Lenders, brokers and loan officers who specialize in reverse mortgages know all about their benefits and value – a way to access the equity in a home while the borrowers continue to live there.
But just because we know all the ins and outs of reverse mortgages doesn’t mean that our target audience – homeowners 62 years of age or older – knows about them. Advertising is an important step in the reverse mortgage industry, not only so that consumers become familiar with your company, but also so they can learn more about reverse mortgages and their potential benefits.
Obstacles to Reverse Mortgage Advertising
Advertising for a reverse mortgage product isn’t as simple as posting a banner saying “Get a Reverse Mortgage Today!” Any licensed lender or broker looking to advertise directly must be fully aware of the state and federal regulations designed to protect the consumer and the industry from deceptive practices. Specifically, there have been multiple cases of consumers mistakenly believing that reverse mortgages are a government benefit, do not need to be repaid or allow them to remain in their home no matter what. Advertising false statements such as these can result in tremendous consequences, including fines and revocation of licensure.
Best practices for reverse mortgage advertising involve including all required federal and state disclaimers, never using the HUD’s or FHA’s name, logo or seal in a way that suggests its affiliated with the company or product, avoiding all deceptive or misleading descriptions and language, and keeping all advertising material for a minimum of two years.
By following best practices for reverse mortgage advertising, you not only help protect your company from liability but also help consumers learn more about the advantages of reverse mortgages.
Dispelling Myths about Reverse Mortgages
Another obstacle to reverse mortgage advertising is the myths that are often associated with the product. Many are wary of reverse mortgages, mainly due to negative press associated with deceptive advertising. This is why it is imperative that you are straightforward and upfront about all aspects of reverse mortgages – including the risk of the borrower losing their home if they stop paying for taxes or upkeep, and the fact that the loan will have to be repaid after the last borrower passes away or moves out. Of course, borrowers have to undergo approved reverse mortgage counseling prior to getting one, which also helps to dispel any myths and further ensures the borrowers understand what a reverse mortgage requires. Let your marketing help educate them prior to their counseling.
Now More than Ever, Borrowers 62+ Can Benefit from Reverse Mortgages
The popularity of reverse mortgages has seen a huge spike recently, in part because of rising inflation that has caused senior citizens to need additional monthly cash flow. In fact, according to the U.S. Department of Housing and Urban Development’s HECM Snapshot Report, the number of Home Equity Conversion Mortgages (reverse mortgages) originated in July 2022 has increased by 14.94% when compared to July of 2021, despite a rising rate environment.
Many senior citizen homeowners are sitting on a treasure trove of equity, but don’t want to sell their homes and are afraid of losing their homes if they take out a home equity loan. In many ways superior to a home equity loan, with a reverse mortgage, seniors can maximize the use of their home equity and continue to live in their home without ever making a mortgage payment as long as they continue to pay taxes and maintain the property. The loan only has to be repaid when the last borrower permanently leaves the home.
Finding Consumers for Reverse Mortgages
With the increased business that reverse mortgages can bring, where can you find consumers for reverse mortgages? One way, as mentioned above, is through advertising campaigns that keep in mind all the best practices required for reverse mortgage advertising.
If you’re looking for more potential borrowers outside of your traditional realtor referrals and direct marketing channels, reverse mortgage leads are a great way to go. Reputable lead sellers will verify their leads so that you are getting direct information from consumers with an active interest in obtaining a reverse mortgage. These leads are often sold minutes after they are created and verified, which means you can act fast and contact the consumer while their interest is still hot.
Reverse mortgage lead criteria can often be tailored to suit your company’s needs. Common lead criteria include only accepting leads from specific states, for certain loan amounts, and certain credit score ranges. Other criteria may also be available to help you get the leads your company needs.
If you’re interested in learning more about reverse mortgage leads, you can contact RateZip.com, a licensed lead generation company specializing in reverse mortgage and traditional mortgage leads. Contact us at email@example.com or call lead generation specialist Paul Knag at 845-590-0908 today.