Reverse

Spotlight: Refining Your Strategy: Tips for Successfully Bringing a Loan to Close

Written by Jessica Guerin, as originally published in The Reverse Review.

Reverse mortgage specialists work to educate seniors about a unique financial product that could help them achieve a more secure retirement. It’s a sensitive subject for many seniors, and HECM professionals must display tact, patience and compassion when talking with a prospective borrower. It’s a job that requires a special set of skills. So we’ve reached out to a handful of professionals across the country to ask them what they do to connect with their clients. From helping a reluctant borrower to building a relationship rooted in trust, these professionals share their tips for success.

Mike Suits  Capital Mortgage Services of Texas I have found that the main hurdle for many borrowers is the legacy issue. Their home is their greatest asset, so it is understandable that borrowers would be concerned about how a reverse mortgage might affect it. To address these concerns, first make sure you have a clear understanding of what the borrower wants to achieve through a reverse mortgage. It’s important to complete a pre-application Q&A. Through this process, you will get all the information you need to help the borrower decide whether the loan is the right fit for them. Second, it’s very important that you outline the loan’s benefits. Highlight the non-recourse clause and how it will protect their spouse or heirs in the event the loan is called due because of their death or displacement from the property. This is a common hang-up for many borrowers. Third, walk them through the amortization chart. Use this chart to help visually explain the growth of their debt compared with the growth of their remaining equity. I would start with two to three years in the future, and then focus on 10 years out. Finally, try to convert those borrowers who are truly reluctant by letting them talk to people who have taken out reverse mortgages. The ability to have a few past clients available for reference calls is priceless. The client will be able to learn firsthand how a reverse mortgage has helped others.

Steve Sless Bayshore Mortgage When trying to connect with a client, you must convey your passion. Be genuine, be dynamic. If you are able to transmit your passion over the phone, your borrower’s guard will come down, allowing you to establish a trusting relationship. Be sure to listen. In a successful conversation, the client should be doing 75 percent of the talking. Remember that it’s all about patience and trust. In order to successfully move past a client’s initial reluctance, there must be trust, first and foremost. Trust is built by truly getting to know your client. I like to get off the topic of reverse mortgages and try to get to know them better—share stories, find out what is important to them in life, find out what keeps them up at night, their hobbies, grandchildren’s names. This is a relationship business. Without a relationship, you are just another salesperson. If you truly care, your client will be able to tell. Once you build trust, begin the education process. Teach them how our product can be used to positively impact their lives, how it can give them peace of mind. This requires a great deal of patience. Cultivating a relationship doesn’t happen overnight. Recently, I closed a loan with a client whom I first started talking with more than two years ago.

Randy Davis Dollar Bank Our job is to investigate and educate, helping the client find the right solution to fit their needs. Show them how a reverse mortgage fits into their own personal financial plan and how the loan could enhance their retirement years. If the loan is a good long-term, sustainable fit for the customer—and if you have done your job in gaining their trust and addressing their fears and misconceptions—your client will make the decision on their own. For clients who are reluctant, reassure them that it is common and normal to feel that way. I usually give a brief history of the program and then go over how insurance will protect them and their estate. We then discuss why they sometimes see a bad article in the paper. Also, even during a face-to-face meeting to sign the application, I let them know that by signing today, they are not obligated to close on the loan. I tell them that after we go over the program and benefits, if they are not comfortable signing today, we can get together again when they are ready and it is not a problem to do so. I point out that even after the actual closing, they have a three-day right of rescission to change their mind. The bottom line is just be yourself, be honest and be helpful. Listen to their story and see if a reverse mortgage will truly help them.

Mark Draper  iReverse Home Loans When I am trying to connect with a client, it’s essential that I understand them. I listen to everything they say and touch on it in later conversations to show them I was listening, interested and paying attention. I engage them in the process and always let them know they have a solution and I am there for them. If a client is reluctant, my strategy is simple: Wash, rinse, repeat. Address their concerns head-on. Keep it plain and simple, keep it friendly, don’t oversell. Agree, agree, agree—then point out the benefits again and again, until they realize they need the program for their own financial well-being. I do this for however long it takes—hours, days, weeks, months. If you’re having trouble closing, re-evaluate your first impression: Everything from your greeting to your goodbye: how you look, how you sound, how you smell, what you leave them to read. Is it organized and in an-easy-to-follow format, a simple step-by-step process? Or have you left them a job to do, with 100 sheets of paper, DVDs, charts and graphs bursting out of a folder? Keep it simple. Remember to give them the time they need and don’t get bogged down in the technical details. Stick to the emotion and, above all, put on an English accent.

Monte Rose HighTechLending Don’t attempt to close or ask for a commitment before building a solution-oriented partnership through collaboration. If the sales conversation is properly guided, an atmosphere of trust prevails. One objective is to lead the prospect into a “teachable moment.” Such a moment occurs when the pain of staying the same is greater than the pain of change: So, if the prospect becomes paralyzed and unable to make a decision, gracefully ask the following: (1) If you do nothing, will your situation get better? (2) If you do nothing, could your situation get worse? (3) Do you feel the reverse mortgage solution is your best option Collaboration becomes the natural result of this conversation. You can determine and agree upon the best course of action as partners. Everyone wins!

Shannon Hicks Reverse Focus With Financial Assessment now established as the requisite process in originating HECMs, industry professionals can benefit by keeping two points in mind. First, it is more essential than ever that loan officers first build rapport and not focus on product knowledge. A deeper level of trust and understanding must be built prior to delving into the prospective borrower’s financial history and assets. These are highly personal matters that require a personal and empathetic approach. Secondly, just as with traditional mortgages, some borrowers may seem surprised at the level of information required to determine if they are eligible for the loan. Don’t confuse the prospect’s initial reluctance with a refusal, but rather a request for more reassurance and rapport. Some loan officers have trouble closing or getting a commitment. The surprising truth is that most salespeople never ask for the sale itself! The goal is to make several smaller sales leading to the ultimate sale of a signed application. Work on getting smaller commitments to receive a proposal, a phone meeting or face-to-face meeting, HECM counseling and a signed application. Explain that each is a natural step in the process to determine their eligibility.

Marty Appel Security One Lending If I get a name from one of my professional referral partners, I call the prospective client and put them at ease by mentioning the referral’s name. I also open the conversation by asking about the issues that led to the referral. Then I just listen to their story, letting them dominate the conversation. That gives them the opportunity to get their concerns off their chest and gives me chance to understand the reasons they need my help. There is plenty of time for detailed discussion about my products later; their story helps me immensely by giving me the background I need to structure a recommendation designed to meet their needs.

Stan Kassan Christensen Financial, Inc. Following up on leads and referrals is not rocket science. It’s important to maintain good information sheets including any particulars that may strike a chord with the prospect—family illness, ages of grandchildren, deceased spouse’s name, home improvements, university attended, companies worked for, etc. I also keep a file with email addresses of prior contacts. I stay in touch using various methods such as Outbound Engine, letters with pertinent information on reverse mortgages and follow-up emails. While the telephone call is one of our best sources, I find most prospects prefer to see the proposal rather than hear about it. I email most of my proposals and also mail them, just in case. Bottom line: perseverance. Never throw away a lead that doesn’t pan out. Stay in touch; you never know.

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