According to new data from the National Reverse Mortgage Lenders Association, home equity among seniors rose to $6.3 trillion in the first quarter of 2017. This trend marks a big opportunity for Reverse lenders.
If you’re in this market, you know that Reverse mortgages meet a very specific need for consumers. The good news is, if you are taking the time to do your prep work and find quality leads, you can expect to have much higher-than-normal conversion rates. So, how do you target the right consumer for Reverse? Here are the top five suggested things to do that can assist when marketing Reverse mortgages to seniors:
1. Direct Mail is King
With Reverse customers, direct mail pieces seem to be one of the most effective tools. With the right messaging and imagery, your direct mail campaign should explain the benefits of a Reverse mortgage in detail. Whether brochures, postcards or pamphlets, direct mail is the perfect educational platform for marketing Reverse.
2. Alleviate Fears + Encourage Action
All consumers need to be encouraged into the mortgage process. But seniors need a bit more nudging for a Reverse mortgage, this is because they need help understanding the benefits as it relates to their retirement goals. Explaining the advantages in simple language should show seniors how reverse mortgages can significantly improve their financial security, and encourage them to take action in turning their real estate dreams into realities. Your materials should be empowering, easy to understand and offer encouragement to take action.
At the same time, it’s important to recognize the hesitation some consumers have in this space. Many seniors considering a reverse mortgage, along with their families fear they will lose benefits like Supplemental Security Income. Letting the consumer know that a Reverse mortgage is given in addition to SSI, is often helpful to many seniors.
3. Transparency = Credibility
Obtaining a mortgage is a big deal for any consumer, and for many seniors obtaining a Reverse mortgage is even more significant. Lenders should take the time to let consumers understand all of the nuances of a Reverse mortgage. If your materials and conversations with consumers are open, honest and transparent, the homeowner’s confidence level in your ability to find a solution to meet their needs should greatly improve. Trust is a selling point for this program, this demographic is very sensitive to financial services messaging. A transparent and authentic approach to customer service will reap rewards for you every time.
4. Don't Take Away Digital
We know that direct mail marketing and printed materials are great ways to attract seniors. And while many Baby Boomers are experienced in the mortgage process, some seniors want to complete the mortgage process in an efficient and digital manor.
On the front end, using your website and social media to promote customer testimonials for Reverse mortgages can capture the attention of family members that are doing online research for seniors. Discussing the pros and cons of a reverse mortgage and sharing other aspects of the program in a blog or social media post can provide seniors and their children with the level of value they need to make an empowered decision about a Reverse mortgage.
5. Always Offer a Leave Behind
Create take-home information and leave behinds so consumers can review the details of the loan when they get home. Many seniors are discussing the possibility of a Reverse mortgage with their children and families so creating a postcard or brochure that reiterates everything you discussed in your meeting is very important.
These are all things you should think about when marketing to seniors. Knowing how you’re going to reach and engage with potential Reverse clients will help you gain their trust and ultimately win their business.
Best Rate Referrals has the tools you need to be maximize the Reverse market. Contact us today and find out how you can begin using our new platform, Mortgage Advisor™, to find the Reverse leads you need.
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