To ensure that the senior citizens who purchase reverse mortgages understand the appraisal process, AMCs have begun to train and develop customer service teams that specialize in the product. If an appraisal management company can get that piece in place, the opportunity to capture this new channel of business may last for a couple of decades.
According to statistics from the CFPB, 32 million baby boomers, defined as people ranging in age from 48 to 66, own homes on which reverse mortgages could be originated. But just 2 to 3 percent of eligible homeowners have a reverse mortgage, and only 70,000 reverse mortgages are originated each year.
Providing high-quality customer service is critical to increasing this market. Reverse borrowers are senior citizens who have heard about the real estate bubble, have read about financial fraud or have seen the stories on the evening news. It’s no wonder they feel nervous, agitated or even fearful about the product.
To make matters worse, many reverse mortgage borrowers have not participated in a mortgage transaction in years, and some not for decades. In the intervening years, the mortgage process has changed and it may not resemble the one they remember.
Understandably, they tend to be a bit gun-shy and need to be treated like first-time borrowers, with patience, kindness and communication. That approach is already the norm in some forward-looking firms, because they provide formal training to employees on humanistic customer service.
Training is expensive but necessary, and ensures that customer service representatives understand reverse mortgages and can explain how the appraisal process works.
For instance, a reverse mortgage division team member will explain to the borrower that the inspection will take about 30 minutes, depending on the size of the home. The borrower wants to be assured that the appraiser is licensed and insured and also might want to go over the
process of what happens after the inspection. Once the borrower feels comfortable, the team member will schedule the appraisal.
So far, few AMCs have invested the resources required to train and develop a dedicated reverse mortgage customer service team. Among those that have, most train customer service team members in one of three specialties:
Processors: They are the initial and single point of contact between the AMC and the borrower. Their job is to reach out to homeowners, answer questions, provide any requested information and collect the appraisal fee payment.
Account managers: They communicate with appraisers and schedule the appraisal. They understand that it
is more important than ever to hire a local appraiser, one who has experience in reverse mortgages, because it makes the borrower feel confident and relaxed.
Client relations managers: They work with lenders and relay to the team any concerns or special requests, such as completing the appraisal and returning it to the lender a day earlier than normal.
In many cases, the notes the representatives make from their conversations are entered into the AMC’s technology platform and alerts are automatically sent to team members. Although each team member has a specialty, everyone is cross-trained in each area.
The work a skilled, experienced, humanistic customer service representative performs to educate the borrower ensures that client timelines are met, and this builds a foundation for winning additional business in the future. The discussions between the representative and the borrower are an opportunity to bond, letting the client know that the AMC cares and, above all, representing the lender in a positive light.
