For a product that has seen minimal guideline changes since its creation in 1987, the HECM has seemingly changed overnight. The pitches our niche industry has relied on need a tuneup, and now that we have an increasingly technology-savvy consumer, so do our basic communication skills. To enhance our approach, it may be worthwhile to explore some of the many challenges facing originators in today’s market. Perhaps a closer look can help us redefine an ever-growing and evolving demographic: the “senior” citizen.
What Is a Senior?
Let’s begin by defining (or redefining) the senior borrower.
Many people have a different definition of the term “senior,” but most organizations define the category as an age group that spans at least 40 years starting at the age of 50. Some dictionaries describe widespread usage of “senior citizen” for retired people over the age of 65, however, with the average age of retirement creeping toward 67 according to the AARP, even basic assumptions are evolving to meet the economic strains of recent years.
Age is no longer a defining characteristic, but rather merely qualifying; our definitions of a 62-, 72- and even a 92-year-old are as outdated as the life expectancy tables used to calculate the TALC. Now more than ever the reverse mortgage is the tool that allows “senior” citizens to remain in their homes, live economically independent lives or even knock off one or two items from a remaining bucket list.
For any originator who’s recently found success with Internet leads, recognizing the increasingly savvy senior client has proven to not only be lucrative, but also a requirement to remain competitive in an environment of case transfers and competing offers.
So how do you redefine the idea of a senior? Take everything you know and believe simply expand it. Acknowledge the senior with an active social media presence, but be prepared to arrange a notary or overnight delivery to pick up that last incorrectly signed disclosure for the clients who still don’t have a working Internet connection. The best way to communicate with a senior is to eliminate assumptions and stereotypes and build a relationship based on their terms and comfort levels.
This is where the reverse mortgage professional comes in.
Key Elements of Communication
Some key elements for communicating with seniors who are thinking about a reverse mortgage are:
No.1 Listen & Encourage questions
No.2 Validate
No.3 Respect
No.4 have Patience
No.5 Don’t make assumptions
No.6 Keep communications brief, clear and direct
No.1 Listen & Encourage questions
When reading this, if your first inclination is, “I always listen to my borrowers!” then this section is most certainly for you!
One of the primary complaints expressed by seniors is that today’s professionals do not listen to them. Some studies have suggested that even when they (or we) do listen, we have a tendency to interrupt within 18 seconds.
Older adults have valuable information to offer, but this information may not be shared if the loan officer appears to be uninterested or too busy, or fails to request the information. Concerns, questions or misunderstandings about financial information, insurance plans or processing instructions may not be raised and addressed, thus contributing to subsequent complications and miscommunications.
Asking seniors open-ended questions has the potential to elicit useful information, assess the level of reverse mortgage literacy, create an active dialogue between the loan officer and senior (rather than a monologue from an active professional to a passive senior), and ultimately improve outcomes.
No.2 Validate
Successful communication involves establishing common ground: Speakers and listeners must agree that information is mutually understood and accepted as relevant to shared goals.
Common ground is more likely to be achieved when the speaker seeks—and the listener provides—explicit evidence that presented information is understood. Actively seeking verification of listener comprehension affords the speaker an opportunity to clarify the intended message if needed and tailor the information to the listener.
Verifying comprehension is especially important when communicating with older adults. Older listeners may be reluctant to interrupt a conversation to indicate that they do not understand.
For example: “I imagine you’re a little worried about this financial process. I’ve given you a lot of information. It would be helpful to me to hear your understanding about your reverse mortgage application.” This approach is preferable to a yes/no approach (“I’ve given you a lot of information. Do you understand?”) or a directive teach-back approach (“It’s really important that you do this exactly the way I explained. What do you understand?”).
No.3 Respect
Younger people sometimes address older adults in a style of speech characterized by the use of simplified vocabulary (e.g., only using short words), endearing or diminutive terms (e.g., “sweetie,” “cutie”), and exaggerated intonation (e.g., unusual stress on certain words, singsong pitch variation).
This style of speech may be based on a desire to express caring or sympathy for the older person; conversely, it may be based on a stereotype that all older people are mentally impaired in some way. In either case, this style of speech is viewed negatively by the majority of older adults, who equate such “baby talk” with being treated like a child.
Also called “elderspeak,” this type of communication may make some older adults feel disrespected and powerless and can lead to actual physical health consequences. Among older adults with Alzheimer’s disease or other forms of dementia, being addressed with baby talk can result in more resistance to care and more aggressive behaviors.
* Avoid using terms of endearment (e.g., “honey,” “darling”). It is true that these terms can convey affection, but communication scientists agree that there are other ways of expressing affection and caring that convey the same emotion while not infantilizing the recipient. One example is to use a person’s name while smiling and expressing caring content: “Mr. Smith, would you like me to bring you a cup of coffee?” Addressing a person as “Mr. Smith,” “Mrs. Jones,” etc., is usually a safe approach. Using the person’s first name can be acceptable if you have frequent contact with the person and ask his or her permission (“May I call you James?”).
* Avoid using high and variable pitch. High pitch is more difficult for older adults to comprehend because of hearing problems, and extremely variable pitch produces an irritating tone.
* Avoid using simplified vocabulary. As a general rule, older adults maintain their existing vocabulary or continue to improve it. They have no greater problem understanding complicated words than do members of other age groups, so there is no need to simplify the words you use. 8
No.4 Have Patience
Remember the saying, “Patience is a virtue.” A financial transaction can be complicated even to the most business-savvy individual. When discussing the HECM process, be patient and understand that this is a transaction most seniors may have thought they would never had to do.
Take disclosures, for instance—or, more specifically, re-disclosures. Regulations require that we re-disclose at all valid change circumstances, which can include value, age or even a changing interest rate (i.e., principal limit locks).
Receiving multiple disclosures during the transaction can upset the senior in what may be otherwise considered a smooth and painless transaction. It’s always critical to preface the necessity for re-disclosures at the time of application, explaining the reasons why and how this protects them and keeps them informed about any changes throughout the reverse process.
Another common occurrence, especially for originators newer to the industry, is selling “time”—explaining the process in terms of days rather than milestones. When working with seniors and in many situations over the telephone, an originator’s word is truly their bond. Explaining the reverse mortgage process in terms of milestones (i.e., the completion of the appraisal) rather than in terms of time (i.e., the appraisal will be completed within 48 hours of ordering) ensures that you as the originator don’t violate the trust and rapport you have built with your borrower.
No.5 Don’t Make Assumptions
Stereotypical beliefs about older adults—especially concerning diminished abilities—can lead to inappropriate, perhaps even demeaning, responses toward them. On the other hand, assuming your clients are readily mobile and have access to a printer, scanner or fax can also lead to frustration and damage the rapport you’ve built.
I believe that no two homes are the same (even in a PUD), and that’s even more so the case when dealing with our senior clients.
Try to recognize your own stereotypic beliefs about older adults and acknowledge the possibility that you might be relying on initial perceptual cues to guide your interaction. Adapting your style of communication to the actual, not stereotyped, abilities of the individual will provide a foundation for more effective interactions.
No.6 Keep Communication Brief, Clear and Direct
Although many aspects of functioning are well preserved into late adulthood, short-term (working) memory does decline. Short-term memory is critical in processing complex sentence structures, particularly sentences with embedded clauses. Older and younger adults are equally good at understanding a sentence such as, “The brown dog sat on the rug.” Older adults have a more difficult time with a sentence such as, “The brown dog that I saw running away from the car yesterday sat on the rug.”
Long and complex sentence structures challenge memory because understanding the entire sentence involves simultaneously holding a number of “pieces” of information in short-term memory. Extensive published research demonstrates that older adults have an especially difficult time processing sentences with multiple embedded clauses.
* When conveying critical information, chunk individual pieces of information into separate sentences.
* However, balance your sentences; don’t make them too short. If the sentences are too short, they can provide information in a disjointed and fragmented manner that actually makes it more difficult to tie the pieces together.
