The division launched as One Reverse Mortgage Services (ORMS) with the goal of allowing loan officers to spend more time working with clients and less time worrying about the back office needs to close a reverse mortgage.

Partners of Quicken Loans Mortgage Services have started to receive inquiries about reverse mortgages, so the new division is meant to assist them in helping their clients through the process. The customer is referred to ORMS and they handle all the loan processing and funding.

While ORMS is not meant to serve as a wholesale or correspondent channel, Gregg Smith, president and chief operating officer says the company is planning to enter the space.

“We have a strategic plan to enter wholesale and a couple other channels as well,” he said during an interview with RMD.

Smith wouldn’t give many details about the expansion, but did say he is confident it will happen within the next 12 months. ”Wholesale is a natural maturing process and we have the infrastructure and know how [to do it],” he says.

Prior to being acquired by Quicken in 2008, the company ran a wholesale division as Reverse Mortgage Lender Network, so it has a history in the space. After the acquisition, the company made the decision to shut down the channel and focus on building retail which has grown into the third largest lender in the country according to Reverse Market Insight.

With a new office in San Diego and plans to add another 30 employees on the operations side, One Reverse is building up the staff necessary to add wholesale and correspondent channels.

“The industry as a whole would welcome a new entrant and [we're confident we can take] our unique approach of how we originate, and translate that to wholesale in an amazing way,” Smith said.

The reverse mortgage lender has nearly doubled the size of its headquarters to adapt to its continued growth. The increase in loan volume for the reverse mortgage lender hinges on the success of its team, said Gregg Smith, One Reverse president and Chief Operating Officer.

“We had 20 licensed bankers in 2007 and now have more than 130 with immediate plans to hire more,” Smith said. “Our operations team has also grown from 16 team members in 2007 to more than 50 today. We expect to hire 20-30 additional team members this year.”

The new, San Diego-based offices align with the company’s “aggressive” growth plans, company executives said.

“We’re growing in all facets of the company,” Smith told RMD of the San Diego facility as well as its Detroit offices.

“This new space accommodates our growth, which although aggressive, has been accomplished by maintaining our focus on high-quality client service,” said Richard Mandell, Chief Executive Officer of ORM. “Our licensed bankers are knowledgeable about reverse mortgages and are experienced working with seniors, which has allowed us to grow so rapidly.”

The San Diego offices with bright interiors and white boards to encourage creative thinking now mirror the style of the Detroit offices, which were new to One Reverse in late 2011. The Detroit-based team continues to build its team with an eye toward growing loan volume.

“We are disciplined to our plan,” Smith said. “Our focus is to get to 500 loans per month.”

Purchased by Quicken in 2008, One Reverse mortgage has grown to become the No. 2 retail lender, closing 4,858 loans in the last 12 months ended in February 2012 according to data from Reverse Market Insight.

Written by Elizabeth Ecker

The Times article goes on to describe why reverse mortgage companies have found success in working with celebrity representatives, outlining the dire financial situation for many of America’s seniors and the role model that many see in former actors. Fred Thompson, interviewed for the article, told the Times of his reverse mortgage endorsement for American Advisors Group:

“I’m not acting,” [Thompson] said of the ads, which often feature him walking down a street or sitting in a flag-draped office. “I’m just looking right into the camera and telling people as honestly as I can why reverse mortgages might be right for them.”

Mr. Thompson said the best customer he recruited was his 91-year-old mother. “She requires a good deal of care and wants to remain in her home,” he said. “I got tired of her agonizing every time how dependent she was one me. One day she asked, ‘What about this thing you talk about on TV?’ It was very helpful going through the process of getting a reverse mortgage with her.”

According to the Times, the “new star turn” is a result of the changing demographics as Americans live longer and face big decisions about health care and finances. The report includes input from executives at One Reverse and AAG on the process of working with Henry Winkler and Fred Thompson, and how they help to correct reverse mortgage misconceptions.

Read the New York Times article.

Written by Elizabeth Ecker

The site, which says it is directed at the already immense, and rapidly growing, baby boomer generation, promotes the premise: “You’re just older. You’re not dead.”

The One Reverse partnership formed based on work its parent Quicken Loans has done with another site, Fathead, under the same owner. Mickey Charles, who is also president and CEO of The Sports Network, which receives 1.7 million visitors monthly, according to data from Quantcast, has several sites under way, including the new boomer-facing site. One Reverse advertises on the site, provides reverse mortgage-specific content, and is Older Not Dead’s preferred reverse mortgage provider.

“The company that started the Older Not Dead site manages a few other sites and some within our family of companies have had great experience with them,” Richard Mandell, One Reverse CEO told RMD. “When the Older Not Dead site came up, it was a good introduction for us.”

Mandell has authored articles for Older Not Dead and will contribute one to two times per month.

The partnership is not intended to be a leads driver, but the opportunity may emerge as the site gains traction, company execs say.

“We’ve gotten a few leads, but nothing significant yet,” said Kim Schachinger, vice president of marketing at One Reverse. “Our involvement initially was not to get leads, but participating in a site that makes sense for our demographic in a way we can be educational to people. Once this gets some exposure, then we will be looking to get leads.”

Older Not Dead was founded by Mickey and Roz Charles of The Sports Network as a dedicated resource for the 80+ million baby boomers in the U.S. today.

Written by Elizabeth Ecker

Those advertisements often hinge on the voice of a celebrity spokesperson, as in the case of Robert Wagner (Urban Financial) or Fred Thompson (American Advisors Group), and on the testimonials of reverse mortgage borrowers.

While lenders are consistently adapting their messages to reach consumers, the market may now be coming around to the products enough for lenders to move toward a more brand-focused approach.

American Advisors Group, which is rolling out a new campaign featuring borrower testimonials, notes the turning point.

“AAG didn’t use testimonials previous to this new spot because we felt it was more important to build brand awareness and credibility before showing our happy customers to other consumers,” says Teague McGrath, director of marketing for AAG.

Other companies are altering their campaigns as well.

In a male-dominated reverse mortgage TV world, One Reverse is taking a step in a different direction. The San Diego, Calif.-based lender recently landed I Dream of Jeannie star Barbara Eden to appear in a commercial coming this fall.

“In many cases, women drive the financial decisions of the household,” Schachinger says. “As a result, it made sense to test women decision-makers.”

Education, however, will remain a cornerstone, Schachinger says.

“There has been a good amount of reverse mortgage advertising in the past few years helping to educate consumers, [but] many of them still ask a lot of questions and require additional attention to make them comfortable with the product. The objective of our advertising is to not only educate but reinforce One Reverse Mortgage.”

With education as the cornerstone, the message of established brands such as those represented by Robert Wagner remains.

“Over the years, the Wagner campaign has been the flagship for educating consumers on the potential benefits of a reverse mortgage,” says Jason Levy, Head of Retail Division and Brand Management, Urban Financial Group. “Urban’s brand mission is to not only attract a potential customer with a call to action message, but rather have the senior community call because of our brand educational awareness.”

But with that education under way, comes a new opportunity to shift practices, as AAG is doing.

“We always had this spot in mind as part of a staged brand awareness strategy,” says McGrath of the new campaign. “Build a sense of who AAG is, back it up with good service levels and origination numbers proving we walk the walk, then follow up with borrowers who have had a positive experience with an AAG and showcase this to the public. It is proving very successful for us.”

The education is causing AAG to reassess some past strategies as well.

“People have a much better understanding of the product now than they did even 12 months ago. It means the DVD and brochures we send out aren’t as relevant as before.”

Written by Elizabeth Ecker

Eden, the actress who played Jeannie in the 1960s television series I Dream of Jeannie, was in Detroit this week on location for a reverse mortgage commercial for One Reverse Mortgage, a division of Quicken Loans.

Filmed at the Detroit Science Center, the commercial stresses the idea that, “these are the years when you want to enjoy time with your family with the peace of mind knowing that you are financially secure,” a One Reverse spokeswoman told RMD in an email.

“Barbara Eden, being a respected actress and senior in our target demographic, was a perfect fit for this commercial. She has been a joy to work with,” said Richard Mandell, CEO of One Reverse Mortgage.

Eden joins the ranks of several well-known male celebrities to appear in reverse mortgage commercials lately including Fred Thompson for American Advisors Group, Henry Winkler for One Reverse, Robert Wagner for Urban Financial Group and Pat Boone for Security One Lending.

Written by Elizabeth Ecker

The San Diego-based reverse mortgage division of Quicken Loans is the largest reverse-only lender, and upon the recent exits of Wells Fargo and Bank of America from the business, will assume the second spot for reverse mortgage volume behind MetLife bank.

“We pursued the Ginnie Mae HMBS certification because it provides us with an incredible flexibility when originating loans,” Gregg Smith, president and chief operating officer of One Reverse told RMD in an email. “It also allows us the ability to retain servicing on those loans so we can ensure that after closing, our clients maintain the same high level of service that One Reverse Mortgage is known for.”

While Smith says the company does not have plans in the near term to enter the correspondent or wholesale markets, he says the HMBS program is a “must” if the company decides to compete in that space in the future.

For now, the company is seeing the GNMA approval as a growth opportunity, in allowing it to leverage the relationships it has formed with the investor community.

Currently, One Reverse operates a Detroit-based call center of 100 originators, and told RMD in May that it has plans to increase that number to 125 by year end.

“The HMBS program allows us to secure the best possible pricing for our clients, which was the primary reason we decided to undertake the lengthy certification process,” Smith said in a statement. “It is the natural next step in our mission to provide our clients with the best service and pricing in the reverse mortgage industry.”

The company, which will now bundle and sell reverse mortgage securities, is licensed in 46 states with plans to expand nationwide. It joins several other Ginnie Mae issuers in the industry, and is one of the first lenders to receive approval following changes in net worth requirements announced by Ginnie Mae earlier this year.

One Reverse closed 3,241 reverse mortgage loans in 2010, according to data from ReverseBase.

Written by Elizabeth Ecker

Through its “MyQL Mobile” app, Quicken clients will be able to apply for loans from their iPhone, iPad or iPod Touch. The app guides loan applicants from the application to the closing table and all steps in between.

“At a time when consumers expect to have instant access and visibility to all of their purchasing decisions, it only makes sense that we offer our clients a new window into one of the most important purchasing decisions they will make to reach their financial goals,” said Bill Emerson, Quicken Loans CEO.

Features of the application allow users to access real-time loan status updates, reach a home loan specialist and retrieve loan documents needed to begin the loan process. By taking a picture of their loan documents via iPhone, users can then submit the documents directly.

“MyQL Mobile is a milestone in our history,” continued Emerson. “We became the first mortgage provider to offer home loans in all 50 states from centralized online web centers, as well as the first to adopt e-signature technology. Now, with our new mortgage app, we become the first to offer the easiest and most efficient mortgage process ever available to consumers.”

In another recent effort to streamline the mortgage process through technology, the Mortgage Bankers Association urged the Federal Housing Administration to permit the use of e-signatures for all mortgage forms required by the agency.

When asked whether the app would encompass reverse mortgages, a Quicken spokesman said that while the option was considered, it will not be offered in the foreseeable future.

View a demonstration of the Quicken app.

Written by Elizabeth Ecker