Scott Tucker's Reverse Mortgage Marketing Blog

"NRMLA presents free webinar to curb deceptive advertising practices..."

As part of its mission to help seniors borrow with confidence, the National Reverse Mortgage Lenders Association (NRMLA) presented a free Webinar for members on Jan. 12 in which a panel of experts presented specific examples of unacceptable advertising.

The panel included Volky Garcia, deputy director of the FHA’s Quality Assurance Division, who kicked-off the discussion with examples of phrases that can lead to investigation and potential punitive actions.

The FHA representative was joined on the panel by Jean Noble, a reverse mortgage industry marketing specialist; attorney Arthur Axelson from ReedSmith; Rick Peters, a marketing consultant for MetLife; and NRMLA president Peter Bell.

Half a dozen ads containing misleading or inappropriate language were scrolled on the participating viewers’ computer screens and the panel criticized the copy.

Included were ads falsely designed to look like official government documents, a definite “no-no” and cause for fine or suspension of license or worse.

Exaggerated promises (“No monthly payments,” “Stay in your house forever”) were also pointed out.

The session was the first in a series of four free webinars NRMLA is presenting between now and early March to advocate best practices on Hot Button topics--areas of the business that are frequently criticized.

“We want seniors as well as politicians and the press to be aware we are policing from within,” says Bell. “Our membership is a fervent advocate of senior consumer protection. And we will continually educate them on responsible lending practices.”

Future Hot Button topics include:

► Jan. 26—Managing Appraisals
► Feb. 10—Ethical Pricing
► March 2—Comprehensive Counseling

For more information, visit www.reversemortgage.org.

"NRMLA's new 'CRMP' designation..."

I was just listening to the free ReverseFortunes.com weekly podcast that came out today, and it spurred some thoughts...

Shannon Hicks from ReverseFortunes.com was interviewing Jim Veale, CPA, MBT, SVP of Tax & Government Affairs & Director of Originator Recruiting for Security One Lending.

During the interview, Jim shared his insights regarding the new CRMP designation from NRMLA.

Shannon urged newer reverse mortgage originators to reach-out to more experienced reverse mortgage originators for help & education.

And, although he didn't say it, I read into it that Shannon was also urging more experienced reverse mortgage originators to mentor the newer folks.

Shannon mentioned that we all should want to give back to the reverse mortgage industry, and that we're better off when everyone in our industry is better educated...even our competitors.

Let me add to these thoughts...

I've recently begun to think that NRMLA might better be named "NRMA."

AARP isn't AARPIC ("American Association of Retired Persons' Insurance Companies"), and maybe that's a key element to their success?

What I'm saying is maybe NRMLA should be renamed the "National Reverse Mortgage Association?"

And perhaps we should invite reverse mortgage borrowers to a $10 a year Membership?

Maybe we should also become more reverse mortgage originator (not just lender) friendly, so that we can educated everyone who originates reverse mortgages?

Currently, there is a $1,000.00 lump sum Membership for a lender who's done 25 reverse mortgages or less in the previous 12 months.

But where does this leave the individual reverse mortgage originator, whose broker/lender will not pay to join?

Say there's a reverse mortgage originator who is the only reverse mortgage originator in his shop...a forward mortgage brokerage?

Should we consider offering say a $97/month reverse mortgage originator Membership?

I think it's important that we limit headline risk by making sure that all reverse mortgage originators belong to NRMLA, not just those who work for "the right lenders."

If reverse mortgage originators are not in NRMLA, you can't fully educate them. And non-Members don't answer to NRMLA on ethics issues.

But please tell me what you think, by commenting below...

Yes, I read each and every comment. :0)

Sincerely, your friend,

Scott Tucker

P.S.: Please sign-up for my monthly reverse mortgage newsletter. On Wednesday, 4/29, at 3 pm CT, I'm interviewing Bill Hammond, Esq. on elder law issues affecting your senior borrowers. But you have to be a reverse mortgage newsletter subscriber to be on that call. You can take care of that here.

P.P.S.: Please buy Christopher Cruise's e-book on reverse mortgages.

"How to get all reverse mortgage originators on the same page..."

I just spent the last 2 days at the National Reverse Mortgage Lenders Association Chicago Road Show.

By the way, it was a terrific event, and there is another one coming-up in Orlando, on May 6th & 7th, and yes, you should definitely attend.

There was an ethics session, that kicked-off the Chicago road show, that was closed to folks who are not Members of NRMLA.

Frankly, I joined NRMLA just to be able to get into that ethics session, because I thought it so important.

But the fact that it was closed to non-Members got me to thinking, that maybe we should make this an open session, available to all NRMLA road show attendees?

See, my point is that there are originators out there that may never join NRMLA, and that we are better-off with them in that session, that without it.

I kicked this idea around with a few friends who were also at the NRMLA road show, and one person pointed something out to me: reverse mortgage lenders are trending toward cutting-off originators who are not serious & dedicated to the reverse mortgage niche.

That was a very good point.

What he was saying, if I may read into it a bit, is that if you're not serious about originating a decent volume (perhaps 3 loans a month minimum?)...and/or if you're not willing to dedicate yourself, as well as perhaps support staff in your "shop," to deal mostly/exclusively with the reverse mortgage as your primary business activity (instead of just writing one reverse a year, and the rest being forwards)...

Or if you don't "get it together" somewhat soon, that you may find yourself cut-off from reverse mortgage lenders, who are trending toward the serious, dedicated reverse mortgage originator.

Hmmm. That's something to think about.

Myself, I'll do a forward mortgage if someone makes me, but I have dedicated financial & staff resources to do only reverse mortgages.

I'm quite a bit above the 3 reverse mortgages a month level, and I can most definitely see how reverse mortgage lenders might not want to deal with sporadic originators who don't do dependable volume.

This trend might be something you've already caught-onto, but I'll admit, it was "news to me."

But it does jive with what I heard folks from one major reverse mortgage lender say during one of the sessions.

At the same time, Jeff Lewis, from Generation Mortgage Company, said during a session on strategic thinking, said that we in the reverse mortgage business need to start thinking much, much bigger.

We're about to see a boom in demand for the reverse mortgage, like nothing we've ever seen. How are we going to do all these loans?

Where will the "new blood" come from?

Two likely sources are the forward mortgage originators and folks from the financial services ("insurance") industry.

Some think that's a bad thing. I don't think it's either good or bad. It just "is."

If we don't get folks from those industries, then we'll have to grow them from scratch...perhaps folks right out of college, or folks starting second careers after leaving Fortune 500 companies.

I'm not real sure what's the best course of action. Perhaps a combination of all of the above?

Please tell me what you think, by commenting below...

Yes, I read each and every comment. :0)

Sincerely, your friend,

Scott Tucker

P.S.: Please sign-up for my monthly reverse mortgage newsletter. On Wednesday, 4/29, at 3 pm CT, I'm interviewing Bill Hammond, Esq., on elder law issues affecting your senior borrowers. But you have to be a reverse mortgage newsletter subscriber to be on that call. You can take care of that here.

P.P.S.: Please buy Christopher Cruise's e-book on reverse mortgages.