HELOC ‘Bomb’ Set to Explode, 15 Boomer Marketing Mistakes

ReverseFocusReverse Focus Weekly Podcast Episode #353

About 3.3 million home equity lines of credit (HELOCs) are scheduled to reset at higher rates in the next four years — and more than half of these are on properties that are underwater, discusses Shannon Hicks in this week’s Reverse Focus podcast.

Homes that were purchased or refinanced near the peak of the housing bubble are likely to remain underwater despite a housing recovery, with Nevada, Arizona, Florida and Illinois set to see the most HELOC resets on underwater properties, according to recent data from RealtyTrac.

There are nearly 30 million Baby Boomers who are age-eligible for a reverse mortgage this year, meaning lenders would be wise to tailor marketing strategies to this group. An expert has proposed 15 marketing “dont’s,” including: Don’t talk down to Boomers, don’t use words like “senior,” and don’t be too practical before touching an emotional chord.

Also discussed, mortgage loan officers are eligible for minimum wage and overtime pay, the U.S. Supreme Court has ruled. The unanimous ruling might not have a dramatic impact on reverse mortgage lenders, but it settles a long-running dispute that pitted some mortgage industry interests against the federal government.

In Reverse Focus’ last story, Hicks highlights the fact that taking out a reverse mortgage could help increase retirees’ annual income by 30%. The statistic comes from a recent Wall Street Journal article, which describes a retirement planning strategy that leverages home equity and delays Social Security benefits.

To listen, login or become a free member to access past and current episodes.

Talking Points:

  • HELOC bomb bigger than expected
  • 15 mistakes to avoid when marketing to Baby Boomers
  • Court rules on overtime pay for loan officers
  • Wall Street Journal: HECM could boost retirement by 30%

Listen now. “Reverse Focus is the ultimate resource for reverse mortgage professionals providing the technology, training and marketing to grow your business. We are your one-stop resource for those committed to taking their business to the next level.” Editor’s Note: These posts are sponsored by Reverse Focus.

Written by Tim Mullaney

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