“It’s a credit to the industry,” says Teague McGrath, director of marketing for AAG. “Networks are less wary and are happy to air our commercials.” McGrath notes the ability of AAG to expand its media buy as well, as a result of its successful leads-generating business. “We can now step it up to that kind of bracket of spend and exposure,” he says.

The spots, which range from focusing on the current economic struggles of many American seniors to testimonial input from a happy AAG customer, will roll out over the course of this week. The economy is one strong point in the commercials, and the incorporation of a testimonial featuring an interview between Sen. Thompson and a customer is another, McGrath says.

The borrower was chosen during a six-week process that started with 120 happy customers and through the process, landed AAG with a World War II veteran who had used his reverse mortgage proceeds in part to travel with his family to some of the places where he had served.

“It was about him and his story and someone who could speak for the product,” McGrath says.

In light of new changes to underwriting that are pending the decisions of many reverse mortgage lenders, including AAG, the company did have to change its disclosures slightly.

“We are the most conservative in terms of what we disclose and disclaim,” McGrath says.

The commercials, which represent the next wave of new commercials following a new Robert Wagner campaign rolled out earlier this fall by Urban Financial and new One Reverse commercials that are on the way, will hit airwaves over the course of this week. View the commercials below, or see them all via AAG’s YouTube channel.

AAG has doubled its reverse mortgage volume this year, according to data from Reverse Market Insight.

Written by Elizabeth Ecker

The rules apply regardless of medium, says James Milano, counsel, Weiner Brodsky Sidman Kider PC, who advises caution when it comes to the distinction between a transactional website and a promotional website.

“Be cautious of transactional websites,” Milano says—those where a senior can submit information or apply for a loan. “There are additional security concerns and rules there,” he says.

From a licensing standpoint, it’s important to list all licensing including state information, the panelists said. While in the past there may have been some grey area with regard to the rules of compliance online, “What was once grey is quickly becoming black and white,” said Milano.

Under the Truth in Lending Act there are certain “trigger” terms that require additional disclosures, such as “rate” and “payment information.” Those may require some additional review. And when it comes to state regulations, state by state, rules vary. In Massachusetts, for example, additional licensing is required for generating leads, beyond the origination requirements for website compliance.

“Most states define ‘advertisement’ broadly and are likely to consider a website advertising,” Milano says. “We think the prudent approach is to treat your website as an advertisement and make sure it adheres to state regulations.”

Be careful about broad statements, especially superlatives, the panelists say. “Stay in your home forever,” is a promise to avoid. As is “no mortgage payment ever.” Technically, there is a payment obligation when the loan becomes due and payable, so “no payment ever” is not entirely true.

Further, lenders may look to adjust language surrounding income and credit requirements. In the past, “guaranteed no income or credit requirements,” may have been true. “It’s going to be an issue going forward,” says Bill Trask, senior vice president and chief counsel for Security One Lending, referencing underwriting changes that the National Reverse Mortgage Lenders Association encouraged last week. “Even though we are calling it underwriting ‘light,’ we are going to look at those qualifications.” Company names and online branding should be consistent across branches, Trask says. Those kinds of differences are something that regulators may tune into, he says.

Finally, record keeping becomes paramount for any web inspection. “Sometimes you have a very short time to deal with this,” says Trask. “Keep copies. You need to be prepared beforehand.” While websites can be very dynamic, the best way to keep a record is to print out the pages and date them, the panel said.

Written by Elizabeth Ecker

For Genworth Financial Home Equity Access (GFHEA), the Internet provides a better way to generate a consistent number of leads for their originators. As a result, it has shifted resources online because of one thing: predictability.

“[The Internet] gives us a lot more predictability in terms of our lead flow,” said Mary Smith, director of marketing for GFHEA during a panel at the National Reverse Mortgage Lenders Association conference in Boston this week.

Online lead generation has been so successful in certain regions of the country, that the company has started to offer surplus leads to its wholesale partners, Smith said. GFHEA’s ability to generate leads online grew significantly when it acquired Reverse Mortgage Guides last year for an undisclosed sum.

With its success online, the company hasn’t turned its back on direct mail, but high costs have forced the company to bring everything in-house. ”We used to outsource our direct mail,” she said, but by bringing it within the company, GFHEA found “response rates are just as good and improved our cost structure.”

No matter the channel, all of the panelists said that lenders need to have a long-term perspective when developing any type of marketing campaign.

“Budget it that way,” said Mike Gruley of 1st Financial Reverse Mortgages. “If the first couple of months are lousy, it could be as a result of the long sales cycle with reverse mortgages.”

Knowing when to pull the plug on a campaign can be extremely challenging as well. ”It’s a real subtle balance between committing and over committing,” Gruley said.

Online is no different; there needs to be a willingness to be in it for the long haul.

“You can’t go into Internet marketing and have a short-term perspective,” Smith said. “You don’t turn on a program and it works [right away].” Lenders must be willing to test a lot of different copy and be focused on results, not what they “think” works best. “[It will take] a lot of time and effort to get it to work.”

Tracking the response rates and loan close ratio is a must as well, the panelists said. Without tracking, it’s almost impossible to measure the results, said Harlan Accola of Envoy Mortgage of Wisconsin, who said the company is spending anywhere from $1,000 to $1,800 to generate a closed loan from a purchased lead.

“We know the shelf life [of our leads] and know you need to be patient but proactive,” he said. “I can’t stress enough the tracking. It’s so important.”

The campaign, formerly owned by Guardian First Funding, which was acquired by Urban’s owner, Knight Capital, showed signs of a reboot earlier this year, upon the acquisition announcement. With the deal closed and seven months of creative work on what will total five new spots, the new campaigns will be hitting the airwaves.

“We interviewed hundreds of previous customers for common themes,” says Jason Levy, head of Urban Financial’s retail division. From those interviews, Levy says, Urban identified two main themes.

“One, borrowers involve family and children. That’s why we did the one with Katie. We’re sending the message that the family can make the decision together.” Second, Levy says, is the improvement in lifestyle that a reverse mortgage offers.

Three additional spots will roll out over the next 30 to 60 days, and will also offer different messages. The new campaign not only serves Urban’s retail brand, but should also play to its wholesale channel of brokers and branches, Levy says.

Exploring new avenues, including the introduction of an adult child into the commercial, is something other lenders have focused on recently as well. American Advisors group launched a new campaign focusing on testimonials earlier this year, and One Reverse Mortgage introduced former I Dream of Jeannie star Barbara Eden into its commercial mix, marking the first major female star to take her place on the reverse mortgage scene.

Lenders say the approach may change in some ways, but that education is still paramount in reverse mortgage TV advertising.

“The educational concept will never change. It’s important to educate first and evaluate whether it is the right choice,” Levy says.

Urban will also ramp up other advertising efforts to round out the new campaign.

“We’re also going to be focusing on building search engine optimization and a few other direct-to-consumer concepts so we can hit on all cylinders,” he says.

View the new commercials on YouTube.

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

What they’re finding is that while a direct sales approach may work for some age groups, a less aggressive and more relaxed approach is best when working with older online users. The key to this approach is the use of search engines.

“This tactic reaches in-market shoppers who are actively researching reverse mortgages,” says Robert Burch, Digital Media Supervisor for Martino Flynn, an advertising, public relations, and digital media company based in Rochester, New York.

Burch, who has experience with reverse mortgage clients, says those clients are finding search engines to be the most effective method in generating leads online.

The success seen from this method has much to do with seniors’ general buying preferences. They may not be ready to make a decision right away, but through their own search, they can better control the buying process.

“Rather than pick up the phone and speak with a sales rep immediately, they can simply fill out a request form on their own schedule and in order to receive more information, or have their local reverse mortgage consultant contact them,” he says, adding that this also gives marketers the opportunity to better “personalize” the information consumers receive by linking to specific items that may interest them.

The prevalent use of search engines for reverse mortgage marketing is evidenced by the current cost of advertising for those products through keywords.

If a senior types the phrase “reverse mortgage” into Google’s search engine, for example, a list of results will pop up, topped by two to three sponsored reverse mortgage ads. The average cost-per-click for the companies who sponsor these ads, according to Google AdWords, is nearly $12.00. If a consumer searches for information on “reverse mortgage lenders,” the sponsored ads cost just over $16.00 per click.

As more seniors turn to the Internet as a source of information for products such as reverse mortgages, advertising through search engines could be worth looking into.

A recent study from the Pew Research Center shows that about 80% of adults regularly use the Internet. Seniors are represented very strongly in this online demographic, with 87% of people aged 56-64, and 82% of 65-73 year olds utilizing search engines such as Google, Yahoo, or Bing.

Plus, Burch says, the seniors who are using online resources are becoming more savvy.

“While they may be a little behind the general population, we expect to see rapid growth with the use of social networks and mobile devices (smart phones, tablets, etc.) over the next two to three years, which will certainly mean that online campaign strategies will continue to evolve,” he says.

The industry still seems to be catching on, according to a recent poll of Reverse Mortgage Daily readers. The poll of nearly 80 respondents found that 34% of their companies spent less than 10% of their budget on online advertising. However, 32% put 10-50% of their budgets toward marketing online, and 16% said more than half of their budget goes toward developing an online awareness among consumers.

While online marketing may not take up a large chunk of reverse mortgage companies’ budgets just yet, Burch believes that they’re increasing spending and will continue to do so as the older adult online audience continues to grow. But, he says, planning is key, and it’s important to remember that the same regulations apply to online that would other media advertising.

“Do not jump in without doing a full assessment of the competition and developing a detailed plan to launch a campaign. Also, be sure to establish up front what you are willing way to pay for any desired action,” he says, referencing whether seniors will merely click on an ad, fill out a form, or actually end up closing on a loan. “And as with any direct campaign, always test and refine your offers, messaging, creative, and landing pages prior to rolling it out and throughout the campaign.”

Editor’s note: The costs for Google Adwords keyword searches have been updated to show U.S. currency rates.

Written by Alyssa Gerace

The 2010 census shows a 31.5% growth in the 45-64 age group, with the number of Americans aged 65 or older at 13%, and a 2011 study from the San Diego LGBT Community Center says there are an estimated 1.5 million senior LGBT Americans. Like the entire population, top concerns among the aging LGBT community include housing issues and maintaining independence, according to The Center’s research.

Several LGBT senior housing communities have broken ground recently with an eye toward the population, and one reverse mortgage lender is also increasing efforts to market reverse mortgages to the same demographic.

A reverse mortgage option may be especially relevant to the 56% of LGBT survey respondents who reported owning or making payments to their own home, and the study mentioned 79% of those surveyed expressing a strong desire to age in place.

The reverse mortgage business comprises a fairly small segment of the overall mortgage market, but The Senior Equity Group loan officer Greg Shearer, who devotes a portion of his marketing to a gay and lesbian demographic, is essentially focusing his business on that population. Shearer sees the gay and lesbian community as one that needs to be served, and has a lot of potential, but, as he says, “is a hard market to crack.” While reverse mortgage endorsements have dipped nationwide in the past three to four years, Shearer says this particular niche market is primarily untapped.

Working from San Diego to Berkeley, Shearer says most of his business comes from refinancing reverse mortgages. However, about 15% of the loans he originates are for gay homeowners, and in the past three years, says Shearer, he’s originated around 22 loans for gay and lesbian couples.

As far as marketing goes, he advertises directly to the gay community with a targeted brochure and website, gayandlesbianreversemortgage.com, through placing ads in gay publications, and at a booth during San Francisco Pride Fest; additionally, Shearer says he gets referrals and sometimes comes across gay homeowners in need of a reverse mortgage just through doing the refinancing side of his job.

Shearer’s marketing materials look like any other for reverse mortgages, except they’re targeted at the LGBT community. Shearer hits on something that’s a strong focus in a 2010 MetLife study, Still Out, Still Aging: large numbers of those in the LGBT community either plan or expect to become, or already are, caregivers for their partners and parents. While this is mostly consistent with non-LGBT boomers, more than three times as many LGBT boomers than their heterosexual counterparts, at 16%, plan to provide care for friends as well. This makes sense, considering 64% of those surveyed said they have a “chosen family,” defined as individuals they are emotionally close to and consider as family, even though they are not necessarily biologically or legally related.

In his brochure, Shearer recognizes the importance of caregiving for loved ones in the LGBT community, saying, “In many cases, the LGBT family member is charged with the care of aging family members. [A reverse mortgage] is a great tool for them as well. If you are struggling with family and personal obligations you can now help yourself live a better life with the financial flexibility of a reverse mortgage.”

Although he hasn’t originated a jaw-dropping number of reverse mortgages for gay homeowners, Shearer believes the volume could increase, as the U.S. population—and therefore the LGBT demographic—continues to age.

“I think that the LGBT market in reverse can be compared to India and Brazil, it’s an emerging market,” says Shearer. “It’s only going to get bigger as time goes on, and hopefully I will be there to satisfy their needs.”

Editor’s note: This article mistakenly stated that Mr. Shearer works out of South Central Los Angeles, when in fact he works from San Diego to Berkeley.

Written by Alyssa Gerace

Titled “In Their Own Words,” the 14-page booklet features close to two dozen testimonials from reverse mortgage borrowers and details their experiences and feedback.

While the process of seeking feedback and creating the materials took close to a year, it’s already working, says Teague McGrath, director of marketing for AAG.

“The response we’ve had has been fantastic,” says McGrath.

In a world of increasing customer feedback online and growing review sites that seek the input of such customers, AAG opted to use the materials as a follow up during the reverse mortgage sales process. That, he said, was a decision not without a lot of thought and planning.

“The biggest issue is fear,” he says of borrower concerns. “Fear of a reverse [mortgage] and fear of the process. Fear of the important financial decision.” The idea behind the project, he says, was to address that fear head-on, by making borrowers feel more comfortable and showing them that others have gone through with reverse mortgages and come out with a positive experience.

After speaking with potential borrowers on a phone call, originators send the booklet through the mail. Featuring photos, background, firsthand accounts, and an introduction from AAG spokesman Fred Thompson, the book also goes hand in hand with a senior advocate program AAG works with.

“We think you have to educate borrowers first,” says McGrath. “Tell them what a reverse mortgage is before you get to this next step.”

Written by Elizabeth Ecker