1ficateof

occupancyoritsequivalenthasnotbeenissued;(iii)exis1ng

manufacturedhomesbuiltbeforeJune5,976;and(iv)

exis1ngmanufacturedhomesbuiltaèrJune5,976thatf

toconformtotheManufacturedHomeConstruc1onSafety

Standards.

Lendersarerequiredtoensurethatanyconstruc1onloan

financingforthepropertyissa1sfiedandtheHECMlienswil



Dec 08 / Jan 09

nutshell,ML2008‐38definedthatnon‐recourse,inapplica1on

toaHECMloan,meanssimplythatiftheborrower(or

estate)doesnotpaythefullmortgagebalancewhendue,the

mortgagee’sremedyislimitedtoforeclosureandtheborrower

willnotbepersonallyliableforanydeficiencyresul1ngfromthe

foreclosure.Non‐recoursedoesnotmeanthattheborrower,

ortheborrower’sestate,ifitchoosestopay‐offtheHECM

obliga1on,maydosobypayingthelesserofthefairmarket

valueofthepropertyorthefullindebtedness.

Iftheborrowerortheborrower’sheirsorestatedonot

wishtokeeptheproperty,theymaysellthepropertyforthe

lesserofthefullmortgagebalanceor95%oftheproperty’s

appraisedvalue.ML2008‐38explainedthatthesaleofthe

propertyshouldbeanarm’slengthtransac1on.Anarm’slength

transac1onischaracterizedinML2008‐38asmee1ngthe

followingrequirements()theabsenceofarela1onbetween

thebuyerandseller;(2)asellingpriceandothercondi1onsthat

wouldprevailinanopenmarketenvironment;(3)transac1on

costspaidbythesellerthatareconsideredbothreasonableand

customaryforthemarketinwhichthepropertyislocated;and(4)theadherencetoethicalstandardsofconductbyallpar1es

involvedintheHECMshortsaletransac1on,includingthe

borrowers(ortheestate),mortgageesandappraisers.

Ifthenumberandcomplexityofthemortgageele:ersissue

byFHAisameasureofchangewithinourindustry,thereisn

doubtthat2008hasbeenanhistoricyear.HECMoriginators

andlendersareencouragedtoworkwiththeirinternal

teamsandappropriatesubjectma:erexpertstoensurethat

thesechangesarebothfullyunderstoodandanynecessary

modifica1onstosystems,processes,policiesandprocedures

implemented.

Asanindustry,itisourcollec1veresponsibilitytoensuretha

theseniorsweserveareprovidedaposi1veexperienceand

affordedallofthebenefitsandconsumerprotec1onfeature

mandatedbyFHAundertheHECMprogram.

Becauseofthegeneralityofthisar&cle,theinforma&on

providedhereinmaynotbeapplicableinallsitua&onsand

shouldnotbeacteduponwithoutspecificlegaladvicebased

par&cularsitua&ons.

ByJoelSchiffmanandFedKamensky,ofthelawfirmofWein

BrodskySidmanKiderPC.ThelawfirmservesasGeneral

CounseloftheNa&onalReverseMortgageLendersAssocia&o

andascounselandadvisortoreversemortgagelendersand

otherindustrypar&cipantsthroughoutthena&on.Thelawfi

hasofficesinWashington,DC,NewportBeachandHouston.

Addi&onalinforma&onmaybefoundatwww.wbsk.comorby

telephoneat202.628.2000.Messrs.SchiffmanandKamensk

[email protected]@wb

com.




AA

Guide to Following

Up Valerie VanBooven

Impact is not created by big budgets; it is created by innovative marketing approaches....



Dec 08 / Jan 09

Hiandhappycomingnewyear!2009willbespectacular

forthosewhotakethe1metoreallyunderstandwhat’s

requiredfora:rac1ngandmaintainingnewclients.It’s1me

toshi`gearsandmoveintosomenewstrategiesthatspice

upyourmarke1ngplanswithoutcos1ngabundle.

Thisar1clewillillustratestepbysteptheblueprintfor

respondingtoleadsthatcometoyouviaemail,internetleadsprograms,yourwebsite,oranyonlinemethod.

Gengleadstocometoyouviatheinternetisacompletely

differentconversa1onthanhowyouRESPONDtoleadsthat

comeyourway.

Ifyouareaseniorserviceprovider,thisblueprintgivesyou

thetoolstoimplementinyourownbusinessthatwillmake

abigdifferenceinwhathappenstothepeople/caregivers/

seniorswhoinquireaboutyourservices.

Forthepurposesofsimplicity,IamgoingtouseABC

ReverseMortgagesasmyexample.It’snotrocketscience,butasimplefollow‐upplanthatkeepsYOUinfrontofyour

prospectsandpoten1alfutureclientsforseveralmonths.

Follow‐upisourbiggestdownfall.Wouldn’tyouagree?As

businessownersweallknowthattherearethoseprospects

whofallthroughthecracks,onlytobecontactedbyour

compe11onjustattheright1me,andsuddenlyoutofreach

forus.

It’s1metomakethatsitua1onathingofthepastandfollow‐

upwitheverysingleinquiryforaslongasittakes.Howlongisthat?Un1ltheyasktonotbecontacted.Simple.You

follow‐upinawonderfullyposi1veandeduca1onalwayun1l

you’reaskedtostopeitherverbally,byemail,orle:er,etc.

Didyouknowthatwhenacoupledecidesto“think”about

sellingorbuyinganewhome,ito`entakesthemafull6‐8

monthstoREALLYmakethefinaldecision!?

InsomecasesyourprospectsneedhelpRIGHTNOW,and

other1mes,theyareinves1ga1ngtheirop1ons‐and“geng

ready”“justincase”anaginglovedonemightneedhelp

atsomepoint.(Transla1onTheiraginglovedoneprobablyneededhelp6monthsago,but6moremonthswillpass

beforethereisaneventthatcatapultsthefamilyintotrue

crisis‐andinneedofyour,oryourcompe1torsservices).

Doyourselfafavorandfromnowonmakesurethatforallof

thoseclientswhoare“justlooking”,“educa1ngthemselves

aboutop1ons”,etc‐YOUwillbetheagency,individual,or

companyofchoicewhenthe1mecomes.

Inotherwords,makesurethateveryfamilyyoutouchkn

thattheywouldbeabsolutelycrazytodobusinesswith

anyoneelsebutyou!Iwon’tgointoanin‐depthanalysis

ofWHYyoushouldusetheitemsIrecommendhere,that

anotherdiscussionen1rely.However,eachpieceofthe

blueprintisrecommendedanddesignedtoSETYOUAPA

fromtheCOMPETITION.

Step1:Assoonasaleadarrivesinyouremailboxoron

yourphoneline:Callimmediatelyasanintroduc1on,ans

ques1ons,andconfirmcontactinforma1on.

Exhibit A: Call Script 1

HiMrs.JonesthisisValeriefromABCReverseMortgage

Wejustreceivedanoteonourcomputersystemthatyo

havesomeques&onsaboutreversemortgagesforyour

father/mother.

Whatkindofques&onscanIanswerforyourightnow?

ummI’mnotsure…..

WehaveafreeDVD/audioCD(orweno&cedthatyou

haverequestedourfreeDVD/audioCD)called:YourMo

Cri&calAsset.(Note:Imadethisnameuponthefly,use

yourown.)

WoulditbealrightifImailedthatouttoyourightnow,

alongwithourbrochure?

Yes

<Gathermailinginforma&onifyoudon’talreadyhavei

Okthen,Iwillbecallingyoubackinabout4daystosee

youhaveanyques&onsaerviewingtheDVD/listening

theaudioCD.

Aremorningsoraernoonsbeerforaphonecall?

Mornings

OkMrs.Jones,I’lltalktoyouattheendoftheweek,an

I’llbesuretocallinthemorning.

Ifyouhaveques&onsbeforethat&me,don’thesitateto

callmerightaway.IfyouhaveapenandpaperI’llgive

youmyphonenumber.888‐888‐8888.

ThanksMrs.Jones,andI’lltalktoyousoon.




“

Step2:Emailimmediatelya`erphonecall‐“THANK

YOU”anda:acha“FREEREPORT”(no1ceIdidnotcallit

abrochure).YourFREEREPORTshouldcomplementthe

contentsofyourDVDorAUDIOCD.Yes,Imen1onedDVDor

AudioCD…youneedoneofthese.

Exhibit B: Email 1- modify depending on

your discussion on the phone. Dear Mrs. Jones,

My name is Valerie VanBooven RN BSN, from ABCReverse Mortgages.

We just received a note on our computer systemthat you have some questions about a reversemortgage for your father/mother.

(Or- It was a pleasure speaking with you today regarding the care needs for your mother/father)

We will be sending you our new DVD/Audio CD: Your Most Critical Asset.

We believe that the information contained in this DVD/ Audio CD will give you information and tips on choosing a good lender, and will help you makeinformed decisions moving forward.

I will call you to follow up in a few days and seeif you have any questions. In the meantime, look for your package in the mail from us.

If you would like to view/listen to thematerials online right now, you can visit www.ReverseMortgageNation.com/valerievanbooven

If you have questions before that time, don’thesitate to call me right away.

888-888-8888

Warmest Regards,Valerie VanBooven RN BSN

P.S. Attached is a REPORT that our clients havefound extremely helpful in understanding how obtain a reverse mortgage.

Step3A:USPSMailHandaddressedenvelope.Envelope

shouldsay“TheInforma1onYouRequestedisEnclosed”

cangetacheaprubberstamp,orprint50labelsata1me

andusethemasneededforyourenvelope.Keepitsimple

Step3B:Insidetheenvelope‐thankyoule:ersimilartot

emailyouoriginallysent,andthefreereportyouoriginal

emailed.Also,sendaDVDorAUDIOCDthatsummarizesyourservicesin8‐0minutes.

Exhibit C: US Mail Letter 1- modify depending on your discussion on the phon

Dear Mrs. Jones,

My name is Valerie VanBooven RN BSN, from ABCReverse Mortgages.

Thank you for ordering your DVD/Audio CD: : YouMost Critical Asset.

(Or- It was a pleasure speaking with you today regarding the care needs for your mother/father)

We believe that the information contained in this DVD/ Audio CD will give you information and tips choosing a good home care provider, and will help you make informed decisions moving forward.

I will call you to follow up in a few days and seeif you have any questions. In the meantime, please

be sure to view this DVD. (listen to this audio CDIf you have questions, don’t hesitate to call meright away.

888-888-8888

Warmest Regards,Valerie VanBooven RN BSN

P.S. Attached is a REPORT that our clients have found extremely helpful in understandinghow obtain a reverse mortgage.

Do yourself a favor and from now on make sure that for all of thosthemselves about options’, etc- YOU will be the agency, individual, o



Dec 08 / Jan 09”

Ifyoudon’thaveaDVDoraudioCDthatyoucanhand•

outtoprospectsandreferralsources(orpreferably

both),youneedtogetonemadeYESTERDAY.TheDVD

shouldhaveacompellingandgutpunching1tlethat

makesthe“receiver”feelobligatedtowatchit.

Step4:Wait4daysformailtoarrive.

Step5:Followupphonecall.Didtheyreceivethe

informa1onyousent?Dotheyhaveanyques1ons?Didthey

watchyourDVDorlistentoyourCD?

Exhibit D: Script 2- modify depending onyour discussion on the phone and any other communication.

HiMrs.JonesthisisValeriefromABC.I’mfollowingupon

theDVD/AudioCDthatwemailedtoyouthisweek.Have

youhadachancetoreviewtheinforma&on?

Whatkindofques&onscanIanswerforyourightnow?

ummI’mnotsure…..

Wouldyouliketosetupanappointmenttomeetwithme

anddiscussyourcurrentsitua&on(regardingyourfather)‐

thereasonIaskisbecauseevenifourservicesaren’t

exactlywhatyouarelookingforrightnow,wemaybeable

topointyouintherightdirec&onforotherservicesinour

area.Thereisnochargefortheappointment.

Yes

Aremorningsoraernoonsbeerforyou?Wouldyou

preferTuesdayorThursday?

Ok,IwillseeyouonThursdayat10amatyourhome.

Ifyouhaveques&onsbeforethat&me,don’thesitateto

callmerightaway.IfyouhaveapenandpaperI’llgiveyou

myphonenumber.888‐888‐8888.

ThanksMrs.Jones,andI’llseeyousoon.

»

who are ‘just looking’, ‘educatingny of choice when the time comes.



Dec 08 / Jan 09

America’sRecommendedMailers,Inc.

800.992.2722

armleads.com

AppraiserLo

877.229.7799

appraiserlo`.com

Celink

57.32.9002

www.celink.com

Na&onalHousingCounselingAssocia&on

50.287.6085

learnreverse.org

NextGenera&onFinancialServices

888.973.8377

www.ngfs.net

OnTheLevel

800.909.0

onthelevelcontractors.com

ReverseMarketInsight,Inc.

949.429.0452rminsight.net

ReverseFortunes.com

866.592.2096

reversefortunes.com

ReverseMortgageAssocia&onfor

LoanOfficers

877.262.7656

remalo.org

ReverseVision

99.834.0070

reversevision.com

1stReverseFinancialServices,LLC

ASubsidiaryofWilmingtonSavings

FundSociety,FSB

877.574.000

streverse.com

director

Interna&onalDocumentServices

800.554.872

idsdoc.com

PremierReverseClosings

800.542.43

prclosings.com

WeinerBrodskySidmanKiderPC

202.628.2000

wbsk.com

AtareE.Agbamu,CRMS

62.203.9434

thinkreverse.com

DirectGroup

888.799.3959

dgmortgagemarke1ng.com

LoanWellAmericaInc.

877.700.0555

loanwellrm.com

MonteRose

800.56.0545

monterose.biz

ReverseMortgageDaily reversemortgagedaily.com

Ibis

800.566.5070

reversemortgagehomepage.com

OmniReverse800.628.5093

omnireverse.com




Bre:Varner‐LessonsLearnedfrom2008

the last word

WHY IT’S A

GREATTIME

TO START A

CAMPAIGN IN 2009

RR

www.reversereview.com

Magazine

the reverse review december 2008 january 2009

Documents