Lenders, brokers and loan officers who specialize in reverse mortgages know all about their benefits and value – a way to access equity in a home while borrowers continue to live in it.
But just because we know all the ins and outs of reverse mortgages doesn’t mean our target audience – homeowners 62 or older – do. Advertising is an important step in the reverse mortgage industry, not only to make consumers familiar with your business, but also so that they can learn more about reverse mortgages and their potential benefits.
Obstacles to Reverse Mortgage Advertising
Advertising a reverse mortgage product isn’t as simple as displaying a banner that reads “Get a Reverse Mortgage Today!” Any licensed lender or broker seeking to advertise directly should be fully aware of state and federal regulations designed to protect the consumer and industry from deceptive practices. Specifically, there have been many cases of consumers mistakenly thinking that reverse mortgages are a government benefit, don’t need to be repaid, or allow them to stay in their home no matter what. Publicizing false statements like these can lead to enormous consequences, including fines and revocation of licensure.
Best practices for reverse mortgage advertising include including all required federal and state disclaimers, never using the HUD or FHA name, logo, or seal in a way that suggests its affiliation company or product, avoid all misleading or misleading descriptions and language, and retain all advertising materials for at least two years.
By following reverse mortgage advertising best practices, you not only help protect your business from liability, but you also help consumers learn more about the benefits of reverse mortgages.
Dispelling Reverse Mortgage Myths
Another obstacle to reverse mortgage advertising is the myths often associated with the product. Many are wary of reverse mortgages, primarily due to the negative press coupled with misleading advertising. That’s why it’s imperative that you’re upfront and upfront about all aspects of reverse mortgages – including the risk of the borrower losing their home if they stop paying taxes or maintenance, and the fact that the loan will have to be repaid after the last borrower dies or moves out. Of course, borrowers should undergo approved reverse mortgage advice before getting one, which also helps to dispel myths and further ensures that borrowers understand what a reverse mortgage requires. Let your marketing help educate them before their advice.
Now more than ever, borrowers 62 and older can benefit from reverse mortgages
The popularity of reverse mortgages has recently seen a huge spike, in part due to rising inflation that has left seniors in need of extra monthly cash flow. In fact, according to the US Department of Housing and Urban Development’s HECM Snapshot Report, the number of home equity conversion mortgages (reverse mortgages) issued in July 2022 increased by 14.94% compared to July 2021, despite a rising rate environment.
Many senior homeowners are sitting on a hoard of equity, but don’t want to sell their home and are afraid of losing their home 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 pay taxes and maintain the property. The loan must be repaid only when the last borrower leaves the accommodation permanently.
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 to use 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 you get first-hand information from consumers with an active interest in getting a reverse mortgage. These leads are often sold within minutes of being created and verified, which means you can act quickly and reach out to the consumer while their interest is still high.
Reverse mortgage criteria can often be tailored to your business needs. Common lead criteria only include accepting leads from specific states, for certain loan amounts and credit score ranges. Other criteria may also be available to help you get the leads your business needs.
If you want to learn more about reverse mortgages, you can contact RateZip.com, a licensed lead generation company that specializes in reverse mortgages and traditional mortgages. Contact us at [email protected] or call Lead Generation Specialist Paul Knag today at 845-590-0908.