I usually write articles and blogs based on the current state of affairs in our industry or based on the feedback I’m getting from customers at the time.
It seems that now more than ever, I’m getting online blog requests and calls from borrowers who are telling me that they are feeling a lot of pressure from loan originators on their reverse mortgage requests.
Some of these folks are quite concerned because the lender representative will call constantly, will quote everything from company size to monthly volume as a reason for doing the loan with them but not necessarily solid benefits to the borrower.
These borrowers are saying that they are really being pressured to accept worse loans or make a commitment on the spot that they are not ready to make.
Some say that the sales people 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 that she had just hung up on a lender representative who told her she was “stupid” if she didn’t take his deal after being very condescending to her.
High Pressure Sales Antics 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 you, great.
If you decide that it’s not the right loan for you, then 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 with that, 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.
There are times when HUD or the market will make changes that would require borrowers to act within certain time frames or face changes, but at those times it’s up to the lender to fully inform you of the impending changes and let you make the decision as to whether or not you want to speed up or delay your process accordingly.
Every lender must supply a borrower with a Loan Comparison Page for the programs they are offering under the reverse mortgage program.
I suggest you take the Loan Comparison and compare it 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 want the lowest rate so that they accrue the least 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 other very important items that really affect their bottom-line goal more than they know.
A good representative and company wants to know what you want out of the loan and then shows you the different programs available, but also shows 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 certain 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, 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.
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 whatsoever with running advertising campaigns like these, someone must pay for them.
We don’t believe that borrowers should have to pay actors salaries and if that means we won’t be the biggest lender because we may not get our message out to the whole world as well, we’ll have to settle with the best value and the best customer satisfaction for the loans we do originate.