I usually write articles based on the current situation in our industry or the feedback I’m getting from customers. It seems that now more than ever, I’m getting online blog requests and calls from borrowers telling me they are feeling a lot of sales pressure from loan originators on their reverse mortgage requests.
Some of these folks are quite concerned because the lender representative will call constantly and quote everything from company size to monthly volume as a reason for doing the loan with them but not necessarily tangible benefits to the borrower.
These borrowers are saying that they are being pressured to accept worse loans or make a commitment on the spot that they are not ready to make. Some say that the salespeople are even getting mad at them when they say they want to shop around first or when they present a proposal like the one they received from All Reverse Mortgage because it’s so much lower than the one the other salesman gave them.
I talked to a woman yesterday who even told me she had just hung up on a lender representative who told her she was “stupid” if she did not take his deal after being very condescending.
High-Pressure Sales – Results from Commercial Ads
Have you received pressure like this from a reverse mortgage originator? Because if you have, that’s wrong! This loan is all about you and your needs; it’s not about the needs of the salesperson or the lender. If we can help you, we will. But the one thing you will not get is constant high pressure and the heavy push to close the loan. We do not believe in high-pressure sales. If this loan is right for you and we can help, great.
If you decide it’s not the right loan for you, you don’t need us or any other lender constantly calling you, badgering you, and pushing you into something you don’t want. We work at your pace. If you want to close the loan fast, we have no problem, but that must be your goal.
If you want a little time to think about things and to do some research, you should have the opportunity to do that without someone pressuring you to make an instant decision to work with them or to close the loan at their pace. Sometimes, HUD or the market will make changes that would require borrowers to act within specific time frames or face changes.
Still, at those times, it’s up to the lender to fully inform you of the impending changes and let you decide whether you want to speed up or delay your process accordingly. Every lender must supply a borrower with a Loan Comparison Page for their programs under the reverse mortgage program. I suggest you compare the Loan Comparison to the other lenders from whom you are also considering loan programs.
Look at everything and make sure your representative knows what your goals are.
Some borrowers want the most money possible out of the transaction; some like the lowest rate to accrue the slightest interest and preserve the equity in the home; some want a fixed rate, while others want a line of credit and the best interest rate caps available.
Some borrowers are so concerned with just looking at one of these factors that they miss some very important items affecting their bottom-line goal more than they know.
A good representative and company want to know what you want out of the loan and then show you the different programs available but also show you why one might help you achieve those goals better than another while allowing you the full opportunity to make the decision that’s right for you – not pushing you into any specific product.
Finally, another recurring issue I have heard many times (and seems to be a lot more in recent months) is that borrowers are telling me that when they start to back off, they ask for some time to think or tell some representatives that they have other quotes that are better, the representatives are quoting statistics as to how many loans they do and that the borrower should automatically pay more for a loan from a company who originates more loans.
TV Celebrity Spokesman
Hiring high-paid celebrity spokespersons to originate more volume isn’t a new approach. Over the years, we’ve seen Tom Selleck, Robert Wagner, James Garner, Henry Winkler, Barbara Eden (I dream of Jeannie), Pat Boone, Wayne Rogers, salsa star Gilberto Santa Rosa and Fred Thompson all doing commercial spots for reverse mortgages.
While there is nothing wrong with running advertising campaigns like these, someone must pay for them.
We don’t believe that borrowers should have to pay actors’ salaries. If that means we won’t be the most significant lender because we may not get our message out to the whole world, we’ll have to settle with the best value and customer satisfaction for the loans we originate.