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INDUSTRY TRENDS

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John Lunde, President and Founder of Reverse Market Insight discusses trends in the Reverse Mortgage industry.

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Besides marketing, originating and researching reverse mortgages since 2001, Atare has authoried a book and more 100 articles on reverse mortgages.  Read his latest blog post.

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Welcome to the Reverse Mortgage Blog

Created by Reverse Mortgage Specialists...for Reverse Mortgage Specialists.

Attention Reverse Mortgage Loan Officers! This is your community. We welcome your participation. We are always looking for interesting articles and other content for this community.

 
Trend Watching - Fixed Rate HECMs
Written by John Lunde- Reverse Market Insight   
Wednesday, 13 May 2009 15:16

Trend Watching - Fixed Rate HECMs

We periodically receive questions about various HECM rate types and how prevalent they are in the marketplace.  One of the specific questions we’ve seen resurrected lately has to do with fixed rate HECMs and just how much market share they have in the reverse mortgage industry.

The short answer is that it’s a surprisingly small amount for anyone expecting a forward mortgage type figure of 50%+, but there are some interesting trends happening lately that make us wonder if this won’t become a more important part of the reverse business, at least in the short run.

rate-type-trends

The chart above displays rate type trends back to 2007, showing fixed rate as bright red, annual adjustables as the dark blue and monthly adjustables as light blue.  Before anyone gets too excited, notice that we’ve chopped off the top 90% of this graph (all monthly adjustables) to show what’s happening in the fixed/annual share of the world.

But there are still a few important points to notice here:

  • Fixed rate HECM volumes are down from their peak early last year just after introduction, but recently have regained some additional volume
  • Annual adjustables are starting to gain as the margin gap shrinks between annuals and monthlies

Last Updated on Monday, 25 May 2009 15:22
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TOP 10 SALES PRESENTATION MISTAKES

Top 10 Sales Presentation Mistakes:

  1. Dumping information rather than telling a story.  Sales novices "spray and pray," hoping that some of it will stick.  Sales pros tell a story in which the endgame is the close.
  2. Trying to impress the audience.  Customers aren't going to buy from you because you have the fanciest slide pack.  Remember: It's not about you- it's about your message.
  3. Using a busy background template.  Don't pick a format with colors and shapes that overpower the words and pictures on the slides.
  4. Using fonts that people can't read.  Stick with simple fonts, such as Ariel or Times New Roman.  Avoid boldface, italics, and uppercase.  And don't use typefaces that are too small to read.
  5. Graphics that don't indicate what's important.  One picture may equal a thousand words, but only if that picture makes sense to the customer.  Highlight the date point that's crucial.
  6. Statements of opinion without supporting data.  Unsubstantiated "facts" such as "We're the leading reverse mortgage lender," destroy credibility if you can't back them up.
  7. Jargon that's meaningless to the target audience.  Jargon is fine, as long as it's familiar jargon.  You don't want your customers scratching their heads.
  8. Jokes or anecdotes that don't reinforce the message.  It's fine to pace a presentation with a joke or two, but remember that your not a standup comedian.  Make it short and relevant.
  9. Talking in the wrong tonality.  Talking too fast makes you seem nervous and insecure.  A monotone makes you sound bored.
  10. Presenting more information than anyone wants to know.

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MARKETING TIP

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May Marketing Tip
Sue Haviland, owner of Reverse Mortgage Success, a leader in training and educating loan originators about reverse mortgages discusses her May marketing tip.

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