Why Internet MarkeƟng?
Gas, Food, Baseball, Apple Pie
and Chevrolet
“Forward Thinking in Reverse”
Keep Seniors At Home for Life!
What is a Loan Servicing Set-
Volume I, Number 3
David Cesario
Valerie VanBooven
Sam Collins
Gretchen Williams
• SoluƟon Today for DE UnderwriƟng
• Wall Street Prefers LIBOR HECM’s:
They will be kind to your clients!
• The BoƩom Line: MarkeƟng
Numbers That MaƩer
• The Seven Selling RealiƟes
• Scent of an Industry
Even in the age of the Internet you may not fully
understand the best way to use this as a marketing
tool. This concise article offers you a crash course
in Internet marketing.
In our ever changing economy, consider
these tips when marketing to your
Read about the best kept secret
opportunity for Veteran seniors.
Learn the best way to explain this
concept to your clients.
June 2008

1st Reverse Financial Services, LLC, a

1st Reverse Provides:

x CompleteTrainingProgramsfortheOrigination
x ProductsFromMultipleInvestors
x OutsourcedBackroomServicesAvailable
x PrivateLabeledLendingSolutions
x MarketingAssistanceandSupport
x AccesstoProprietaryTechnologyPlatforms
x Proprietary&JUMBOReverseMortgagePrograms
410 Quail Ridge Drive, Westmont, Illinois 60559
For lending professionals only and not intended for consumer
distribution. © 2008 - 1st Reverse Financial Services, LLC.
Experience 1st Reverse Experience 1st Reverse
“Concierge” Level Service and Support “Concierge” Level Service and Support
Cover Story
10 Keep Seniors At Home for
28 The Seven Selling RealiƟes
12 Wall Street Prefers LIBOR
HECM’s: They will be kind
to your clients!
15 What is a Loan Servicing Set-Aside?
Why Internet MarkeƟng?
24 The Bottom Line: Marketing
Numbers That Matter
31 Gas, Food, Baseball, Apple Pie and
Note From the Editor
The Last Word: Scent of an Industry
If you would like to
contribute an arƟcle for a
future issue, please email
your arƟcle for review to
by Valerie VanBooven
by David Cesario
by Sam Collins
by Monte Rose
by John Lunde
by Jerry Wagner
by Gretchen Williams
Volume I, Number 3
June 2008
Learn about the financial benefits
you can offer your Veteran seniors
and their spouses.
Understand what the loan servicing set-aside is
and how to effecƟvely explain this concept to
your clients.
Read about how and why the LIBOR
HECM may be a more beneficial
opƟon to offer your clients versus
the CMT.
Take a look at the industry factors which may be
leading to a deterioraƟon in markeƟng results and
learn how to overcome them.
As seniors begin to feel the recent economic
changes of rising food and gas prices, learn how
to adapt your markeƟng plans to fit their needs.
Learn the secrets behind turning a lead into a
successfully completed sale.
by David BancroŌ
the basics
Industry Snapshot
6 SoluƟon Today for DE
by Daniel DuplanƟs
Barbara Santner
With the recent increase in FHA
loans, read about the renewed need
for DE underwriters.
June 2008
Editor Aman Makkar
Production Manager Jason Westbrook
© 2008 The Reverse Review, LLC. All rights reserved. The Reverse Review, LLC is a California limited
liability company and is the publisher of The Reverse Review magazine. ReproducƟons or distribuƟon of
any materials obtained in the publicaƟon without wriƩen permission is expressly prohibited. The views,
claims and opinions expressed in arƟcle and adverƟsement herein are not necessarily those of The Reverse
Review, its employees, agents or directors. This publicaƟon and any references to products or services
are provided “as is” without any expressed or implied warranty or term of any kind. While effort is made
to ensure accuracy in the content of the informaƟon presented herein, The Reverse Review, LLC is not
responsible for any errors, misprints, or misinformaƟon. Any legal informaƟon contained herein is not to be
construed as legal advice and is provided for entertainment or educaƟonal purposes only.
Postmaster : Please send address changes to The Reverse Review, 10801 Thornmint, Ste 250, San Diego, CA
10801 Thornmint Rd
Suite 250
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Subscriptions and Editorial Content
phone : 858-217-5332
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Advertising Information
Rates, specificaƟons, and deadline informaƟon available.
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Printer The Ovid Bell Press, Inc.
Contributing Authors
Daniel Duplantis
Barbara Santner
Valerie VanBooven
Jerry Wagner
David Cesario
Gretchen Williams
John Lunde
Monte Rose
Sam Collins
David Bancroft
Copy & Design Editor Harpreet Makkar
June 2008
“Forward Thinking in Reverse”
Note From the Editor
How do we overcome sales objecƟons? How do we turn leads into sales? Or, beƩer
yet, how do we get those leads into our offi ce? Much of our June issue is about sales
and markeƟng. It seems that everyone has their own unique manner in which they
market and sell a reverse mortgage. Some work beƩer than others, but that’s how
we each aƩain our compeƟƟve advantage. One aspect of markeƟng where I’ve had
a tremendous amount of experience, but where most reverse mortgage companies
don’t tend to focus is search engine opƟmizaƟon (SEO).
Have you ever been asked, “Is your site opƟmized for Google” or “Have you done
any SEO”? Every company has a website. Every business card I receive and you hand
out has a website listed. A company website has minimal benefit if we can’t bring
traffi c or visitors there. Search engine opƟmizaƟon is one of the most cost effecƟve
methods of drawing traffi c to your website.
Search engine opƟmizaƟon, according to Wikipedia, is the process of improving the
volume and quality of traffi c to a web site from search engines via “natural” (“organic” or “algorithmic”) search
results for targeted keywords. Simply stated, it’s geƫ ng your website to show up in search results without paying
the search engines.
Why is it so important?
Majority of web traffi c is driven by the major search engines: Google, Yahoo, MSN, and If your site cannot
be found by these search engines, you’re missing out on sales leads your compeƟtor may be receiving. There are
seniors trying to learn about reverse mortgages, and your company sells them, however if they can’t find your
company you’re losing that potenƟal customer. It’s that simple. Whether your site provides content, services,
products, or informaƟon, search engines are a primary method of navigaƟon for almost all Internet users.
Content is Key!
Web content is very important for two reasons: SEO and generaƟng sales leads. One fact we all know about seniors
is they have Ɵme, and if they’re online, they like to read. Most of us cannot read a full page of text on a web page.
If there’s a phone number, we’ll pick up the phone, call, and let someone else explain what we could have read
online. Generally speaking, seniors tend to be paƟent people. They’ll read 10 pages on your website before they
pick up the phone and call you. So, make sure you have 10 pages for them to read. The more content you have on
your website, the beƩer the search engines understand your website, your company, and your product offering.
CreaƟng online content can be a cumbersome task, but it’s truly important.
Make the web your compeƟƟve advantage!
Many reverse mortgage companies focus heavily on direct mail, television adverƟsing, or radio spots, but few
opƟmize their websites for seniors online. This alone can be a compeƟƟve advantage, especially for smaller
organizaƟons that primarily focus on local clients. SEO is definitely easier when targeted towards a geographic area.
I can’t repeat this enough, if you’re selling reverse mortgages, make sure your clients can find you online. With the
number of new originators we’re seeing in this industry, you’re going to need a compeƟƟve advantage.
Search engine opƟmizaƟon does take some Ɵme. Results don’t come immediately, but once your site is opƟmized,
you’ll be receiving leads without any effort (and very liƩle cost)! Research SEO online (90% of the informaƟon on
SEO is available free online). Start on your quest for opƟmizaƟon today to set yourself apart in the future.
Thank you for taking the Ɵme to read this and I hope you enjoy our June issue of The Reverse Review.
Aman Makkar
June 2008
With the industry turning back to
the tried and true FHA loans, many in
the mortgage industry are becoming
aware that there is an alarming lack of
DE Underwriters. With the industry focus
being on the Alt A and subprime market
over the last few years, the training of
underwriters for the FHA market had
taken a back seat.
Going back a few years with
FHA only doing 2% of the mortgage
business and DE Underwriters being
more expensive to hire, the training
programs were minimized or in some
cases eliminated in favor of the more
popular convenƟonal loan products. The
current mortgage crisis brought back into focus the essenƟal
basics for the need of sound underwriƟng decisions which
includes the analysis of risk for both FHA and the lender.
The advent of the Automated UnderwriƟng System (AUS)
perpetuated the problem of training the pool of potenƟal DE
Underwriters. Consequently, we find ourselves where we are
When FHA revised one of their Handbooks in the 90’s
that addressed this issue, it has been overlooked or liƩle
used due to the lack of originaƟons for FHA financing. FHA
foresaw the need for “Full Eagle” lenders needing qualified
underwriƟng assistance for some specialty programs or
when the Lender had large increases in volume. FHA
allows one Full Eagle lender to work with another Full Eagle
lender for such things as the underwriƟng of HECM loans
when their DE Underwriter is not approved to underwrite
HECM loans or underwrite other programs such as 203k
(rehabilitaƟon loans) or the New FHASecure program, which
has been implemented recently to help Americans save their
homes from foreclosure.
One DE Underwriter that we spoke to has been in the
mortgage business since 1981 and tells us her story of
how five years ago she ended up working as a contract
underwriter for a PMI company in favor of uƟlizing the
nearly 30 years of experience she had as a DE Underwriter.
As a contract underwriter she was forbidden by FHA rules
to use her extensive experience because she was not an
employee of the Lender for which she was underwriƟng. She
maintained her training and kept herself updated with FHA
rules with the hope that they would come back some day.
To make maƩers worse today, the pool of potenƟal DE
Underwriters has been reduced greatly because this pool
comes from FHA Processors and there are less of them for
the same reasons that the DE Underwriters are reduced,
reducƟon in FHA loans in the past few years. This can be
evidenced by the many groups and organizaƟons that are
providing FHA training. Now, this might replenish the pool of
potenƟals but it doesn’t provide the experience someƟmes
necessary when it comes to evaluaƟng risk on many of
the FHA products today. Remember, that the manually
underwriƩen loan looks at both the Lender invesƟng the
money and whether FHA should insure the loan.
The Quality Control Department
DE UnderwriƟng for the Quality Control Department
presents similar issues. FHA Handbook 4060.1, Chapter 7-6
F., states:
Each Direct Endorsement loan selected for a quality
control review must be reviewed for compliance
with HUD underwriƟng requirements, suffi ciency of
documentaƟon and the soundness of underwriƟng
If the QC Underwriter is going to analyze for soundness of
underwriƟng judgment and is not a DE Underwriter, then
a true check of the original underwriter is not made. Since
there were so few FHA loans originated, many shops have
FHA loans reviewed by non-DE Underwriters. Now, of course,
filling the QC Department with at least one DE Underwriter
when there isn’t a suffi cient number in the UnderwriƟng
Department, especially in small insƟtuƟons, makes for a
diffi cult proposiƟon.
The QC situaƟon is much easier to recƟfy than the one in
Solution Today for DE Underwriting
by Daniel DuplanƟs and Barbara Santner
June 2008
“Forward Thinking in Reverse”
the UnderwriƟng Department according to FHA rules. FHA
allows for outside contracƟng of the Quality Control funcƟon
although the Lender is sƟll liable for the QC program. Many
outside QC firms do not use DE Underwriters when they
review FHA loans and therefore the issue of checking the
Lender’s and FHA’s risk by the original Underwriter has not
changed with outside contractor providing the service.
Where Do We Go From Here?
UnƟl such Ɵme as the pool of DE Underwriters gets
replenished, the most viable and cost-effecƟve alternaƟve
is to go with a Full-Eagle Lender to contract out the DE
underwriƟng for both the UnderwriƟng Department and
Quality Control Department. The contractor is paid for only
those FHA loans that need to be underwriƩen rather than
hiring full-Ɵme DE Underwriters for both the UnderwriƟng
and Quality Control Departments.
About the Authors: Daniel J. DuplanƟs, CMB, CRU is a 35-year
veteran of the mortgage finance business and is ExecuƟve
Vice President and Chief Credit Offi cer of USA Underwriters
a division of American Reverse Mortgage CorporaƟon. He
has held a single-family and mulƟ-family DE from FHA since
1983. DuplanƟs is one of only 10 in the US that holds both
the CMB and CRU designaƟon from Mortgage Bankers
AssociaƟon of America. He can be reached at D.J.DuplanƟs@
Barbara C. Santner, CMB, CRU has been a DE Underwriter
since 1986 and serves as Vice President of UnderwriƟng for
USA Underwriters, a division of American Reverse Mortgage
CorporaƟon. She manages the team of all DE Underwriters
for helping other Full-Eagle Lenders in their underwriƟng of
all FHA products. She is also one of only ten in the US with
both the CMB and CRU designaƟon from Mortgage Bankers
AssociaƟon of America. She can be reached at B.C.Santner@
Have a question for
The Reverse Review underwriter?
Please email us at
June 2008
Reverse Mortgage Industry Snapshot
As Of April 2008
10 Regions, ranked by HECM unit volume YTD. Including rank change from prior YTD, as well as growth rates.
Also includes acƟve lenders and growth
Lender distribuƟon graph and table, showing number of lenders growing at various growth rates YTD vs. prior
YTD, including volume aƩributable to each group of lenders.
Client NoƟces
1) Help improve data quality in the Reverse Mortgage industry. If you believe your company’s numbers on this report are inaccurate, please email us
( and we will review your feedback promptly. Please include your name, company and contact informaƟon along with a thorough descripƟon
of the suspected inaccuracy. Thanks!
2) If you received this report as a trial or sample and would like to purchase this report or future reports for your company, please visit:
3) If you’ve been looking for a source for Reverse Mortgage intelligence beyond MIC endorsement numbers, we’ve got just what you need. Find out more at www.
Rank Chg 2008YTD 2008
1 1 9,832 532
2 -1 8,030 512
3 - 4,834 238
4 - 4,112 315
5 1 3,467 198
6 -1 2,899 196
7 1 2,266 188
8 -1 2,233 206
9 - 1,376 122
10 - 1,048 108
40,097 1,868
2.614% -0.23%
Industry Totals 8.07% 108,287 81.54%
Great Plains 7.82% 2,827 96.36%
5.569% -21.94%
Rocky Mountain 26.35% 3,296 60.53% 3.432% 16.92%
New England -15.64% 6,963 57.25%
7.23% -11.26%
Northwest/Alaska 19.14% 5,790 88.0% 5.651% 10.24%
New York/New Jersey -4.1% 8,322 83.18%
10.255% -4.21%
Southwest 30.73% 8,073 88.57% 8.647% 20.97%
Midwest 3.52% 11,434 54.41%
20.026% -15.03%
Mid-Atlantic 15.37% 11,956 90.4% 12.056% 6.75%
Pacific/Hawaii -8.17% 25,612 58.51%
2008YTD Chg%
Southeast/Caribbean 24.28% 24,014 128.33% 24.521% 15.0%
Region YTDChg% 2007TOT Chg%
Endorsements Active Lenders Region Share
New Lenders 1,061 6,379
over 400% 58 4,170 255
301% to 400% 14 302 65
201% to 300% 26 434 121
101% to 200% 72 3,061 1,227
0 to 100% 250 8,389 5,929
-99% to -1% 387 17,362 28,043
-100% 222 1,462
Growth Rate Lenders YTD MIC Last YTD
Lender DistribuƟon by YTD Growth Rate
StaƟsƟcs Provided by Reverse Market Insight
Top 10 Rankings by Region
June 2008
“Forward Thinking in Reverse”
2 year trend graph of monthly HECM unit volume and industry penetraƟon against 62+ homeowner households naƟonally.
1) All staƟsƟcs based on retail originaƟons from HUD’s Monthly HECM MIC reports
2) Loans are in unit volume, based on HUD reported mortgage insurance cerƟficate issuance
3) Lenders are aggregated using HUD’s lender idenƟficaƟon numbers and unique lender names, along with feedback from
reporƟng lenders
HUD Regions and Corresponding States/Territories
Region 1 - New England
New Hampshire
Rhode Island
Region 2 - New York/New Jersey
New York
New Jersey
Region 3 - Mid-AtlanƟc
District of Columbia
West Virginia
Region 4 - Southeast/Caribbean
North Carolina
Puerto Rico
South Carolina
U.S. Virgin Islands
Region 5 - Midwest
Region 6 - Southwest
New Mexico
Region 7 - Great Plains
Region 8 - Rocky Mountain
North Dakota
South Dakota
Region 9 - Pacific/Hawaii
Federated States of Micronesia
Region 10 - Northwest/Alaska
24 Month Penetration and Unit Volume
2006-5 2006-9 2007-1 2007-5 2007-9 2008-1
MIC Units Penetration %
24 Month PenetraƟon and Unit Volume
June 2008
Keep Seniors At Home for Life!
by Valerie VanBooven
Understanding your market (seniors
and their adult children) is the key to
success in the Reverse Mortgage industry.
Understanding programs that fit together
beauƟfully makes you the undeniable “go
to” guy or gal in your local market. Doing
a liƩle homework can reap BIG benefits
now and in the future.
We all want to maintain our independence and choice
for as long as possible, right? So what if you could show your
prospect how to afford long-term care without insurance,
and without leaving their home? It’s possible! (As an aside,
I would always recommend that healthy seniors look into
long-term care insurance. For some, they are unable to
qualify due to health concerns.)
Did you know that there is a pension benefit available to
Veterans and the widows of Veterans who served during a
period of war? Even beƩer, that Veteran did not have to be
injured in an act of war or during acƟve duty to receive this
parƟcular pension benefit. Most people have NO IDEA this
even exists. Now you have a markeƟng tool that many others
will not take advantage of because they won’t do their
There are financial benefits available for Veterans
or their surviving spouses for non-service connected
The Veterans AdministraƟon has established a pension
program whereby your purchase of personal care and
aƩendant home services may be paid for through their
acquired pension. A Veteran or the surviving spouse of a
Veteran who has served at least 90 days or more on acƟve
duty with one day beginning or ending during a period
of war, and who is in need of assistance at HOME due to
disabiliƟes, may be eligible for VA’s non-service connected
disability pension.
The following are the VA’s defined “periods of war”:
• WWI - Apr. 16, 1917 to Nov. 11, 1918
• WWII - Dec. 7, 1941 to Dec. 31, 1946
• Korea - Jun. 25, 1950 to Jan. 31, 1955
• Vietnam - Aug. 5, 1964 to May 7, 1975
• Persian Gulf - Aug. 2, 1990 to present
Aid and AƩendance can help pay for care in the home,
nursing home or assisted living facility. A Veteran is eligible
for up to $1,519 per month, while a surviving spouse is
eligible for up to $976 per month. A couple is eligible for up
to $1,801 per month. This increases each year for cost of
Here’s the interesƟng part. It takes about 4-6 MONTHS
for the family to go through the paperwork, get approved,
and start receiving the benefit (which does pay retroacƟvely
by the way). In the meanƟme, MANY seniors look to Reverse
Mortgages to fill in that cash flow GAP while they are
waiƟng for approval. SomeƟmes obviously the VA Aid and
AƩendance Pension Benefit does not cover all of the costs of
care at home, and more cash flow is needed- which makes
this the perfect fit for Reverse Mortgage proceeds to fill the
“A Veteran or the surviving spouse of a Veteran
who has served at least 90 days or more on acƟve
duty with one day beginning or ending during a
period of war, and who is in need of assistance at
HOME due to disabiliƟes, may be eligible for VA’s
non-service connected disability pension.“
June 2008
“Forward Thinking in Reverse”
You don’t have to be an expert in the VA Aid and
AƩendance Pension benefit to use this informaƟon to your
advantage. In fact, it is recommended that the family/senior
take on the project of applying themselves. This is not a
service that anyone can charge for, and is Ɵme consuming in
many cases.
However, while that process is moving forward, Reverse
Mortgage Loan Consultants can swoop in and save the
day by providing much needed cash flow within 30 days
of applicaƟon for a Reverse Mortgage. The markeƟng
opportuniƟes are bounƟful. Keep in mind that you need
to be able help your senior and their family members
understand how to use the Reverse Mortgage money
properly so that they don’t disqualify themselves for this
important benefit by puƫ ng a lump sum of cash into their
checking account. (Hint: Leaving it in the line of credit is
oŌen the best opƟon.)
For more informaƟon on this program and how it works
seamlessly with Reverse Mortgages, I am happy to share
a free webinar playback (WMV file) with anyone who is
interested. Your seniors and your community will appreciate
you even more once you are armed with new informaƟon on
how to keep seniors home for life!
About Valerie VanBooven: Valerie VanBooven RN BSN is the
NaƟonal MarkeƟng Director for Next GeneraƟon Financial
Services, a Division of 1st Mariner Bank. She is a professional
speaker and the author of the books “Aging Answers” (2003)
and “The Senior SoluƟon” (2007). Her websites are www. and . Valerie can be
reached at
lä| |\||\l|ï \l\\|\|| \|\|| |ll¡
Ѯe Industrv Standard is not just a slogan.
Six of the top 10 reverse mortgage originators
use Ibis Soѫware for their websites, retail
and wholesale businesses.
Ѯose lenders are using:
Loan origination modules include CRM,
Ouick Ouote, Proposal, Application,
Underwriting, Documents, Closing, Pipeline
Reports, and Cost Templates. Plus Broker
and Correspondent Management. Full state
specifc application and closing packages can
be stored, printed, and emailed.
Bilingual consumer calculators,
alreadv in use at:
- -
- -
and manv other websites
Ibis also provides:
A complete counseling package for
HUD-Approved reverse counselors.
For more information, visit
Or call (800) 566-5077
Like what you have read?
Share your thoughts with the editor!
email us at
June 2008
Wall Street Prefers LIBOR HECM’s
They will be kind to your clients!
Turnabout is fair play! Rate spreads
have changed materially since our
arƟcle in the May 2008 issue of The
Reverse Review (see The Reverse Review
Website). Last month we said that a
LIBOR HECM could give an extra $80 in
iniƟal benefits, but its iniƟal Note Rate
would be 0.676% higher, if that spread
held the borrower would owe an extra
$26,454 in ten years. We also pointed out that historically
things were out of synch -- the one-month LIBOR has been
only 0.13% higher than the one-year Constant Maturity
Treasury (CMT) rate.
A lot has changed in the past month. Table 1 below
shows various reverse mortgage indexes now and then. Note
that the short-term Treasury indexes have gone up and the
short-term LIBOR indexes have gone down.
Our prior arƟcles explained how a 5.56% floor was used
with 10-year rates when looking up HECM principal limit
factors (LTV factors to you forward mortgage folks). An
Expected Rate of 5.56% or less pays the maximum benefit
available from a HECM. With today’s rates, June 10th in the
table above, we see that a LIBOR HECM could have a margin
up to 90 bp since the 10-year Swap rate is 4.66% -- a Treasury
HECM could have a margin up to 1.58% -- both products
would then meet the 5.56% floor.
Here’s the Turnabout?
Table 2 compares the LIBOR and CMT HECM. Wells Fargo
is the largest originator of reverse mortgages and now uses a
margin of 1.50% on the monthly-adjusƟng Treasury HECM.
Using a 90 bp LIBOR margin (the highest that will sƟll
allow) the Expected Rate to round to 5.50%, we see that
by Jerry Wagner
“... not sure that borrowers will be worse off with
LIBOR. Of the two interest rate series, I think the
CMT is ... subject to US monetary policy swings …
Chinese willingness to buy US Treasuries … while
the LIBOR is more Ɵed into the global economy.”
Table 1
Index Source 6/10/08 4/28/08 Change Use
1-month LIBOR WSJ 2.44938% 2.87375% -0.42% LIBOR Monthly HECM
6-month LIBOR WSJ 2.96938% 3.01875% -0.05% Some LIBOR Jumbos
1-year LIBOR WSJ 3.21063% 3.06750% 0.14% LIBOR Annual HECM
5-year Swap FED H15 4.13% 3.67% 0.46% Fixed Rate HECM Index
10-year Swap FED H15 4.66% 4.34% 0.32% LIBOR HECM Principal Limit
FNMA 60-Day FRM FNMA 6.11072% 5.88378% 0.23% Gold Fixed Rate Jumbo
1-month CD FED H15 2.45% 2.83% -0.38% Fannie Mae HomeKeeper
1-month CMT FED H15 1.86% 0.86% 1.00% Treasury Monthly HECM
1-year CMT FED H15 2.14% 1.67% 0.47% Treasury Mo. & Annual HECM
10-year CMT FED H15 3.98% 3.67% 0.31% Treasury HECM Principal Limit
June 2008
“Forward Thinking in Reverse”
a LIBOR HECM gives an extra $38 in available benefits
because its higher Expected Rate gives a lower SFSA.
Table 2
Short-term Index 2.449% 2.14%
Investor Margin 0.900% 1.50%
IniƟal Note Rate 3.349% 3.64%
10-Year Index 4.660% 3.98%
Investor Margin 0.900% 1.50%
Expected Rate 5.560% 5.48%
LTV Lookup 5.500% 5.500%
LTV Factor 0.715 0.715
Max Claim Amount 362,790 362,790
Principal Limit 259,395 259,395
Loan Fee -7,256 -7,256
Upfront MIP -7,256 -7,256
3rd-Party Costs -2,211 -2,211
Available AŌer Costs 242,672 242,672
SFSA -4,803 -4,841
Available Benefits 237,869 237,831
And now its iniƟal Note Rate is 0.291% lower than
the Treasury HECM. If this spread holds, this 73 year old
borrower will owe $9,451 less in ten years by choosing the
Two key rates affect a HECM
The long rate determines how much can you get. The
short rate determines what it will cost you. The spread
between short-term and long-term LIBOR and CMT rates
changed remarkably in the last five weeks.
The LIBOR spread rose by 74 bp – this means that
the short-term LIBOR (used in finding the note rate) is
considerably lower than the long-term LIBOR (used in finding
the LTV). The opposite happened with Treasury HECMs – the
spread fell by 43 bp.
Table 3
Spread 6/10/08 4/28/08 Change
Long v Short LIBOR 2.21% 1.47% 0.74%
Long v Short Treasury 1.77% 2.20% -0.43%
Difference 0.44% -0.74% 1.18%
In conclusion historical yield spreads are reasserƟng
themselves, your client likely will be beƩer off in a LIBOR
HECM if their iniƟal benefits are equivalent to those from
a Treasury HECM. In response to the May arƟcle, the best
authority on HECM emailed me: “... not sure that borrowers
will be worse off with LIBOR. Of the two interest rate series,
I think the CMT is ... subject to US monetary policy swings …
Chinese willingness to buy US Treasuries … while the LIBOR is
more Ɵed into the global economy.” I agree.
Thankfully the “American CondiƟon” was a short-lived
About Jerry Wagner: Jerry Wagner is President and Ashok
Shinde is CTO of Ibis soŌware based in San Francisco. Ibis
has been the Standard of the reverse mortgage industry
since 1995. Wagner graduated from Harvard Business
School and has a Ph.D. in Economics from Harvard. But
he’s sƟll a fun guy and can be reached at 800-566-5077 or To learn about Ibis soŌware, see
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June 2008
“Forward Thinking in Reverse”
For many involved in reverse
mortgage lending, one of the most
diffi cult concepts to master and to
explain is the calculaƟon of the loan
servicing set-aside fee. As part two of
this two-part series on reverse mortgage
servicing, we will try to explain what
the servicing set-aside is and how this
concept (and perceived cost) should be
explained to a borrower.
The servicing set-aside fee is disclosed on the reverse
mortgage summary calculaƟon that is typically provided
to reverse mortgage borrowers. This summary generally
conveys the available loan proceeds to a borrower, under
comparaƟve reverse mortgage scenarios. The servicing
set-aside is a lump sum item listed separately and is oŌen
perceived as a closing cost or charge to the borrower.
Fortunately this large dollar amount is not a closing cost paid
by the borrower. Unfortunately, the originator will need to
explain what the servicing set-aside is and why it is not a
closing cost. By the way, you will probably have this exact
discussion with just about every reverse mortgage borrower
you work with!
So what is a loan servicing set-aside? I have heard a
variety of answers from many reverse mortgage lenders
across the country. InteresƟngly, many experienced and
inexperienced lenders do not explain this item properly. This
shouldn’t be a surprise to anyone as the servicing set-aside
concept has been a murky subject to most!
By way of example, here are some common explanaƟons
provided to borrowers of what the servicing set-aside is:
1. The lender collects the full amount of the servicing set-
aside at closing
2. Each month, the lender disburses funds from the
servicing set-aside to pay for the monthly servicing fee
3. When the servicing set-aside funds withheld run out,
then the borrower has to repay the reverse mortgage
4. The total amount of the servicing set-aside is incurring
interest charges
5. The borrower does receive a refund of the servicing set-
aside fee if they move out before the servicing set-aside
is fully disbursed
6. The borrower does not receive a refund of the servicing
set-aside fee if they move out before the servicing set-
aside is fully disbursed
With this variety of misinterpretaƟons, let’s try to
describe exactly what the servicing set-aside is. HUD
Handbook 4235.1 Rev. 1, Appendix 7 describes the servicing
set-aside as:
2.3.4. {The} Lender shall iniƟally set aside from the
Principal Limit the amount indicated on the aƩached
payment plan (Exhibit 1) to be applied to payment
due for a fixed monthly charge for servicing acƟviƟes
of Lender or its servicer. Such servicing acƟviƟes are
necessary to protect Lender’s interest in the Property.
What is a Loan Servicing Set-Aside?
by David Cesario
“The servicing set-aside effecƟvely creates an
addiƟonal equity reserve in the property that is
available to address the ongoing incursion of the
monthly servicing fee.”
June 2008
A servicing fee set aside, if any, is not available to
the Borrower for any purpose, except to pay for loan
This definiƟon references that the “…servicing fee set-aside,
if any, is not available to the borrower for any purpose,
except to pay for loan servicing.” In pracƟce, the monthly
servicing fee is not being withdrawn from the amount
iniƟally set-aside. Instead, the borrower has a monthly
service charge added to their outstanding balance each
month for the cost of servicing. Monthly servicing fees
typically range between $20 and $35 depending on the loan
and lender selected. The servicing set-
aside effecƟvely creates an addiƟonal
equity reserve in the property that
is available to address the ongoing
incursion of the monthly servicing fee.
The HUD Handbook 4235.1 Rev. 1,
SecƟon 5.7 goes on to describe how
the servicing set-aside fee should be calculated as:
A set-aside for monthly servicing fees is calculated by
determining a fixed monthly fee, and then
determining the present value of that fee using the
term used for a tenure payment plan (i.e. to the
borrower’s 100th birthday) and the compounding
rate defined below in 5-8B.2. Example: The present
value of a fixed monthly servicing fee of $25, given
a term of 300 months and a compounding rate
of .0825 divided by 12 is $3,192.58. This amount
should be subtracted from the principal limit to
arrive at the net principal limit that is used for
determining monthly payments or a line of credit.
To beƩer understand how much servicing expense a
borrower would incur, let’s look at an example. Using the
numbers cited from the HUD Handbook, we will use a $25
monthly servicing fee and a calculated servicing set-aside of
$3,192.58 for the example. If a borrower obtained a reverse
mortgage loan with this set of factors and the borrower
moved out of the home at the end of 2 years, let’s calculate
what the servicing charges would be in this example.
Monthly Servicing Fee: $ 25.00
Length of Loan x 24 months
Total Servicing Expense Paid $ 600.00
Although the servicing set-aside fee was iniƟally
calculated at $3,192.58, the actual servicing expense paid
by a borrower who repays their reverse mortgage loan at
the end of 2 years is $600.00. The difference ($3,192.58
- $600.00 = $2,592.58) remains as equity in the home. The
lender never collected this excess amount and the borrower
is not due a refund of this excess amount. The excess
amount was leŌ as addiƟonal equity in the home and sƟll
remains as equity.
Sounds easy enough to explain to a reverse mortgage
borrower, doesn’t it? The reality of the servicing set-aside
is that it is just part of the calculaƟon or algorithm used to
determine the borrower’s ulƟmate access to proceeds. But
unlike other parts of the algorithm the servicing set-aside
is disclosed and appears to be a sizable, up-front cost or
In the interest of full and complete
disclosure to potenƟal borrowers, the
concept of disclosing the servicing
set-aside makes sense. The more
informaƟon a potenƟal borrower can
have about the components of a loan
transacƟon being contemplated, the
beƩer a decision that borrower can
make. But if that reasoning was the raƟonale for disclosing
this part of the qualificaƟon equaƟon, then shouldn’t we
disclose the rest of the reverse mortgage algorithm? To
provide the balance of the algorithm, you would need to
print and provide the contents of HUD Handbook 4235.1 Rev.
1 to your borrowers.
IrrespecƟve of the logic (or lack thereof) of disclosing
the servicing set-aside to potenƟal borrowers, and you are
faced with the challenge of doing it. Make sure you have a
good understanding of what the servicing set-aside is and
how it is calculated. Then you should have a good chance of
providing a clear explanaƟon for your borrowers.
About David Cesario: David Cesario is a naƟonal speaker
and educator on Reverse Mortgage Lending. He serves as
the ExecuƟve Vice President of 1st Reverse Financial Services,
LLC, a naƟonal wholesale reverse mortgage lender, located
at 410 Quail Ridge Drive in Westmont, Illinois, 60559. The
company’s website is located at where
informaƟon can be found about 1st Reverse’s wholesale
lending programs and opƟons for lenders interested in
offering reverse mortgage loans.
“The more informaƟon a potenƟal
borrower can have about the
components of a loan transacƟon
being contemplated, the beƩer a
decision that borrower can make.”
Over the last 20 years, 345,000 reverse mortgages have been originated. Last year, originations hit a
new high: $20 billion. As the US population ages, the market has responded with new and innovative
products and services geared towards keeping seniors in their homes for longer periods of time.
National lenders in need of market diversification have migrated to reverse mortgages in an attempt to
make up for lost business in other markets.
Recently Michael Fosser, senior vice president of First American eAppraiseIT, offered his perspective on
this market and the opportunities and challenges that it presents to lenders.
Why are so many lenders including reverse mortgages in their product mix?
Today many market segments continue to be depressed and markets like sub prime and Alt-A are almost
nonexistent. Reverse mortgages tend to be more “need driven” and less tied to market conditions. In the
US today, more than 38 million eligible reverse mortgage customers own their homes outright. That’s $4
trillion in untapped equity. This offers a great opportunity for lenders to grow their portfolio of business in
a market that is less sensitive to fluctuations in the real estate market.
Are some appraisers more qualified than others to service this market?
Over 90% of today’s reverse mortgage originations are insured by FHA. Not every appraiser or appraisal
management company is qualified to complete these assignments. At eAppraiseIT we have a nationwide
network of more than 8,000 appraisers who are FHA certified – one of the largest panels of FHA appraisers
available in the industry today. To ensure a successful reverse mortgage offering, lenders need to work with
an appraisal management company that can provide national coverage and still maintain reasonable turn
times. In our case, that is five to seven days.
What challenges does a lender face servicing this market?
AARP recently conducted a survey of reverse mortgage customers and one of its findings was that their
properties frequently need repairs. This of course can complicate the underwriting process and salability
of a loan. To reduce lender concern, eAppraiseIT has created a new product specifically geared for the
reverse mortgage market called “Value View”. It helps lenders assess the condition and value of a property
while the loan is in the lender’s portfolio. This low cost inspection report includes a current photo of the
subject property, an automated valuation using two comprehensive AVM’s, and an inspection report that
answers questions regarding a property’s condition, marketability, and neighborhood. Value View is a great
peace of mind option for any lender interested in originating reverse mortgage loans.
Michael Fosser
Commentary by First American eAppraiseIT
Internet search leads are unique.
Unlike other forms of adverƟsing
(television, cold-calling, direct mail,
radio, etc), Internet search is the
only form of adverƟsing where the
consumer is not experiencing an
interrupƟon into their everyday lives.
Instead consumers are truly iniƟaƟng
a request to find out more informaƟon
about your product and/or offering.
Why chase consumers when there
are so many already looking for you
online? Why not work towards making
Why Internet MarkeƟng?
by Gretchen Williams
June 2008
“Forward Thinking in Reverse”
yourself more visible to them? Online search consumers are
not making contact from an unsolicited offer they received
because they were cold-called and coached by a call center
rep. The process of researching informaƟon online is
iniƟated by the consumer’s interest in your product. Online
users conduct a search, siŌ through the results and then
review the website that they believe will provide them with
the most accurate informaƟon for the product they are
researching. When these consumers reach this website they
are more comfortable submiƫ ng their contact informaƟon.
Internet markeƟng delivers qualified consumers that have a
user iniƟated interest in your product.
But how does the Internet relate to the senior
demographic? Are seniors really online? The answer is yes.
Seniors are one of the fastest growing online demographics
and online seniors can oŌen be one of your most educated
and savvy clients. Online markeƟng also provides you an
opportunity to speak to third-party decision makers early
on in the process. Many Ɵmes these are the individuals
who pose obstacles by refusing you access to them. By
speaking to these third-parƟes, such as adult children, and
others requesƟng the informaƟon on behalf of the senior,
you have the opportunity to dispel any misconcepƟons from
the onset and ensure proper educaƟon. Even beƩer, having
their support can oŌen facilitate the process of closing
more deals, especially over the phone and through the mail.
Overall, search markeƟng will allow you the opportunity to
speak to borrowers at all stages of the process, building your
pipeline and providing you with a steady stream of leads.
You can now close your hot leads while incubaƟng your
warms ones, finally freeing yourself of that vicious sales cycle
and allowing you to more accurately forecast your sales.
Perhaps the most important thing to be aware of is the
cost. Search markeƟng can be very expensive, especially
if it is unfamiliar territory. It does require a certain level of
knowledge and skill in order to be effecƟve, and the tesƟng
that is essenƟal for success is very Ɵme consuming. This
arƟcle is aimed at providing you with some basic knowledge
to get started while also sharing Ɵps for successful lead
follow up. However, as with all parts of your business, it
is important to recognize your strengths and weaknesses
and outsource when it makes sense. In the end, it is about
where your Ɵme is best spent and how you can achieve the
lowest lead acquisiƟon cost.
Website Design Tips/RecommendaƟons
Before you can parƟcipate in the world of search
markeƟng and Internet lead generaƟon you need to first
lay a foundaƟon; create a place online where consumers
can gather to obtain the informaƟon they need to make
an informed decision. I am, of course, talking about your
website. There are many things that you need to consider
when designing a website, especially as it relates to the
senior demographic. Here is a checklist to get you started:
InformaƟon-rich content
Easy to use navigaƟon
Font size and color – in this case, you want a larger font
and dark text on a light background
Include a call-to-acƟon. A call-to-acƟon is an implicit or
explicit suggesƟon that directs customers and prospects
to act in some manner, such as calling a toll-free phone
number to request more informaƟon.
Easy to access contact form
Visible phone number on every page
Establishing a Goal and MarkeƟng Strategy
Once you have created your website you are now ready
to ‘open your doors’ for business and receive traffi c. Your
involvement in search markeƟng will have a direct effect on
your website’s traffi c, so it is essenƟal that you establish a
strategy early on. One of the most important aspects of any
good strategy is establishing an end goal and ensuring that
all steps throughout keep that goal in mind. Your website
will most likely have one of two goals: 1) to serve as an
informaƟon portal for your exisƟng clients, or 2) to generate
addiƟonal business that you would not have otherwise had
access to offl ine. Your search markeƟng strategy will be
different depending on your end goal.
If your goal is to solely provide informaƟon for exisƟng
clientele, and any business they may refer, then your
primary focus should be on those tools and resources that
they require. Although, this content is relevant for any
informaƟon-rich site (regardless of its end goal) you will want
to be sure that your site includes things like: a step by step
process from applicaƟon to close of loan, relevant news and
changes to programs, payment schedules, etc.
If your ulƟmate goal is to generate addiƟonal business
then you will need to familiarize yourself with some search
markeƟng terminology. To start there are 2 different types of
search markeƟng that you should consider: sponsored/paid
and organic.
“Online markeƟng also provides you an
opportunity to speak to third-party decision
makers early on in the process. Many Ɵmes
these are the individuals who pose obstacles by
refusing you access to them.”
June 2008
• PPC (Pay-per-Click, also referred to as Cost-per-Click
or CPC): is a type of sponsored/paid search markeƟng
where you pay a set price each Ɵme your ad is clicked
(this is known as a click thru). Examples includes: Google
AdWords, Yahoo Search MarkeƟng and MSN adCenter.
• SEO (Search Engine OpƟmizaƟon): is the process of making
a site and its content highly relevant to both search
engines and those conducƟng the searches. Successful
search markeƟng will result in your
site’s top (organic) posiƟoning for
relevant keywords and phrases.
Other important terminology:
• Conversion rate: measurements that
determine how many consumers take your preferred
acƟon step. With a paid search campaign you will have
mulƟple conversion rates.
o Click through conversion: number of consumers that
click on your ad divided by the total number that viewed
it through their search results.
o Landing page conversion: number of submissions you
receive through your landing page divided by the pages
visitor total.
Paid Search Campaign Components
There are many components that will make up your paid
search campaign, among them: budget, geographic targeƟng
and keyword research. Once you determine your budget and
the geographic area that you will target it is Ɵme to begin
the process of researching relevant keywords. Part of this
research includes establishing ‘negaƟve’ keywords (i.e. those
keywords that you do NOT want your ad to be displayed for).
There are many tools available to assist
you with this research, many of which are
free and available directly through search
engines like Google, Yahoo and MSN.
Keyword research is especially important
with the senior demographic who typically
are not as well-versed in using Internet search. Without the
ability to ascertain the keywords that are being used by the
consumer when searching your campaign will lack exposure.
In order to have an effecƟve campaign there needs to be
a common thread connecƟng the consumer’s search, search
results (i.e. your ad) and the landing page. A landing page
refers to the page the consumer clicks through to from the
paid search campaign (i.e. the page they ‘land’ on). For best
results, your landing pages must be highly targeted to the
consumer’s search and your paid search ads. As an example,
a consumer search for ‘reverse mortgage applicaƟon’ should
“Try different strategies and
schedules unƟl you find the
one that best compliments
your unique selling style.”
June 2008
“Forward Thinking in Reverse”
land the consumer on a page to complete an applicaƟon. If
you, instead, send this visitor to your website’s homepage
you will only cause frustraƟon which will, ulƟmately, result
in a less than desirable conversion rate. Since you are
paying for every click through on your ad non-relevance will
significantly increase your cost per conversion. This, coupled
with poor budget constraints can drive you out of the search
markeƟng space very quickly.
This brings us to perhaps the most important component
of any paid search campaign, Tracking, TesƟng and
Revising. Reworking landing pages is one of the simplest
and most effecƟve ways to increase your conversion rate.
It is imperaƟve that you track your results from campaign
implementaƟon and then test, revise, and test again.
Those with the most effecƟve and effi cient campaigns will
constantly be searching for ways to improve results and
adapt to the ever-changing consumer and search markeƟng
Search Engine OpƟmizaƟon
Search Engine OpƟmizaƟon contains two different
elements: on-site and off-site. On-site refers to those
elements that make up the site itself. This includes meta
tags, Ɵtle tags, keywords and the site’s overall content. Off-
site refers to those elements outside the boundaries of your
site that can affect your site’s organic performance within
the search engines. Examples include: building inbound links
and site directory submissions.
Search engine opƟmizaƟon is an enƟrely different beast
all together and to do it properly requires the experƟse of
an industry expert. This is definitely one of those situaƟons
where it makes the most sense to outsource. Be sure to do
your due diligence as a consumer and always ask to speak to
Keys for Successful Lead IncubaƟon
Acquiring interested prospects is one thing, but
successful follow up that results in closing deals is quite
another. The first step (as obvious as it may seem) is to pick
up the phone, and to do so as soon as possible. Borrowers
researching quotes and other reverse mortgage informaƟon
commonly submit their informaƟon to mulƟple sites. Any
genuinely interested consumer will do their due diligence
and this includes making requests with mulƟple companies,
whether online, over the phone or both. Therefore, it is not
uncommon to hear “I have already spoken to 20 different
people”. ExaggeraƟon, or not, the possibility remains that
you are not the first (or even the last) person they will speak
with. The most important thing you can do for yourself in
the first call is establish their need. Sure, they want more
informaƟon about a reverse mortgage, but the real quesƟon
is…why, and for what reason? Find this out and overcoming
objecƟons will be a breeze, without this informaƟon you
can only hope to close deals by geƫ ng lucky. Once you
recognize their needs, begin addressing them one by one.
This approach will not only uncover the real reason for their
inquiry but it will also help to you establish a relaƟonship and
build rapport with the borrower.
Follow these keys to success and increase your return on
• Call all prospects ASAP and make sure your website
has an auto responder giving them an alternate way to
contact you.
• Check for misspellings and format errors (i.e. spaces,
missing dots, etc) in email addresses and well as incorrect
area codes in phone numbers before deeming a contact
• Reference the web address or other lead source in your
introducƟon and all subsequent communicaƟons.
• Be persistent, but polite. It is unlikely that you will reach
a borrower by phone with only 1-3 call aƩempts and not
receiving a call back does NOT mean they are no longer
interested. Instead, try changing your call Ɵme and
(if applicable) remove your caller ID block. Only leave
messages when you have a reason to do so. For example,
let them know that you would like to send them more
informaƟon but first need to confirm their address. If you
sƟll cannot reach them, then send the informaƟon and
leave a message to let them know it was sent. Your next
aƩempt can be to confirm receipt while making yourself
available to answer quesƟons.
• Establish the borrower’s need/goal in the first call.
Ask something like, “What interested you about a
reverse mortgage that prompted your request for more
informaƟon?” Keep the first call under 30 minutes and
ask easy quesƟons the borrower knows how to answer.
Above all else, you do not want to overwhelm them.
• Include a call-to-acƟon in all of your communicaƟons.
• Avoid asking yes and no quesƟons, instead direct the
conversaƟon with open-ended quesƟons. For example,
what is the best day for us to meet?
• Discuss both the posiƟves and negaƟves of the program
to create a balanced view – this will build trust.
“In order to have an effecƟve campaign there
needs to be a common thread connecƟng the
consumer’s search, search results (i.e. your ad)
and the landing page.”
June 2008
• Inquire about other family members that will be involved
in the final decision making process.
• Offer references.
• Know your strengths. What knowledge and experƟse can
you offer that they cannot get elsewhere?
• Create a strategy and schedule for follow up that extends
over a period of Ɵme (the longer the beƩer). As we all
know, the reverse mortgage consumer is rarely in a hurry
and it is not uncommon to hear stories of leads turning
into deals 9 months or more aŌer their iniƟal inquiry.
CreaƟng a Strategy and Schedule for Follow Up
Your persistence and follow up strategy is essenƟal to
your success. The key is to create a plan for regular follow
up complete with markeƟng materials. UƟlizing a Client
RelaƟonship Management (CRM) tool will increase your
follow up effecƟveness. A CRM tool will help you track
and, beƩer yet, automate your processes. There are many
available that are specific to the mortgage industry; however,
if you cannot afford such a tool at the very least develop a
system to track your results.
When creaƟng your schedule for follow up you need
to first idenƟfy the various lead life cycles (30, 60, 90 days,
etc). Use these life-cycles to customize your CRM tool to
set automaƟc reminders for periodic phone calls, as well
as to send emails and/or leƩers ensuring you remain in
contact with your leads over a longer period of Ɵme. When
building out a schedule it is important that you vary your
message topics, this is especially important where educaƟon
is involved. Examples of markeƟng materials include:
newsworthy arƟcles, situaƟon-specific leƩers, ‘Top 10’ lists
(i.e. Top 10 Things to Know Before Geƫ ng a Reverse), holiday
and other friendly reminders to name a few. Lead follow up
is nothing more than providing interested consumers with
relevant informaƟon on a consistent basis.
You should now have the basic tools to establish a
successful Search MarkeƟng strategy of your own. Know
your strengths and those elements that you can control and
exploit them. For most, your Ɵme is going to be best spent
creaƟng and tweaking your lead incubaƟon process. Try
different strategies and schedules unƟl you find the one that
best compliments your unique selling style. In regards to
your search markeƟng campaign itself, this will most likely
be outsourced, either to an agency specializing in Search
MarkeƟng or a lead aggregator in the reverse mortgage
space. At the very least, you should now have enough
knowledge to engage with and choose a markeƟng partner
that is right for you.
About Gretchen Williams: Gretchen Williams is the Director
of Sales for Reverse Mortgage Directory,
LLC and focuses on advising industry
professionals on Internet markeƟng
strategy and successful lead incubaƟon.
Every month RMD provides thousands
of guaranteed reverse mortgage leads
to hundreds of Lenders across the
United States through its consumer
site, The
site also offers consumer access to its NaƟonal Lender
Directory. For more informaƟon, call (888) 412-5557, email or visit www.
6722 Vista del Mar, Suite A, San Diego, CA 92037
toll |ree 1-888-811-0208 · e|a× 619-330-4872 · emall. - -
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“Any genuinely interested consumer will do their
due diligence and this includes making requests
with mulƟple companies, whether online, over
the phone or both.”
To contact Lender Lead Solutions
call 888.775.3631 or visit our website at
At Lender Lead Solutions we know
that one size doesn’t fit all.
Products for every client;
Wholesale for every lender
A traditional, government-insured Reverse Mortgage.
For clients who want the comfort of a fixed rate.
Lower closing costs and eligibility starting at age 60.
Clients can make the most of their higher-valued homes.
This is for mortgage professional use only, not for distribution to the general public.
June 2008
The Bottom Line: Marketing Numbers That Matter
This month, I’ll begin a mulƟ-part
series about the most important measures
of reverse mortgage success. Each arƟcle
will walk through a specific area of the
industry, focusing on the key risks and
opportuniƟes to growing your reverse
mortgage business. If you have any
quesƟons or would like to suggest topics
for future arƟcles, please contact me.
If you’ve experienced declining returns on your markeƟng
investments in recent months, you’re not alone. A consistent
topic of concern in discussions with many companies
around the industry has been a conƟnuing deterioraƟon in
markeƟng results, as measured by markeƟng cost per funded
loan. Given this backdrop of the current challenges, perhaps
it’s Ɵme to address this topic from a fundamental point of
CompeƟƟve Business
The first point in addressing the concern about declining
markeƟng effecƟveness is to beƩer understand what’s going
on. While there are many opinions and staƟsƟcs to discuss,
the single largest macro driver behind most markeƟng issues
you’re seeing today is compeƟƟon. The number of lenders
funding reverse mortgage loans has almost doubled over
the last twelve months. While the business as a whole
has seen growth rates decline as home values push some
marginal volume out of the business, the bigger key is that
compeƟƟon has increased dramaƟcally.
Puƫ ng these two factors together, the average loan
fundings per reverse mortgage lender (companies, not loan
offi cers) has trended down in recent years but parƟcularly
so in the past 9-12 months. This is strikingly apparent with
March’s number hiƫ ng a low of 7.7 that hasn’t been seen
by John Lunde
June 2008
“Forward Thinking in Reverse”
since December 2001. The business has grown considerably
since then (over 9,600 loans by 1,200+ lenders vs. 706
loans by 97 lenders), but in such a compeƟƟvely distributed
market, it’s more important than ever to understand and
manage your key business metrics to be successful.
Hiƫ ng Your Targets
The key markeƟng metric that everything else Ɵes back
to is MarkeƟng Cost per Funded Loan (MCFL). In this metric,
there are many important subparts that we’ll discuss, but
this is really square one for reverse mortgage markeƟng. The
benchmark here is $1,000, and the important issue here is
to track your enƟre markeƟng cost (media spend, collateral
creaƟon and markeƟng department) and ensure that you’re
tracking based on leads generated and following these
leads through to the end of the process. Costs to generate
today’s leads should show in MCFL when they’re funded,
not on today’s fundings. Given the long sales cycles in the
reverse mortgage business, this is an important disƟncƟon to
ensuring that you’re seeing accurate numbers for decision-
making as campaign spending ebbs and flows.
MarkeƟng Cost Per Funded Loan = [Media Cost (TV,
radio, print ad, direct mail cost) + Collateral Cost
(creaƟng the commercial or mailer) + MarkeƟng
Department Overhead (staff, consultants, etc.)] / Funded
Loans (fundings from leads generated in campaign)
Who’s Listening?
The first step in ensuring an opƟmal MCFL is focusing
efforts on response rates and the percentage of responders
broadly qualified for a reverse mortgage. Regardless of
media channel (direct mail, TV, radio, etc.), the first measure
of a campaign’s success is the number of leads it generates.
In direct mail this can be understood as a percentage of
mailings generaƟng a response, while with other channels it
might simply be a raw count of responses. Either way, the
important focus is to understand how many leads are being
generated and then how many of them are broadly qualified
(age, homeowner, etc.). This is the first step in a successful
markeƟng campaign analysis – now you’re ready to turn your
newfound audience into customers of your firm.
Successful Companies
Rely On
ReverseVision Inc.
3310 Pollock Place • Raleigh, NC 27607
(919) 834 0070 •
Complete integration from origination to
processing, underwriting, closing, and
Highly scalable - for small entities to enter-
prises with correspondents and branches.
Sales oriented graphical interface that
integrates directly with Microsoft Word and
Direct export to Celink, RMS, Fannie Mae,
UBS, Goldman Sachs, ReverseDocuments
and others.
“Regardless of media channel (direct mail, TV,
radio, etc.), the first measure of a campaign’s
success is the number of leads it generates.”
June 2008
Response Rate = Responses / Mailings
% Qualified = Qualified Responses / Total Responses
Who’s Buying?
If there’s one area where we consistently see companies
struggle, it’s in converƟng qualified leads into applicaƟons.
While it’s true that this measure also relies heavily on your
sales force effecƟveness, there’s no excuse for consistently
low performance in this area. Anything under 6% is cause for
serious concern regarding both markeƟng lead quality and
sales conversion training – 10% and above is your goal here
and many companies have seen significantly higher levels of
success. Make sure you conƟnue to track applicaƟons over
Ɵme back to your original lead generaƟng campaign. It’s not
uncommon to see 30% or more of
applicaƟons occur months aŌer the
lead is generated.
There can be, of course,
some external reasons for poor
performance in this area as well.
The first and most obvious circles
back to compeƟƟon. An increasingly
compeƟƟve environment can show
up in a lower level of responses to
your markeƟng campaigns, but is oŌen more telling in the
lower lead to app raƟo. If you don’t already, you’ll want
to consider adding a step to your process to circle back
with leads who don’t apply within 45 days of a salesperson
contacƟng them to understand why they didn’t apply.
Chances are that you’ll see a significant number have gone
on to apply with another lender. It may not be something
you want to hear, but use it as moƟvaƟon for your sales force
and broader organizaƟon to refine the approach and achieve
higher levels of success.
Lead to ApplicaƟon RaƟo = ApplicaƟons / Qualified
Who’s Closing?
If your customer has signed on the doƩed line to apply,
the last thing you want to do is have a high cancel rate turn
all your hard work to this point into a net loss as you absorb
the cost of Ɵme spent on a cancelled loan and maybe even
incur unrecoverable third party costs like appraisals. While
the job of converƟng applicaƟons into fundings is largely
that of your operaƟons staff, the key communicaƟon links
sƟll belong to your loan offi cer in many cases. There’s a
real benefit to having your loan offi cer stay in touch as the
process unfolds, parƟcularly if you’re experiencing longer
turn Ɵmes in your ops center or it’s a parƟcularly challenging
ApplicaƟon to Funding RaƟo = Funded Loans /
Closing the Loop
We’ve talked extensively about costs here without
directly addressing revenue, which is a bit like spending all
day in the kitchen and not eaƟng. The good news here is
that if you’ve done things right so far, the revenue side of
the picture should be a happy one.
While it’s true there are many ways
revenue can be impacted by different
loan circumstances (customer iniƟal
draw, age and home value come to
mind immediately), there are few
cases indeed where you would lose
money if you hit the targets above.
The only word of cauƟon when
calculaƟng a markeƟng ROI is to
use a net revenue number when calculaƟng the markeƟng
ROI. It’s easy to be impressed by a high ROI number when
using a gross revenue number, but it won’t help to see a high
ROI number if your sales and fulfilment costs are too high.
While the net revenue is again dependent on other parts of
the firm besides markeƟng, it’s the only way to measure true
effecƟveness of a markeƟng campaign end-to-end.
MarkeƟng ROI = Net Revenue per Funded Loan /
MarkeƟng Cost per Funded Loan
Net Revenue = Gross Revenue – MarkeƟng Cost- Sales
Cost (commissions, etc.) – Fulfilment Cost
Final Thoughts
If you’ve made it this far, it’s because you already know
that markeƟng is a criƟcal factor in building a successful
reverse mortgage business. While the numbers and
formulas above may not be the first thing you think about
every morning, they’re invaluable when it comes to making
good decisions. There are many ways to ease the pain of
creaƟng and tracking these important numbers, but two of
the best steps are to put good systems in place using your
“If your customer has signed on the
doƩed line to apply, the last thing you
want to do is have a high cancel rate
turn all your hard work to this point
into a net loss as you absorb the cost
of Ɵme spent on a cancelled loan
and maybe even incur unrecoverable
third party costs like appraisals.”
June 2008
“Forward Thinking in Reverse”
desired report outputs as your guide and have a dedicated
analyst create the numbers for you. These steps will help
ensure that you spend more Ɵme using the informaƟon
provided by these key metrics, and less Ɵme creaƟng it – an
invaluable Ɵme saver when you’re growing your business in
an ever more compeƟƟve marketplace.
About the John Lunde John K. Lunde is President and founder
of Reverse Market Insight, the premier source for market
intelligence and analyƟcs services in the reverse mortgage
industry. RMI clients include mulƟple top ten reverse
mortgage lenders and servicers, as well as some of the
largest financial services firms in the world. Find out more at or call 949-429-0452.
Companies Successful
ReverseVision Inc.
3310 Pollock Place • Raleigh, NC 27607
(919) 834 0070 •
ReverseVision puts all the pieces into place.
Successfully used by medium and large
lenders, ReverseVision is the most complete
software in the reverse mortgage industry.
Thanks to the graphical POS, loan officers
convert more leads. Loans are easily under-
written with the semi-automatic underwriting
engine, closed with MERS-compatible docu-
ments, automatically transferred to Fannie
Mae, and reported in compliance with HMDA.
Companies switching to ReverseVision
experience an immediate increase
in their productivity.
“While the job of converƟng applicaƟons into
fundings is largely that of your operaƟons staff,
the key communicaƟon links sƟll belong to your
loan offi cer in many cases.”
June 2008
The Seven Selling Realities
These seven “principles” affecƟng
sales producƟvity have been
condensed from global survey results
on salespeople across a variety of
industries and cultures. Regardless of
what business or environment one is
in, the applicability of these ideas are
1. New prospects are the lifeblood of a business.
2. Selling is a “Numbers Game.” The more you contact, the
more you close.
3. Without new prospects, all presenƟng and closing skills
are worthless.
4. Geƫ ng sales people to prospect, rather than showing
them how to prospect, is sales management’s greatest
5. Eighty percent of new sales people, who terminate in Year
1, do so due to lack of prospecƟng acƟvity.
6. Forty percent of veteran sales people experience one
or more episodes of Call Reluctance severe enough to
threaten their sales careers.
7. Assessment of exisƟng willingness or reluctance
to prospect is the starƟng point in improving sales
Aside from the issue of “fit” -- which has to do with
whether or not a person is suited for a sales career in the
first place -- prospecƟng is the most important behavioral
variable that affects success in sales. However, prospecƟng is
not about the “how to.” My own experience in working with
hundreds of successful and not-so-successful producers boils
down to this simple truth: ProspecƟng is 80% moƟvaƟon and
20% skill. ConverƟng (i.e., presenƟng and closing) is 80% skill
and 20% moƟvaƟon. Conscious or unconscious resistance to
prospecƟng for new business is a complex behavior that has
many underlying roots.
In numerous research studies over the last two decades,
psychologists studying successful sales behaviors have
learned that skills and knowledge are the easier elements
to idenƟfy and develop. Though essenƟal for peak
performance, they are by themselves not suffi cient for
breakthrough results. Skills and knowledge are the “Ɵp of
the iceberg” so to speak. The unseen structure below the
waterline is more diffi cult to idenƟfy and develop. They are:
(a) self-image, (b) traits, and (c) moƟves. These “submerged”
aƩributes are actually the underlying characterisƟcs that
lead to longer-term success.
In our consulƟng and sales coaching pracƟce, we
generally acknowledge two key (interrelated) modes that
govern sales success. The first variable is simply a person’s
“internal wiring.” This is the “Strengths Profile” that
characterizes how a person acts within a work/professional
context. The second centers on prospecƟng behavior,
which is equally idenƟfiable and measurable. ProspecƟng
reluctance can be reduced to three components: thoughts,
feelings, and acƟons. AcƟons are generally accompanied
by thoughts and feelings, which are in turn learned and/or
geneƟcally predisposed. For the most part, call reluctance
usually involves learned negaƟve emoƟons like fear. The
good news is that it can also be unlearned and corrected --
some types easier than others to “cure.”
These two “bookend” modes, Strengths and Sales Call
Reluctance, provide a framework (i.e., the chassis) for
selecƟng, developing and training sustainable and successful
sales performance.
What are the roots of “sub-opƟmal prospecƟng” aka Sales
Call Reluctance?
by Monte Rose
ProspecƟng is the most important behavioral
variable that affects success in sales. However,
prospecƟng is not about the “how to”.
...ProspecƟng is 80% moƟvaƟon and 20% skill.
ConverƟng (i.e., presenƟng and closing) is 80%
skill and 20% moƟvaƟon.
June 2008
“Forward Thinking in Reverse”
While most people have a predisposiƟon to one or
more forms of prospecƟng reluctance, this does not mean
that they are call reluctant. Sales call reluctance (SCR) is
an “aggregaƟon of emoƟon-based escape and avoidance
behaviors parƟcularly associated with the act of iniƟaƟng
first social contact.” This concept was developed by Dudley
and Goodson in the 1970’s. They can be differenƟated from
broader concepts like social anxiety by the type, degree,
onset and limited specific nature of the symptoms. Though
environments differ significantly, success in sales invariably
requires generaƟng new business, translaƟng into increased
Contact iniƟaƟon with prospecƟve buyers (and, in
our business, professional referrals) is considered a core
competency. Failure to prospect consistently and effecƟvely
for new business is the most cited reason for poor sales
producƟvity. Studies linking call reluctance and outcome
measures such as commission dollars have shown that
contact iniƟaƟon with prospecƟve buyers, or lack thereof,
can disƟnguish high and low sales producers with up to 73%
accuracy. Other factors become equally criƟcal, if not more
important, once first contact is made. However, iniƟaƟng
contact with prospecƟve buyers must occur – consistently
– before sales can be made. This fact remains regardless of
product sold, sales training provided, producƟon incenƟves,
sales support, or even market condiƟons. All of the above
factors can be present, but if there is a call reluctance issue
sales success will not be sustainable.

In the early days of the RM business, prospecƟng was
not the limiƟng constraint. There was a lot of low hanging
fruit, and it was relaƟvely easy to “get to the kitchen table.”
Most successful people differenƟated themselves with their
kitchen table skills. Nowadays, the Ɵde has turned. People
who have an ingrained disciplined system that allows strong,
consistent and ethically appropriate prospecƟng will survive
the tough Ɵmes ahead.
Any effecƟve training program to improve sales
producƟvity begins with an accurate diagnosis. In our
coaching intervenƟons, we start with a much more
comprehensive on-line assessment, which then becomes
the blueprint for improving the skills and behavioral
competencies around successful prospecƟng. Without
Finally, a robust, interactive
online resource exclusively
for Reverse Mortgage Loan
Join NARMLO and dramatically impact
your reverse mortgage business.
Ɣ Get resources and information geared
towards reverse mortgage Loan Officers
NARMLO Reverse Mortgage Today
Monthly Teleseminars and Webinars
Discussion Forum
Marketing Tools
Lender/Lead/Service Resources
Educational Materials for your seniors
Ɣ is the place to find answers to
all of your questions
Ɣ offers an interactive
discussion forum where you can exchange
ideas and express constructive opinions with
reverse mortgage Loan Officers throughout
the world
“Studies linking call reluctance and outcome
measures such as commission dollars have
shown that contact iniƟaƟon with prospecƟve
buyers, or lack thereof, can disƟnguish high and
low sales producers with up to 73% accuracy.”
June 2008
effecƟve idenƟficaƟon and valid/reliable assessment,
effecƟve counter-measures cannot be introduced. Though
sales call reluctance is a “normal” phenomenon present
even in the best producers, research has shown that it is the
single most important variable (i.e., the proverbial “weak
link”) in determining whether you are earning what you truly
Sales call reluctance (SCR) is an “aggregaƟon of
emoƟon-based escape and avoidance behaviors
parƟcularly associated with the act of iniƟaƟng
first social contact.”
About Monte Rose: Monte Rose has helped hundreds of
seniors obtain a reverse mortgage during the past 17 years.
He is an accomplished speaker and widely quoted industry
expert, appearing in financial publicaƟons and naƟonally
syndicated media. He was head of naƟonal retail sales for
Financial Freedom Senior Funding CorporaƟon. Monte is a
CerƟfied Senior Advisor and a CerƟfied Strengths Coach with
Gallup University. For more informaƟon, call 800-516-0545
or email
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Manufactured actured M Hou Housing sing
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Foundat F ion
nspections, Upgrades n
& Repairs &
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Certificatio ons o C
Tradition Title Agency
Serving New York State with
Knowledge, Experience and Trust
We Help You Grow Your Business
Providing Reverse Mortgage Services for Over 12 Years
June 2008
“Forward Thinking in Reverse”
Gas, Food, Baseball, Apple Pie and Chevrolet
by Sam Collins
I would like to take you back in
Ɵme. Close your eyes and imagine
being born in 1928. You have lived
your life and experienced World Wars,
the Great Depression, new poliƟcal
changes, turmoil, healthcare, advent of
welfare, social security, the Charleston,
Chubby Checker, Elvis and now weather
paƩerns that change like the wind.
Now imagine, it is the year 2008. You have just turned
80 years old. Looking back, you could never imagine having
lived to such a ripe old age. It is now Ɵme to sit back, relax,
and not have to worry about all that other stuff. Let the
youth of the world handle all the trivia. It is Ɵme to enjoy
your golden years.
It is diffi cult not to imagine why our seniors are cynical
and scared about their everyday lives and their financial
futures when you consider that in 1928 the cost of gasoline
was probably no more than 10 cents (including taxes). Even
in 1970, my first business was a gas staƟon and the cost
of gasoline was 28.9 cents per gallon. My customers were
complaining when it went to 30 cents. So, imagine the awe
and fear of our seniors paying $4 + for a gallon of gas.
Milk used to be delivered to our doorstep every morning.
I used to love to be the first one to bring the glass boƩle
product in the house and I even cheated by chugging down
the cream that rose to the top. Here is the kicker, the milk
that was delivered was only 39 cents per gallon. Now
consider milk is at or near $4.00 per gallon. So much for a
quick bowl of cereal in the morning.
Here is the GOOD NEWS! Eighty-five per cent of boomers
born aŌer 1946 own their homes. The American dream
was founded and built around home ownership. Thank
goodness, home ownership is one of the best possible
investments that most Americans could make. If not for
home ownership, many would have never saved enough
money nor accumulated a nest egg for their reƟrement
or shorƞall they are experiencing now because of out of
control rising gas, food and healthcare costs. Many matures
are now beginning to consider their home as a financial tool,
rather than the Archie Bunker days of mortgage burning and
leaving everything to the heirs.
This May, consumer confidence hit a 28-year low. Many
seniors are starƟng to take note of the different financial
soluƟons to make up for the shorƞall they are experiencing.
There are several products on the market that address the
“unlocked” asset value. One product uƟlized by matures is
a reverse mortgage and interesƟngly 74% of boomers are
aware of a reverse mortgage.
As a reverse mortgage loan offi cer, manager, or key
execuƟve, it is Ɵme for you to reconsider how to market
to your seniors. Keep in mind, we are not in the reverse
mortgage business, we are in the markeƟng business. Your
job is to get the phone ringing. You need to talk to your
senior clients before you can reach out and help them.
Being in the reverse mortgage business is a privilege. You
have the ability to dramaƟcally impact lives.
Cost EffecƟve MarkeƟng Strategies
You too may be experiencing a Ɵght budget. But now is
not the Ɵme to cut back on your markeƟng. Cuƫ ng back
and reducing budgets is one of the biggest mistakes made in
all businesses. Now is the Ɵme to increase your markeƟng
acƟviƟes, however; with budgets incredibly Ɵght, spending,
more money (or even the same amount as you used to) on
markeƟng is probably making you think twice about how you
spend your hard earned dollars.
I hope some of the following strategies will help you in
your decision making process and boost your lead generaƟon
and originaƟons.
“In 1928 the cost of gasoline was probably no
more than 10 cents. Even in 1970 ... the cost of
gasoline was 28.9 cents per gallon.”
June 2008
1. Revive “old” leads: Chances are you spent a preƩy penny
on those leads that fell by the wayside. Go back through your
files and contact those old leads which at one point seemed
unworthy of your Ɵme. I bet you will be surprised by how
many of the “old” turn into new leads!
2. Take advantage of “FREE” offers: There are many markeƟng
consultants that offer free introductory consultaƟons during
which you can gain a lot of insight and informaƟon to help
move your business forward. Why not take advantage of their
offers? What do you have to lose?
3. Research Local Senior Centers: Wouldn’t it be nice to have
a presence where your seniors hang out? Consider sponsoring
an event, providing refreshments, or placing educaƟonal
materials in local senior centers.
4. Use Feature/Benefits Statements in your MarkeƟng: A
feature is something about your product that would prompt
your prospect to want to buy. It could be how your product
would reduce costs, save Ɵme, save a house from foreclosure,
etc. Most people stop here in their markeƟng. I suggest you
take this one step further and give your prospect the WIIFM
(what’s in it for me). This is the statement that matches up
your feature with the prospect’s needs, thus establishing
benefit. The easiest way to begin a benefit statement is: What
this means to you is...
5. Have a Follow Up System: We have already established
how expensive it is to buy or generate leads...why not treat
those leads with a liƩle respect and use them to their fullest
potenƟal. The American dream is sƟll alive. Always do the
right thing for your senior clients and success will follow.
About Sam Collins: Sam Collins is the President of Sam
Collins MarkeƟng, LLC and Founder of NARMLO, the NaƟonal
AssociaƟon of Reverse Mortgage Loan Offi cers. NARMLO
is a web based naƟonal sales, markeƟng, training, and full
resource center created exclusively for Reverse Mortgage Loan
Offi cers. Not a NARMLO member yet? Go to
to join today!
“If not for home ownership, many would have
never saved enough money nor accumulated a
nest egg for their reƟrement or shorƞall they are
experiencing now because of out of control rising
gas, food and healthcare costs.”
June 2008
“Forward Thinking in Reverse”
David Cesario
1st Reverse Financial Services, LLC
410 Quail Ridge Drive
Westmont, Illinois 60559
(877) 574 - 1000
America’s Recommended Mailers, Inc.
1680 S. Hwy 121, Bldg. B
Lewisville, TX 75067
(800) 992 - 2722
10801 Thornmint Rd
Suite 250
San Diego, CA 92127
(877) 229 - 7799
Reverse Mortgage Servicer
3900 Capital City Blvd
Lansing, MI 48906
5 Cherry Hill Dr
Suite 200
Danvers, MA 01923
(800) 281 - 6200
Jerry Wagner
Ibis Capital, LLC
2101 Pacific Avenue
PH 701
San Francisco, CA 94115
(800) 566 - 5077
Lender Lead SoluƟons
3 HunƟngton Quadrangle
Suite 303N
Melville, NY 11747
(800) 562 - 6755
Monte Rose
17100 GilleƩe Ave
Irvine, CA 92614
(800) 516 - 0545
NaƟonal AssociaƟon of Reverse Mortgage
Loan Offi cers
22 Polly Drummond Hill Rd.
Newark, DE 19711
(877) 2NARMLO (877) 262 - 7656
Valerie VanBooven
Next GeneraƟon Financial Services
Reverse Mortgage NaƟon
3301 Boston Street
BalƟmore, MD 21224
(888) 973 - 8377
David BancroŌ
Omni Home Financing, Inc.
901 Calle Amanecer
Suite 150
San Clemente, CA 92763
(949) 276 - 2300
2982 Ora Avo Terrace
Vista, CA 92084
(800) 909 - 1110
John Lunde
Reverse Market Insight, Inc.
Aliso Viejo, CA
(949) 429 - 0452
Gretchen Williams
Reverse Mortgage Directory, LLC
(888) 412-5557
Reverse Vision
3310 Pollock Place
Raleigh, NC 27607
(919) 834 - 0070
Smart MarkeƟng
6722 Vista del Mar
Suite A
San Diego, CA 92037
(888) 811 - 0208
TradiƟon Title Agency
1991 Union Boulevard
Suite C
Bay Shore, NY 11706
(631) 328 - 4410
Daniel DuplanƟs and Barbara Santner
605 SW First Avenue
Ocala, FL 34471
(352) 482 - 1097
June 2008
Scent of an Industry
by David BancroŌ
We sƟnk. Currently our industry is
giving off an odor that does not boƩle
well. It is being packaged at the local
media plants and sold to anybody with
a nose who wants to point blame. The
stench is causing the public to make
unfair comparisons to the recent
mortgage mess and to correlate the
roƫ ng odor of a sub-prime carcass with
the Reverse Mortgage Industry.
It is unfair to share the same room but we have to, it is
the only one in the house. What we need is a mixture of
apple-cider vinegar with a touch of tomato juice, the same
concocƟon I used on my two labs that mistakenly thought a
criƩer dressed in black and white was friendly. We can bathe
in this mixture as long as our supporƟng organizaƟons refute
the poliƟcal accusaƟons on our industry and address the
psychology of the consumer during this recession. We need
to calm down this demonizing by standing together and hold
the hose to wash clean the negaƟvity.
It is Ɵme for the organizaƟons which support this
industry to step up and do a feel good, public relaƟons,
markeƟng and television campaign to awaken the spirit. We
need more great stories of lives being changed and homes
being saved. It will feel like warm towels from the dryer and
will help us get the much needed posiƟve vibe that is long
overdue. We need our poliƟcal leadership to embrace the
Reverse Mortgage answer, call it a soluƟon and increase the
support from the senior associaƟons. This will counter the
naïve momentum, swing the pendulum back and create a
new reƟrement sensaƟon.
It is Ɵme for those of us who are serious about making
it in this market to do a beƩer job in all aspects. As leaders
we need to take care of our companies, train our people
right and bring out the posiƟve we are doing. Together,
let us cut the sƟgma of failure seniors seem to carry about
Reverse Mortgages and make this choice the soluƟon. Keep
telling the good story and do not allow this industry to be
compared to the smelly trash can of the recent mortgage
We can all recognize the current “scent of our industry”
and we need to stop pretending the smell will simply go
away on its own. Reverse Mortgages are definitely not
accepted as a savior by the masses, but they are an answer
for many, as well as a viable soluƟon for the reƟrement
community. Let us raise our expectaƟons for this year and
reach out not only to the seniors we can help, but also to
those within our own industry who can make a difference.
About David BancroŌ: David BancroŌ is the President of
OmniHome Financing Inc. Mr. BancroŌ is a leading industry
expert in the originaƟon of Reverse Mortgages, FHA & VA
Government Loans and uses his extensive experience to
help promote the Reverse Mortgage industry. OmniHome
Financing was founded by Mr. BancroŌ and his partners
in 2002 to specialize in Government lending and is one of
the largest originators of HECM Reverse Mortgages in the
The Last Word
Lender Lead Solutions provides the
stability of a financial giant.
Our parent company, the KBC Group, is a Belgian-based bank with a highly-regarded reputation as a financial
leader. With $41 billion in market capitalization* and a AA-rating, KBC’s strength gives LLS the ability to fund our
own loans, which allows us to offer unique products that are perfect for today’s market conditions.
To contact Lender Lead Solutions call 888.775.3631 or
visit our website at
*As of March 17, 2008. Lender Lead Solutions is a division of World Alliance Financial Corp., a member of the KBC Group. ©2008 World Alliance Financial Corp.
Partner with the leading Reverse Mortgage wholesale lender and watch your business grow.
But don’t just take our word for it. Come and see for yourself.

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