Reverse mortgage professionals are often confronted with a great deal of change that seems to come from all sides. Whether it’s in new regulations handed down by the federal government, new products or services introduced by lenders or the interaction that can come from an advertising campaign, change is a constant. One other change that can sometimes be overlooked is the evolving attitudes of senior clients themselves.
John Luddy, SVP of Reverse Lending at Norcom Mortgage in Avon, Ct., has spent nearly 40 years in the mortgage business and has become a vocal proponent of the reverse mortgage product. He is also a dedicated salesman, oriented to the needs of seniors and the ways a reverse mortgage might be able to help certain people to solve a financial issue. Luddy sat down with RMD Editor Chris Clow for an episode of The RMD Podcast to discuss his industry-favorite “sales tips,” the landscape of the industry in 2021 and how he has observed seniors’ changing attitudes over the years.
Here’s a short preview of the interview you can find in the episode, lightly edited for concision and clarity:
Chris Clow: What are some other examples of tips that you’ve given over the years that you think have resonated with your peers?
John Luddy: One of the things that I always include early in the conversation is that there’s no prepayment penalty. And, quite frankly, that doesn’t mean a lot. 99% of these clients are not going to prepay. But, that speaks to my theory that ‘m not getting them to change their mind or convince them, I’m just validating what they need to know. So many times, you’ll go and see a client who absolutely needs a reverse mortgage, they don’t have any other option. But, they still need something to hang their hat on to be able to justify, in their mind, why they did this. Sometimes by saying, ‘of course, there’s no prepayment penalty,’ you’ll see their body language change. It’s like the iceberg unfroze.
The RMD Podcast speaks with reverse mortgage business leaders, professionals, government officials, and thought leaders to provide listeners with the pulse of the reverse mortgage industry, and all of the business and regulatory realities which affect it. Hosted by Chris Clow and produced by Alcynna Lloyd.