There is no doubt that the Reverse Mortgage Industry is booming and many mortgage bankers and brokers alike are making their living off of the reverse mortgage market rather than the traditional forward mortgage that created so much wealth for them in years past. However, for many bankers and brokers, they can’t simply go back to their client base and introduce a new product, or take advantage of a change in the marketplace. (unless, of course, you are fortunate enough to have a large base of customers turning 62 with significant equity built up on their homes). So the next question is how do you build your business?
Like many bankers and brokers, one of the fastest ways to build a client base is through Lead Generation, and of course the first step is finding a source for leads. Many Mortgage Companies will promote three basic methods, all of which can be effective and used in conjunction with each other. The first method is working with friends and family. Oddly enough, for reverse mortgages, this can be a great place to start. Not only do we have our parents, but our parent’s friends. This may also include Aunts and Uncles and their “warm” market influences.
The second channel of leads comes from business partners such as title companies, financial planners, and realtors. Title companies are often the most helpful with marketing, and providing lists, and databases. Bankers and brokers should use a degree of caution when obtaining these lists as they do come with a various levels of accuracy. I know personally, I still get mailers from mortgage companies asking me if I want to refinance my loan which shows the original mortgage I had on the home ten years ago. I have refinances 5 times since then and my loan balance is three times as much. Obviously whomever sent these mailers out did not have to pay for the list. Most lists have a premium to them. The higher the premium the more accurate the list. If you pay the price, you will get a database of current mortgage information throughout the zip codes of your choosing. This includes Loan to Value, Current Mortgage, Products, Etc. Unfortunately I have not seen any that include the age of the borrower. None the less, you can surmise some basic ages based on zip codes, or how long they since their last refinance.
The third option comes form independent companies that specialize in gathering specific and accurate information. The price is a bit more than what one would pay for a good lead list from a title company, yet still very affordable. And arguably much more profitable. These independent companies provide qualified leads making the database more cost effective. The reality is that in today’s market the rules are different, the client base is new and what worked well in the past, may not work as well today. Utilizing independent companies specializing in building your business should be considered a key element in bankers and brokers success.
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