June 2008

THE

REVERSE
“Forward Thinking in Reverse”
review
Volume I, Number 3

Gas, Food, Baseball, Apple Pie

and Chevrolet
In our ever changing economy, consider
these tips when marketing to your
clients.
Sam Collins

Keep Seniors At Home for Life!

Read about the best kept secret
opportunity for Veteran seniors.

Valerie VanBooven

What is a Loan Servicing Set-

Aside?
Learn the best way to explain this
concept to your clients.

David Cesario

ALSO IN THIS ISSUE

Why Internet Markeng? • Soluon Today for DE Underwring

• Wall Street Prefers LIBOR HECM’s:
Gretchen Williams They will be kind to your clients!
PAGE Even in the age of the Internet you may not fully • The Boom Line: Markeng
Numbers That Maer
18 understand the best way to use this as a marketing
tool. This concise article offers you a crash course
in Internet marketing.
• The Seven Selling Realies
• Scent of an Industry
NewOpportunitiesInReverseMortgageLending
ForFHAApprovedandNonFHAApprovedLenders
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Experience 1st Reverse
For lending professionals only and not intended for consumer “Concierge” Level Service and Support
distribution. © 2008 - 1st Reverse Financial Services, LLC.
THE
Cover Story
REVERSE review
Why Internet Markeng?

June 2008
by Gretchen Williams
Volume I, Number 3

6 Soluon Today for DE 18

Underwring
With the recent increase in FHA
loans, read about the renewed need 15 What is a Loan Servicing Set-Aside?
for DE underwriters. Understand what the loan servicing set-aside is
and how to effecvely explain this concept to
by Daniel Duplans
your clients.
Barbara Santner
by David Cesario
10 Keep Seniors At Home for 24 The Bottom Line: Marketing
Life! Numbers That Matter
Learn about the financial benefits Take a look at the industry factors which may be
you can offer your Veteran seniors leading to a deterioraon in markeng results and
and their spouses. learn how to overcome them.
by Valerie VanBooven by John Lunde
12 Wall Street Prefers LIBOR 28 The Seven Selling Realies
HECM’s: They will be kind Learn the secrets behind turning a lead into a
successfully completed sale.
to your clients!
by Monte Rose
Read about how and why the LIBOR
HECM may be a more beneficial 31 Gas, Food, Baseball, Apple Pie and
opon to offer your clients versus
Chevrolet
the CMT.
by Jerry Wagner As seniors begin to feel the recent economic
changes of rising food and gas prices, learn how
to adapt your markeng plans to fit their needs.
by Sam Collins
the basics

5 Note From the Editor

If you would like to
8 Industry Snapshot contribute an arcle for a
future issue, please email
33 Directory
your arcle for review to
34 The Last Word: Scent of an Industry editors@reversereview.com
by David Bancro
THEREVERSE review
THE

REVERSE review

Editor Aman Makkar

Copy & Design Editor Harpreet Makkar

Production Manager Jason Westbrook

Printer The Ovid Bell Press, Inc.

Contributing Authors
Daniel Duplantis
Barbara Santner
Valerie VanBooven
Jerry Wagner
David Cesario
Gretchen Williams
John Lunde
Monte Rose
Sam Collins
David Bancroft

Advertising Information
Rates, specificaons, and deadline informaon available.
phone : 858-217-5332
email : adversing@reversereview.com

Subscriptions and Editorial Content

phone : 858-217-5332
email : informaon@reversereview.com
website : www.reversereview.com

THE
REVERSEreview
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Suite 250
San Diego, CA 92127

© 2008 The Reverse Review, LLC. All rights reserved. The Reverse Review, LLC is a California limited
liability company and is the publisher of The Reverse Review magazine. Reproducons or distribuon of
any materials obtained in the publicaon without wrien permission is expressly prohibited. The views,
claims and opinions expressed in arcle and adversement herein are not necessarily those of The Reverse
Review, its employees, agents or directors. This publicaon and any references to products or services
are provided “as is” without any expressed or implied warranty or term of any kind. While effort is made
to ensure accuracy in the content of the informaon presented herein, The Reverse Review, LLC is not
responsible for any errors, misprints, or misinformaon. Any legal informaon contained herein is not to be
construed as legal advice and is provided for entertainment or educaonal purposes only.
Postmaster : Please send address changes to The Reverse Review, 10801 Thornmint, Ste 250, San Diego, CA
92127

4 June 2008 reversereview.com

 “Forward Thinking in Reverse”

Note From the Editor

How do we overcome sales objecons? How do we turn leads into sales? Or, beer
yet, how do we get those leads into our office? Much of our June issue is about sales
and markeng. It seems that everyone has their own unique manner in which they
market and sell a reverse mortgage. Some work beer than others, but that’s how
we each aain our compeve advantage. One aspect of markeng where I’ve had
a tremendous amount of experience, but where most reverse mortgage companies
don’t tend to focus is search engine opmizaon (SEO).
Have you ever been asked, “Is your site opmized for Google” or “Have you done
any SEO”? Every company has a website. Every business card I receive and you hand
out has a website listed. A company website has minimal benefit if we can’t bring
traffic or visitors there. Search engine opmizaon is one of the most cost effecve
methods of drawing traffic to your website.
Search engine opmizaon, according to Wikipedia, is the process of improving the
volume and quality of traffic to a web site from search engines via “natural” (“organic” or “algorithmic”) search
results for targeted keywords. Simply stated, it’s geng your website to show up in search results without paying
the search engines.
Why is it so important?
Majority of web traffic is driven by the major search engines: Google, Yahoo, MSN, and Ask.com. If your site cannot
be found by these search engines, you’re missing out on sales leads your competor may be receiving. There are
seniors trying to learn about reverse mortgages, and your company sells them, however if they can’t find your
company you’re losing that potenal customer. It’s that simple. Whether your site provides content, services,
products, or informaon, search engines are a primary method of navigaon for almost all Internet users.
Content is Key!
Web content is very important for two reasons: SEO and generang sales leads. One fact we all know about seniors
is they have me, and if they’re online, they like to read. Most of us cannot read a full page of text on a web page.
If there’s a phone number, we’ll pick up the phone, call, and let someone else explain what we could have read
online. Generally speaking, seniors tend to be paent people. They’ll read 10 pages on your website before they
pick up the phone and call you. So, make sure you have 10 pages for them to read. The more content you have on
your website, the beer the search engines understand your website, your company, and your product offering.
Creang online content can be a cumbersome task, but it’s truly important.
Make the web your compeve advantage!
Many reverse mortgage companies focus heavily on direct mail, television adversing, or radio spots, but few
opmize their websites for seniors online. This alone can be a compeve advantage, especially for smaller
organizaons that primarily focus on local clients. SEO is definitely easier when targeted towards a geographic area.
I can’t repeat this enough, if you’re selling reverse mortgages, make sure your clients can find you online. With the
number of new originators we’re seeing in this industry, you’re going to need a compeve advantage.
Search engine opmizaon does take some me. Results don’t come immediately, but once your site is opmized,
you’ll be receiving leads without any effort (and very lile cost)! Research SEO online (90% of the informaon on
SEO is available free online). Start on your quest for opmizaon today to set yourself apart in the future.
Thank you for taking the me to read this and I hope you enjoy our June issue of The Reverse Review.

Aman Makkar
Editor

June 2008 reversereview.com 5

THEREVERSE review
Solution Today for DE Underwriting
by Daniel Duplans and Barbara Santner
With the industry turning back to
the tried and true FHA loans, many in
the mortgage industry are becoming
aware that there is an alarming lack of
DE Underwriters. With the industry focus
being on the Alt A and subprime market
over the last few years, the training of
underwriters for the FHA market had
taken a back seat.
Going back a few years with
FHA only doing 2% of the mortgage
business and DE Underwriters being
more expensive to hire, the training
programs were minimized or in some
cases eliminated in favor of the more
popular convenonal loan products. The
current mortgage crisis brought back into focus the essenal
basics for the need of sound underwring decisions which
includes the analysis of risk for both FHA and the lender.
The advent of the Automated Underwring System (AUS)
perpetuated the problem of training the pool of potenal DE
Underwriters. Consequently, we find ourselves where we are
today.
When FHA revised one of their Handbooks in the 90’s
that addressed this issue, it has been overlooked or lile
used due to the lack of originaons for FHA financing. FHA
foresaw the need for “Full Eagle” lenders needing qualified
underwring assistance for some specialty programs or
when the Lender had large increases in volume. FHA
allows one Full Eagle lender to work with another Full Eagle
lender for such things as the underwring of HECM loans
when their DE Underwriter is not approved to underwrite
HECM loans or underwrite other programs such as 203k
(rehabilitaon loans) or the New FHASecure program, which
has been implemented recently to help Americans save their
homes from foreclosure.
One DE Underwriter that we spoke to has been in the
mortgage business since 1981 and tells us her story of
how five years ago she ended up working as a contract
underwriter for a PMI company in favor of ulizing the
6 June 2008
nearly 30 years of experience she had as a DE Underwriter.
As a contract underwriter she was forbidden by FHA rules
to use her extensive experience because she was not an
employee of the Lender for which she was underwring. She
maintained her training and kept herself updated with FHA
rules with the hope that they would come back some day.
To make maers worse today, the pool of potenal DE
Underwriters has been reduced greatly because this pool
comes from FHA Processors and there are less of them for
the same reasons that the DE Underwriters are reduced,
reducon in FHA loans in the past few years. This can be
evidenced by the many groups and organizaons that are
providing FHA training. Now, this might replenish the pool of
potenals but it doesn’t provide the experience somemes
necessary when it comes to evaluang risk on many of
the FHA products today. Remember, that the manually
underwrien loan looks at both the Lender invesng the
money and whether FHA should insure the loan.
The Quality Control Department
DE Underwring for the Quality Control Department
presents similar issues. FHA Handbook 4060.1, Chapter 7-6
F., states:
Each Direct Endorsement loan selected for a quality
control review must be reviewed for compliance
with HUD underwring requirements, sufficiency of
documentaon and the soundness of underwring
judgments.
If the QC Underwriter is going to analyze for soundness of
underwring judgment and is not a DE Underwriter, then
a true check of the original underwriter is not made. Since
there were so few FHA loans originated, many shops have
FHA loans reviewed by non-DE Underwriters. Now, of course,
filling the QC Department with at least one DE Underwriter
when there isn’t a sufficient number in the Underwring
Department, especially in small instuons, makes for a
difficult proposion.
The QC situaon is much easier to recfy than the one in
reversereview.com

the Underwring Department according to FHA rules. FHA
allows for outside contracng of the Quality Control funcon
although the Lender is sll liable for the QC program. Many
outside QC firms do not use DE Underwriters when they
review FHA loans and therefore the issue of checking the
Lender’s and FHA’s risk by the original Underwriter has not
changed with outside contractor providing the service.
Where Do We Go From Here?
Unl such me as the pool of DE Underwriters gets
replenished, the most viable and cost-effecve alternave
is to go with a Full-Eagle Lender to contract out the DE
underwring for both the Underwring Department and
Quality Control Department. The contractor is paid for only
those FHA loans that need to be underwrien rather than
hiring full-me DE Underwriters for both the Underwring
and Quality Control Departments.
Have a question for
The Reverse Review underwriter?
Please email us at
asktheuw@reversereview.com
June 2008
“Forward Thinking in Reverse”
About the Authors: Daniel J. Duplans, CMB, CRU is a 35-year
veteran of the mortgage finance business and is Execuve
Vice President and Chief Credit Officer of USA Underwriters
a division of American Reverse Mortgage Corporaon. He
has held a single-family and mul-family DE from FHA since
1983. Duplans is one of only 10 in the US that holds both
the CMB and CRU designaon from Mortgage Bankers
Associaon of America. He can be reached at D.J.Duplans@
USAUnderwriters.com.
Barbara C. Santner, CMB, CRU has been a DE Underwriter
since 1986 and serves as Vice President of Underwring for
USA Underwriters, a division of American Reverse Mortgage
Corporaon. She manages the team of all DE Underwriters
for helping other Full-Eagle Lenders in their underwring of
all FHA products. She is also one of only ten in the US with
both the CMB and CRU designaon from Mortgage Bankers
Associaon of America. She can be reached at B.C.Santner@
USAUnderwriters.com.
reversereview.com 7
THEREVERSE review

Reverse Mortgage Industry Snapshot

As Of April 2008
Stascs Provided by Reverse Market Insight

Top 10 Rankings by Region

Endorsements Active Lenders Region Share
Rank Chg Region 2008YTD YTDChg% 2007TOT 2008 Chg% 2008YTD Chg%
1 1 Southeast/Caribbean 9,832 24.28% 24,014 532 128.33% 24.521% 15.0%
2 -1 Pacific/Hawaii 8,030 -8.17% 25,612 512 58.51% 20.026% -15.03%
3 - Mid-Atlantic 4,834 15.37% 11,956 238 90.4% 12.056% 6.75%
4 - Midwest 4,112 3.52% 11,434 315 54.41% 10.255% -4.21%
5 1 Southwest 3,467 30.73% 8,073 198 88.57% 8.647% 20.97%
6 -1 New York/New Jersey 2,899 -4.1% 8,322 196 83.18% 7.23% -11.26%
7 1 Northwest/Alaska 2,266 19.14% 5,790 188 88.0% 5.651% 10.24%
8 -1 New England 2,233 -15.64% 6,963 206 57.25% 5.569% -21.94%
9 - Rocky Mountain 1,376 26.35% 3,296 122 60.53% 3.432% 16.92%
10 - Great Plains 1,048 7.82% 2,827 108 96.36% 2.614% -0.23%
Industry Totals 40,097 8.07% 108,287 1,868 81.54%

10 Regions, ranked by HECM unit volume YTD. Including rank change from prior YTD, as well as growth rates.
Also includes acve lenders and growth

Lender Distribuon by YTD Growth Rate

Growth Rate Lenders YTD MIC Last YTD

-100% 222 1,462
-99% to -1% 387 17,362 28,043
0 to 100% 250 8,389 5,929
101% to 200% 72 3,061 1,227
201% to 300% 26 434 121
301% to 400% 14 302 65
over 400% 58 4,170 255
New Lenders 1,061 6,379

Lender distribuon graph and table, showing number of lenders growing at various growth rates YTD vs. prior
YTD, including volume aributable to each group of lenders.

Client Noces

1) Help improve data quality in the Reverse Mortgage industry. If you believe your company’s numbers on this report are inaccurate, please email us
(support@rminsight.net) and we will review your feedback promptly. Please include your name, company and contact informaon along with a thorough descripon
of the suspected inaccuracy. Thanks!
2) If you received this report as a trial or sample and would like to purchase this report or future reports for your company, please visit: www.rminsight.net/MICreports.
php
3) If you’ve been looking for a source for Reverse Mortgage intelligence beyond MIC endorsement numbers, we’ve got just what you need. Find out more at www.
rminsight.net/rmarket.php

8 June 2008 reversereview.com

 “Forward Thinking in Reverse”

24 Month Penetration and Unit Volume

24 Month Penetraon and Unit Volume
12,000 1.60%

1.40%

1.20%

10,000
1.00%

Penetration
Units

0.80%

0.60%
8,000

0.40%

0.20%

6,000 0.00%
2006-5 2006-9 2007-1 2007-5 2007-9 2008-1

MIC Units Penetration %

2 year trend graph of monthly HECM unit volume and industry penetraon against 62+ homeowner households naonally.
Appendix
1) All stascs based on retail originaons from HUD’s Monthly HECM MIC reports
2) Loans are in unit volume, based on HUD reported mortgage insurance cerficate issuance
3) Lenders are aggregated using HUD’s lender idenficaon numbers and unique lender names, along with feedback from
reporng lenders
HUD Regions and Corresponding States/Territories

Region 1 - New England Region 3 - Mid-Atlanc Region 5 - Midwest Region 7 - Great Plains Region 9 - Pacific/Hawaii
Conneccut Delaware Illinois Iowa Arizona
Maine District of Columbia Indiana Kansas California
Massachuses Maryland Michigan Missouri Federated States of Micronesia
New Hampshire Pennsylvania Minnesota Nebraska Hawaii
Rhode Island Virginia Ohio Nevada
Vermont West Virginia Wisconsin Region 8 - Rocky Mountain
Colorado Region 10 - Northwest/Alaska
Region 2 - New York/New Jersey Region 4 - Southeast/Caribbean Region 6 - Southwest Montana Alaska
New York Alabama Arkansas North Dakota Idaho
New Jersey Florida Louisiana South Dakota Oregon
Georgia New Mexico Utah Washington
Kentucky Oklahoma Wyoming
Mississippi Texas
North Carolina
Puerto Rico
South Carolina
Tennessee
U.S. Virgin Islands

June 2008 reversereview.com 9

THEREVERSE review

Keep Seniors At Home for Life!

by Valerie VanBooven

Understanding your market (seniors

and their adult children) is the key to
success in the Reverse Mortgage industry.
Understanding programs that fit together
beaufully makes you the undeniable “go
to” guy or gal in your local market. Doing
a lile homework can reap BIG benefits
now and in the future.

We all want to maintain our independence and choice

for as long as possible, right? So what if you could show your
prospect how to afford long-term care without insurance,
and without leaving their home? It’s possible! (As an aside,
I would always recommend that healthy seniors look into
long-term care insurance. For some, they are unable to
qualify due to health concerns.)
“A Veteran or the surviving spouse of a Veteran
who has served at least 90 days or more on acve
duty with one day beginning or ending during a
period of war, and who is in need of assistance at
HOME due to disabilies, may be eligible for VA’s
non-service connected disability pension.“
Did you know that there is a pension benefit available to
Veterans and the widows of Veterans who served during a
period of war? Even beer, that Veteran did not have to be
injured in an act of war or during acve duty to receive this
parcular pension benefit. Most people have NO IDEA this
even exists. Now you have a markeng tool that many others
will not take advantage of because they won’t do their
homework!
There are financial benefits available for Veterans
or their surviving spouses for non-service connected
disabilies.
The Veterans Administraon has established a pension
program whereby your purchase of personal care and
aendant home services may be paid for through their
acquired pension. A Veteran or the surviving spouse of a
Veteran who has served at least 90 days or more on acve
duty with one day beginning or ending during a period
of war, and who is in need of assistance at HOME due to
disabilies, may be eligible for VA’s non-service connected
disability pension.
The following are the VA’s defined “periods of war”:
• WWI - Apr. 16, 1917 to Nov. 11, 1918
• WWII - Dec. 7, 1941 to Dec. 31, 1946
• Korea - Jun. 25, 1950 to Jan. 31, 1955
• Vietnam - Aug. 5, 1964 to May 7, 1975
• Persian Gulf - Aug. 2, 1990 to present
Aid and Aendance can help pay for care in the home,
nursing home or assisted living facility. A Veteran is eligible
for up to $1,519 per month, while a surviving spouse is
eligible for up to $976 per month. A couple is eligible for up
to $1,801 per month. This increases each year for cost of
living.
Here’s the interesng part. It takes about 4-6 MONTHS
for the family to go through the paperwork, get approved,
and start receiving the benefit (which does pay retroacvely
by the way). In the meanme, MANY seniors look to Reverse
Mortgages to fill in that cash flow GAP while they are
waing for approval. Somemes obviously the VA Aid and
Aendance Pension Benefit does not cover all of the costs of
care at home, and more cash flow is needed- which makes
this the perfect fit for Reverse Mortgage proceeds to fill the
gap.

10 June 2008 reversereview.com

 “Forward Thinking in Reverse”

You don’t have to be an expert in the VA Aid and

Aendance Pension benefit to use this informaon to your
advantage. In fact, it is recommended that the family/senior
take on the project of applying themselves. This is not a
service that anyone can charge for, and is me consuming in
many cases.

However, while that process is moving forward, Reverse

Mortgage Loan Consultants can swoop in and save the
day by providing much needed cash flow within 30 days
of applicaon for a Reverse Mortgage. The markeng
opportunies are bounful. Keep in mind that you need
to be able help your senior and their family members
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email us at editors@reversereview.com

June 2008 reversereview.com 11

THEREVERSE review

Wall Street Prefers LIBOR HECM’s

They will be kind to your clients!
by Jerry Wagner

Turnabout is fair play! Rate spreads
have changed materially since our
arcle in the May 2008 issue of The
Reverse Review (see The Reverse Review
Website). Last month we said that a
LIBOR HECM could give an extra $80 in
inial benefits, but its inial Note Rate
would be 0.676% higher, if that spread
held the borrower would owe an extra
$26,454 in ten years. We also pointed out that historically
things were out of synch -- the one-month LIBOR has been
only 0.13% higher than the one-year Constant Maturity
Treasury (CMT) rate.
A lot has changed in the past month. Table 1 below
shows various reverse mortgage indexes now and then. Note
that the short-term Treasury indexes have gone up and the
short-term LIBOR indexes have gone down.
Our prior arcles explained how a 5.56% floor was used
with 10-year rates when looking up HECM principal limit
factors (LTV factors to you forward mortgage folks). An
Expected Rate of 5.56% or less pays the maximum benefit
available from a HECM. With today’s rates, June 10th in the
table above, we see that a LIBOR HECM could have a margin
up to 90 bp since the 10-year Swap rate is 4.66% -- a Treasury
HECM could have a margin up to 1.58% -- both products
would then meet the 5.56% floor.
“... not sure that borrowers will be worse off with
LIBOR. Of the two interest rate series, I think the
CMT is ... subject to US monetary policy swings …
Chinese willingness to buy US Treasuries … while
the LIBOR is more ed into the global economy.”
Here’s the Turnabout?
Table 2 compares the LIBOR and CMT HECM. Wells Fargo
is the largest originator of reverse mortgages and now uses a
margin of 1.50% on the monthly-adjusng Treasury HECM.
Using a 90 bp LIBOR margin (the highest that will sll
allow) the Expected Rate to round to 5.50%, we see that

Table 1
Index Source 6/10/08 4/28/08 Change Use

1-month LIBOR WSJ 2.44938% 2.87375% -0.42% LIBOR Monthly HECM

6-month LIBOR WSJ 2.96938% 3.01875% -0.05% Some LIBOR Jumbos
1-year LIBOR WSJ 3.21063% 3.06750% 0.14% LIBOR Annual HECM
5-year Swap FED H15 4.13% 3.67% 0.46% Fixed Rate HECM Index
10-year Swap FED H15 4.66% 4.34% 0.32% LIBOR HECM Principal Limit
FNMA 60-Day FRM FNMA 6.11072% 5.88378% 0.23% Gold Fixed Rate Jumbo
1-month CD FED H15 2.45% 2.83% -0.38% Fannie Mae HomeKeeper
1-month CMT FED H15 1.86% 0.86% 1.00% Treasury Monthly HECM
1-year CMT FED H15 2.14% 1.67% 0.47% Treasury Mo. & Annual HECM
10-year CMT FED H15 3.98% 3.67% 0.31% Treasury HECM Principal Limit

12 June 2008 reversereview.com

 “Forward Thinking in Reverse”

a LIBOR HECM gives an extra $38 in available benefits

because its higher Expected Rate gives a lower SFSA.

Table 2
LIBOR HECM CMT HECM
Short-term Index 2.449% 2.14%
Investor Margin 0.900% 1.50%
Inial Note Rate 3.349% 3.64%

10-Year Index 4.660% 3.98%

Investor Margin 0.900% 1.50%
Expected Rate 5.560% 5.48%
LTV Lookup 5.500% 5.500%
LTV Factor 0.715 0.715
Max Claim Amount 362,790 362,790
Principal Limit 259,395 259,395
Loan Fee -7,256 -7,256
Upfront MIP -7,256 -7,256
3rd-Party Costs -2,211 -2,211
Available Aer Costs 242,672 242,672
SFSA -4,803 -4,841
Available Benefits 237,869 237,831

And now its inial Note Rate is 0.291% lower than

the Treasury HECM. If this spread holds, this 73 year old In conclusion historical yield spreads are reasserng
borrower will owe $9,451 less in ten years by choosing the themselves, your client likely will be beer off in a LIBOR
LIBOR HECM! HECM if their inial benefits are equivalent to those from
a Treasury HECM. In response to the May arcle, the best
Two key rates affect a HECM authority on HECM emailed me: “... not sure that borrowers
will be worse off with LIBOR. Of the two interest rate series,
The long rate determines how much can you get. The I think the CMT is ... subject to US monetary policy swings …
short rate determines what it will cost you. The spread Chinese willingness to buy US Treasuries … while the LIBOR is
between short-term and long-term LIBOR and CMT rates more ed into the global economy.” I agree.
changed remarkably in the last five weeks.
Thankfully the “American Condion” was a short-lived
The LIBOR spread rose by 74 bp – this means that phenomenon.
the short-term LIBOR (used in finding the note rate) is
considerably lower than the long-term LIBOR (used in finding About Jerry Wagner: Jerry Wagner is President and Ashok
the LTV). The opposite happened with Treasury HECMs – the Shinde is CTO of Ibis soware based in San Francisco. Ibis
spread fell by 43 bp. has been the Standard of the reverse mortgage industry
since 1995. Wagner graduated from Harvard Business
Table 3 School and has a Ph.D. in Economics from Harvard. But
Spread 6/10/08 4/28/08 Change he’s sll a fun guy and can be reached at 800-566-5077 or
wagner@ourtoolbox.com. To learn about Ibis soware, see
Long v Short LIBOR 2.21% 1.47% 0.74%
www.ReverseMortgageHomePage.com.
Long v Short Treasury 1.77% 2.20% -0.43%
Difference 0.44% -0.74% 1.18%

June 2008 reversereview.com 13

 Are you looking at the face of sales call reluctance?
These are some of the tell-tale signs...
• You spend more time making excuses than • You put all your energy into direct mail pieces
making contacts; or other forms of indirect contact;
• You’re always “putting out fires” instead of • You ingest huge amounts of salestraining
prospecting for new business; information that don’t produce results;
• You have a consistent lack of new clients in • Your production always seems to lag behind
your pipeline; the level you feel you’re capable of.

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 “Forward Thinking in Reverse”

What is a Loan Servicing Set-Aside?

by David Cesario

For many involved in reverse
mortgage lending, one of the most
difficult concepts to master and to
explain is the calculaon of the loan
servicing set-aside fee. As part two of
this two-part series on reverse mortgage
servicing, we will try to explain what
the servicing set-aside is and how this
concept (and perceived cost) should be
explained to a borrower.
The servicing set-aside fee is disclosed on the reverse
mortgage summary calculaon that is typically provided
to reverse mortgage borrowers. This summary generally
conveys the available loan proceeds to a borrower, under
comparave reverse mortgage scenarios. The servicing
set-aside is a lump sum item listed separately and is oen
perceived as a closing cost or charge to the borrower.
Fortunately this large dollar amount is not a closing cost paid
by the borrower. Unfortunately, the originator will need to
explain what the servicing set-aside is and why it is not a
closing cost. By the way, you will probably have this exact
discussion with just about every reverse mortgage borrower
you work with!
servicing set-aside to pay for the monthly servicing fee
3. When the servicing set-aside funds withheld run out,
then the borrower has to repay the reverse mortgage
loan
4. The total amount of the servicing set-aside is incurring
interest charges
5. The borrower does receive a refund of the servicing set-
aside fee if they move out before the servicing set-aside
is fully disbursed
6. The borrower does not receive a refund of the servicing
set-aside fee if they move out before the servicing set-
aside is fully disbursed
With this variety of misinterpretaons, let’s try to
describe exactly what the servicing set-aside is. HUD
Handbook 4235.1 Rev. 1, Appendix 7 describes the servicing
set-aside as:
2.3.4. {The} Lender shall inially set aside from the
Principal Limit the amount indicated on the aached
payment plan (Exhibit 1) to be applied to payment
due for a fixed monthly charge for servicing acvies
of Lender or its servicer. Such servicing acvies are
necessary to protect Lender’s interest in the Property.

So what is a loan servicing set-aside? I have heard a

»
variety of answers from many reverse mortgage lenders
across the country. Interesngly, many experienced and
inexperienced lenders do not explain this item properly. This
shouldn’t be a surprise to anyone as the servicing set-aside
concept has been a murky subject to most!

“The servicing set-aside effecvely creates an

addional equity reserve in the property that is
available to address the ongoing incursion of the
monthly servicing fee.”

By way of example, here are some common explanaons

provided to borrowers of what the servicing set-aside is:
1. The lender collects the full amount of the servicing set-
aside at closing
2. Each month, the lender disburses funds from the

June 2008 reversereview.com 15

THEREVERSE review

A servicing fee set aside, if any, is not available to
the Borrower for any purpose, except to pay for loan
servicing.
This definion references that the “…servicing fee set-aside,
if any, is not available to the borrower for any purpose,
except to pay for loan servicing.” In pracce, the monthly
servicing fee is not being withdrawn from the amount
inially set-aside. Instead, the borrower has a monthly
service charge added to their outstanding balance each
month for the cost of servicing. Monthly servicing fees
typically range between $20 and $35 depending on the loan
and lender selected. The servicing set- “The more informaon a potenal
aside effecvely creates an addional
equity reserve in the property that borrower can have about the
is available to address the ongoing components of a loan transacon set-aside makes sense. The more
incursion of the monthly servicing fee. being contemplated, the beer a
The HUD Handbook 4235.1 Rev. 1, decision that borrower
Secon 5.7 goes on to describe how
the servicing set-aside fee should be calculated as:
A set-aside for monthly servicing fees is calculated by
determining a fixed monthly fee, and then
determining the present value of that fee using the
term used for a tenure payment plan (i.e. to the
borrower’s 100th birthday) and the compounding
rate defined below in 5-8B.2. Example: The present
value of a fixed monthly servicing fee of $25, given
a term of 300 months and a compounding rate
of .0825 divided by 12 is $3,192.58. This amount
should be subtracted from the principal limit to
arrive at the net principal limit that is used for
determining monthly payments or a line of credit.
To beer understand how much servicing expense a
borrower would incur, let’s look at an example. Using the
numbers cited from the HUD Handbook, we will use a $25
monthly servicing fee and a calculated servicing set-aside of
$3,192.58 for the example. If a borrower obtained a reverse
mortgage loan with this set of factors and the borrower
moved out of the home at the end of 2 years, let’s calculate
what the servicing charges would be in this example.
Monthly Servicing Fee: $ 25.00
Length of Loan x 24 months
Total Servicing Expense Paid $ 600.00
is not due a refund of this excess amount. The excess
amount was le as addional equity in the home and sll
remains as equity.
Sounds easy enough to explain to a reverse mortgage
borrower, doesn’t it? The reality of the servicing set-aside
is that it is just part of the calculaon or algorithm used to
determine the borrower’s ulmate access to proceeds. But
unlike other parts of the algorithm the servicing set-aside
is disclosed and appears to be a sizable, up-front cost or
expense.
In the interest of full and complete
disclosure to potenal borrowers, the
concept of disclosing the servicing
informaon a potenal borrower can
have about the components of a loan
can make.” transacon being contemplated, the
beer a decision that borrower can
make. But if that reasoning was the raonale for disclosing
this part of the qualificaon equaon, then shouldn’t we
disclose the rest of the reverse mortgage algorithm? To
provide the balance of the algorithm, you would need to
print and provide the contents of HUD Handbook 4235.1 Rev.
1 to your borrowers.
Irrespecve of the logic (or lack thereof) of disclosing
the servicing set-aside to potenal borrowers, and you are
faced with the challenge of doing it. Make sure you have a
good understanding of what the servicing set-aside is and
how it is calculated. Then you should have a good chance of
providing a clear explanaon for your borrowers.
About David Cesario: David Cesario is a naonal speaker
and educator on Reverse Mortgage Lending. He serves as
the Execuve Vice President of 1st Reverse Financial Services,
LLC, a naonal wholesale reverse mortgage lender, located
at 410 Quail Ridge Drive in Westmont, Illinois, 60559. The
company’s website is located at www.1stReverse.com where
informaon can be found about 1st Reverse’s wholesale
lending programs and opons for lenders interested in
offering reverse mortgage loans.

Although the servicing set-aside fee was inially

calculated at $3,192.58, the actual servicing expense paid
by a borrower who repays their reverse mortgage loan at
the end of 2 years is $600.00. The difference ($3,192.58
- $600.00 = $2,592.58) remains as equity in the home. The
lender never collected this excess amount and the borrower

16 June 2008 reversereview.com

Commentary by First American eAppraiseIT

REVERSE
MORTGAGES
A GROWTH OPPORTUNITY WORTH INVESTIGATING

Over the last 20 years, 345,000 reverse mortgages have been originated. Last year, originations hit a
new high: $20 billion. As the US population ages, the market has responded with new and innovative
products and services geared towards keeping seniors in their homes for longer periods of time.
National lenders in need of market diversification have migrated to reverse mortgages in an attempt to
make up for lost business in other markets.

Recently Michael Fosser, senior vice president of First American eAppraiseIT, offered his perspective on
this market and the opportunities and challenges that it presents to lenders.

Why are so many lenders including reverse mortgages in their product mix?
Today many market segments continue to be depressed and markets like sub prime and Alt-A are almost
nonexistent. Reverse mortgages tend to be more “need driven” and less tied to market conditions. In the
US today, more than 38 million eligible reverse mortgage customers own their homes outright. That’s $4
trillion in untapped equity. This offers a great opportunity for lenders to grow their portfolio of business in
a market that is less sensitive to fluctuations in the real estate market.

Are some appraisers more qualified than others to service this market?
Over 90% of today’s reverse mortgage originations are insured by FHA. Not every appraiser or appraisal
management company is qualified to complete these assignments. At eAppraiseIT we have a nationwide
network of more than 8,000 appraisers who are FHA certified – one of the largest panels of FHA appraisers
available in the industry today. To ensure a successful reverse mortgage offering, lenders need to work with
an appraisal management company that can provide national coverage and still maintain reasonable turn
times. In our case, that is five to seven days.

What challenges does a lender face servicing this market?

AARP recently conducted a survey of reverse mortgage customers and one of its findings was that their
properties frequently need repairs. This of course can complicate the underwriting process and salability
of a loan. To reduce lender concern, eAppraiseIT has created a new product specifically geared for the
reverse mortgage market called “Value View”. It helps lenders assess the condition and value of a property
while the loan is in the lender’s portfolio. This low cost inspection report includes a current photo of the
subject property, an automated valuation using two comprehensive AVM’s, and an inspection report that
answers questions regarding a property’s condition, marketability, and neighborhood. Value View is a great
peace of mind option for any lender interested in originating reverse mortgage loans.

Contact
Michael Fosser
800.281.6200
www.firstam.com
Why Internet Markeng?
by Gretchen Williams
Internet search leads are unique.
Unlike other forms of adversing
(television, cold-calling, direct mail,
radio, etc), Internet search is the
only form of adversing where the
consumer is not experiencing an
interrupon into their everyday lives.
Instead consumers are truly iniang
a request to find out more informaon
about your product and/or offering.

Why chase consumers when there

are so many already looking for you
online? Why not work towards making

yourself more visible to them? Online search consumers are
not making contact from an unsolicited offer they received
because they were cold-called and coached by a call center
rep. The process of researching informaon online is
iniated by the consumer’s interest in your product. Online
users conduct a search, si through the results and then
review the website that they believe will provide them with
the most accurate informaon for the product they are
researching. When these consumers reach this website they
are more comfortable subming their contact informaon.
Internet markeng delivers qualified consumers that have a
user iniated interest in your product.
But how does the Internet relate to the senior
demographic? Are seniors really online? The answer is yes.
Seniors are one of the fastest growing online demographics
and online seniors can oen be one of your most educated
and savvy clients. Online markeng also provides you an
opportunity to speak to third-party decision makers early
on in the process. Many mes these are the individuals
who pose obstacles by refusing you access to them. By
speaking to these third-pares, such as adult children, and
others requesng the informaon on behalf of the senior,
you have the opportunity to dispel any misconcepons from
the onset and ensure proper educaon. Even beer, having
their support can oen facilitate the process of closing
more deals, especially over the phone and through the mail.
Overall, search markeng will allow you the opportunity to
speak to borrowers at all stages of the process, building your
pipeline and providing you with a steady stream of leads.
You can now close your hot leads while incubang your
warms ones, finally freeing yourself of that vicious sales cycle
and allowing you to more accurately forecast your sales.
“Online markeng also provides you an
opportunity to speak to third-party decision
makers early on in the process. Many mes
these are the individuals who pose obstacles by
refusing you access to them.”
Perhaps the most important thing to be aware of is the
cost. Search markeng can be very expensive, especially
if it is unfamiliar territory. It does require a certain level of
knowledge and skill in order to be effecve, and the tesng
that is essenal for success is very me consuming. This
arcle is aimed at providing you with some basic knowledge
to get started while also sharing ps for successful lead
follow up. However, as with all parts of your business, it
is important to recognize your strengths and weaknesses
and outsource when it makes sense. In the end, it is about
where your me is best spent and how you can achieve the
lowest lead acquision cost.
June 2008
“Forward Thinking in Reverse”
Website Design Tips/Recommendaons
Before you can parcipate in the world of search
markeng and Internet lead generaon you need to first
lay a foundaon; create a place online where consumers
can gather to obtain the informaon they need to make
an informed decision. I am, of course, talking about your
website. There are many things that you need to consider
when designing a website, especially as it relates to the
senior demographic. Here is a checklist to get you started:
 Informaon-rich content
 Easy to use navigaon
 Font size and color – in this case, you want a larger font
and dark text on a light background
 Include a call-to-acon. A call-to-acon is an implicit or
explicit suggeson that directs customers and prospects
to act in some manner, such as calling a toll-free phone
number to request more informaon.
 Easy to access contact form
 Visible phone number on every page
Establishing a Goal and Markeng Strategy
Once you have created your website you are now ready
to ‘open your doors’ for business and receive traffic. Your
involvement in search markeng will have a direct effect on
your website’s traffic, so it is essenal that you establish a
strategy early on. One of the most important aspects of any
good strategy is establishing an end goal and ensuring that
all steps throughout keep that goal in mind. Your website
will most likely have one of two goals: 1) to serve as an
informaon portal for your exisng clients, or 2) to generate
addional business that you would not have otherwise had
access to offline. Your search markeng strategy will be
different depending on your end goal.
If your goal is to solely provide informaon for exisng
clientele, and any business they may refer, then your
primary focus should be on those tools and resources that
they require. Although, this content is relevant for any
informaon-rich site (regardless of its end goal) you will want
to be sure that your site includes things like: a step by step
process from applicaon to close of loan, relevant news and
changes to programs, payment schedules, etc.
If your ulmate goal is to generate addional business
then you will need to familiarize yourself with some search
markeng terminology. To start there are 2 different types of
search markeng that you should consider: sponsored/paid
and organic.
»
reversereview.com 19
THEREVERSE review

• PPC (Pay-per-Click, also referred to as Cost-per-Click Paid Search Campaign Components

or CPC): is a type of sponsored/paid search markeng
where you pay a set price each me your ad is clicked There are many components that will make up your paid
(this is known as a click thru). Examples includes: Google search campaign, among them: budget, geographic targeng
AdWords, Yahoo Search Markeng and MSN adCenter. and keyword research. Once you determine your budget and
the geographic area that you will target it is me to begin
• SEO (Search Engine Opmizaon): is the process of making the process of researching relevant keywords. Part of this
a site and its content highly relevant to both search research includes establishing ‘negave’ keywords (i.e. those
engines and those conducng the searches. Successful keywords that you do NOT want your ad to be displayed for).
search markeng will result in your
site’s top (organic) posioning for
“Try different strategies and There are many tools available to assist
you with this research, many of which are
relevant keywords and phrases. schedules unl you find the free and available directly through search
one that best compliments engines like Google, Yahoo and MSN.
Other important terminology: Keyword research is especially important
• Conversion rate: measurements that
your unique selling style.”
with the senior demographic who typically
determine how many consumers take your preferred are not as well-versed in using Internet search. Without the
acon step. With a paid search campaign you will have ability to ascertain the keywords that are being used by the
mulple conversion rates. consumer when searching your campaign will lack exposure.
o Click through conversion: number of consumers that
click on your ad divided by the total number that viewed In order to have an effecve campaign there needs to be
it through their search results. a common thread connecng the consumer’s search, search
o Landing page conversion: number of submissions you results (i.e. your ad) and the landing page. A landing page
receive through your landing page divided by the pages refers to the page the consumer clicks through to from the
visitor total. paid search campaign (i.e. the page they ‘land’ on). For best
results, your landing pages must be highly targeted to the
consumer’s search and your paid search ads. As an example,
a consumer search for ‘reverse mortgage applicaon’ should

20 June 2008 reversereview.com


land the consumer on a page to complete an applicaon. If
you, instead, send this visitor to your website’s homepage
you will only cause frustraon which will, ulmately, result
in a less than desirable conversion rate. Since you are
paying for every click through on your ad non-relevance will
significantly increase your cost per conversion. This, coupled
with poor budget constraints can drive you out of the search
markeng space very quickly.
This brings us to perhaps the most important component
of any paid search campaign, Tracking, Tesng and
Revising. Reworking landing pages is one of the simplest
and most effecve ways to increase your conversion rate.
It is imperave that you track your results from campaign
implementaon and then test, revise, and test again.
Those with the most effecve and efficient campaigns will
constantly be searching for ways to improve results and
adapt to the ever-changing consumer and search markeng
space.
Search Engine Opmizaon
Search Engine Opmizaon contains two different
elements: on-site and off-site. On-site refers to those
elements that make up the site itself. This includes meta
tags, tle tags, keywords and the site’s overall content. Off-
site refers to those elements outside the boundaries of your
site that can affect your site’s organic performance within
the search engines. Examples include: building inbound links
and site directory submissions.
Search engine opmizaon is an enrely different beast
all together and to do it properly requires the experse of
an industry expert. This is definitely one of those situaons
where it makes the most sense to outsource. Be sure to do
your due diligence as a consumer and always ask to speak to
references.
Keys for Successful Lead Incubaon
Acquiring interested prospects is one thing, but
successful follow up that results in closing deals is quite
another. The first step (as obvious as it may seem) is to pick
up the phone, and to do so as soon as possible. Borrowers
researching quotes and other reverse mortgage informaon
commonly submit their informaon to mulple sites. Any
genuinely interested consumer will do their due diligence
and this includes making requests with mulple companies,
whether online, over the phone or both. Therefore, it is not
uncommon to hear “I have already spoken to 20 different
people”. Exaggeraon, or not, the possibility remains that
you are not the first (or even the last) person they will speak
with. The most important thing you can do for yourself in
June 2008
“Forward Thinking in Reverse”
the first call is establish their need. Sure, they want more
informaon about a reverse mortgage, but the real queson
is…why, and for what reason? Find this out and overcoming
objecons will be a breeze, without this informaon you
can only hope to close deals by geng lucky. Once you
recognize their needs, begin addressing them one by one.
This approach will not only uncover the real reason for their
inquiry but it will also help to you establish a relaonship and
build rapport with the borrower.
“In order to have an effecve campaign there
needs to be a common thread connecng the
consumer’s search, search results (i.e. your ad)
and the landing page.”
Follow these keys to success and increase your return on
investment!
• Call all prospects ASAP and make sure your website
has an auto responder giving them an alternate way to
contact you.
• Check for misspellings and format errors (i.e. spaces,
missing dots, etc) in email addresses and well as incorrect
area codes in phone numbers before deeming a contact
invalid.
• Reference the web address or other lead source in your
introducon and all subsequent communicaons.
• Be persistent, but polite. It is unlikely that you will reach
a borrower by phone with only 1-3 call aempts and not
receiving a call back does NOT mean they are no longer
interested. Instead, try changing your call me and
(if applicable) remove your caller ID block. Only leave
messages when you have a reason to do so. For example,
let them know that you would like to send them more
informaon but first need to confirm their address. If you
sll cannot reach them, then send the informaon and
leave a message to let them know it was sent. Your next
aempt can be to confirm receipt while making yourself
available to answer quesons.
• Establish the borrower’s need/goal in the first call.
Ask something like, “What interested you about a
reverse mortgage that prompted your request for more
informaon?” Keep the first call under 30 minutes and
ask easy quesons the borrower knows how to answer.
Above all else, you do not want to overwhelm them.
• Include a call-to-acon in all of your communicaons.
• Avoid asking yes and no quesons, instead direct the
conversaon with open-ended quesons. For example,
what is the best day for us to meet?
• Discuss both the posives and negaves of the program
to create a balanced view – this will build trust.
reversereview.com
»
21
THEREVERSE review

• Inquire about other family members that will be involved

in the final decision making process.
• Offer references.
• Know your strengths. What knowledge and experse can
you offer that they cannot get elsewhere?
• Create a strategy and schedule for follow up that extends
over a period of me (the longer the beer). As we all
know, the reverse mortgage consumer is rarely in a hurry [Reverse Mortgage Direct Mail Specialist]
and it is not uncommon to hear stories of leads turning
into deals 9 months or more aer their inial inquiry.

Creang a Strategy and Schedule for Follow Up 90% of our Customers Reorder...

Your persistence and follow up strategy is essenal to

your success. The key is to create a plan for regular follow Not a customer?? #ALLTODISCUSSOURMARKETING
up complete with markeng materials. Ulizing a Client
Relaonship Management (CRM) tool will increase your
follow up effecveness. A CRM tool will help you track
and, beer yet, automate your processes. There are many
available that are specific to the mortgage industry; however,
if you cannot afford such a tool at the very least develop a
system to track your results.
PROGRAMSHOWWECANINCREASEYOURMONTHLYVOLUMEAND
IMPROVEYOUR2/)(AVEAMAILPROGRAMALREADY,ETUSSAVE
YOUTIMEANDMONEY7EHAVESOLUTIONSTOYOUR2EVERSE
-ORTGAGE-ARKETINGNEEDS

;-ENTIONTHISADFORFREEMAILERSWITHYOURlRSTORDER=

When creang your schedule for follow up you need Reverse Mortgage Direct Mail Specialist
to first idenfy the various lead life cycles (30, 60, 90 days, 6722 Vista del Mar, Suite A, San Diego, CA 92037
etc). Use these life-cycles to customize your CRM tool to TOLLFREE   sEFAX  sEMAILTRAAM AOLCOM
www.smart - - marketing.com
set automac reminders for periodic phone calls, as well
as to send emails and/or leers ensuring you remain in ...exclusive, targeted, motivated
contact with your leads over a longer period of me. When
building out a schedule it is important that you vary your
Markeng or a lead aggregator in the reverse mortgage
message topics, this is especially important where educaon
space. At the very least, you should now have enough
is involved. Examples of markeng materials include:
knowledge to engage with and choose a markeng partner
newsworthy arcles, situaon-specific leers, ‘Top 10’ lists
that is right for you.
(i.e. Top 10 Things to Know Before Geng a Reverse), holiday
and other friendly reminders to name a few. Lead follow up
About Gretchen Williams: Gretchen Williams is the Director
is nothing more than providing interested consumers with
of Sales for Reverse Mortgage Directory,
relevant informaon on a consistent basis.
LLC and focuses on advising industry
“Any genuinely interested consumer will do their professionals on Internet markeng
strategy and successful lead incubaon.
due diligence and this includes making requests Every month RMD provides thousands
with mulple companies, whether online, over of guaranteed reverse mortgage leads
the phone or both.” to hundreds of Lenders across the
United States through its consumer
You should now have the basic tools to establish a site, ReverseMortgageAdviser.com. The
successful Search Markeng strategy of your own. Know site also offers consumer access to its Naonal Lender
your strengths and those elements that you can control and Directory. For more informaon, call (888) 412-5557, email
exploit them. For most, your me is going to be best spent gretchen@reversemortgageadviser.com or visit www.
creang and tweaking your lead incubaon process. Try ReverseMortgageAdviser.com.
different strategies and schedules unl you find the one that
best compliments your unique selling style. In regards to
your search markeng campaign itself, this will most likely
be outsourced, either to an agency specializing in Search

22 June 2008 reversereview.com

At Lender Lead Solutions we know
that one size doesn’t fit all.
Products for every client;
Wholesale for every lender

A traditional, government-insured Reverse Mortgage.

For clients who want the comfort of a fixed rate.

Lower closing costs and eligibility starting at age 60.

Clients can make the most of their higher-valued homes.

To contact Lender Lead Solutions

call 888.775.3631 or visit our website at
www.lenderleadsolutions.com

This is for mortgage professional use only, not for distribution to the general public.
THEREVERSE review
The Bottom Line: Marketing Numbers That Matter
by John Lunde
This month, I’ll begin a mul-part
series about the most important measures
of reverse mortgage success. Each arcle
will walk through a specific area of the
industry, focusing on the key risks and
opportunies to growing your reverse
mortgage business. If you have any
quesons or would like to suggest topics
for future arcles, please contact me.
If you’ve experienced declining returns on your markeng
investments in recent months, you’re not alone. A consistent
topic of concern in discussions with many companies
around the industry has been a connuing deterioraon in
markeng results, as measured by markeng cost per funded
loan. Given this backdrop of the current challenges, perhaps
it’s me to address this topic from a fundamental point of
view.
24 June 2008
Compeve Business
The first point in addressing the concern about declining
markeng effecveness is to beer understand what’s going
on. While there are many opinions and stascs to discuss,
the single largest macro driver behind most markeng issues
you’re seeing today is compeon. The number of lenders
funding reverse mortgage loans has almost doubled over
the last twelve months. While the business as a whole
has seen growth rates decline as home values push some
marginal volume out of the business, the bigger key is that
compeon has increased dramacally.
Pung these two factors together, the average loan
fundings per reverse mortgage lender (companies, not loan
officers) has trended down in recent years but parcularly
so in the past 9-12 months. This is strikingly apparent with
March’s number hing a low of 7.7 that hasn’t been seen
reversereview.com
 “Forward Thinking in Reverse”

since December 2001. The business has grown considerably

since then (over 9,600 loans by 1,200+ lenders vs. 706
Successful Companies
loans by 97 lenders), but in such a compevely distributed Rely On
market, it’s more important than ever to understand and
manage your key business metrics to be successful. ReverseVision
“Regardless of media channel (direct mail, TV,
radio, etc.), the first measure of a campaign’s
success is the number of leads it generates.”

Hing Your Targets

The key markeng metric that everything else es back

to is Markeng Cost per Funded Loan (MCFL). In this metric,
there are many important subparts that we’ll discuss, but
this is really square one for reverse mortgage markeng. The
benchmark here is $1,000, and the important issue here is
to track your enre markeng cost (media spend, collateral
creaon and markeng department) and ensure that you’re
tracking based on leads generated and following these
leads through to the end of the process. Costs to generate
today’s leads should show in MCFL when they’re funded,
not on today’s fundings. Given the long sales cycles in the
reverse mortgage business, this is an important disncon to
ensuring that you’re seeing accurate numbers for decision-
making as campaign spending ebbs and flows.

Formula:
Markeng Cost Per Funded Loan = [Media Cost (TV,
radio, print ad, direct mail cost) + Collateral Cost
(creang the commercial or mailer) + Markeng
Department Overhead (staff, consultants, etc.)] / Funded
Loans (fundings from leads generated in campaign) Complete integration from origination to
processing, underwriting, closing, and
Who’s Listening? shipping.

The first step in ensuring an opmal MCFL is focusing
efforts on response rates and the percentage of responders
broadly qualified for a reverse mortgage. Regardless of
media channel (direct mail, TV, radio, etc.), the first measure
of a campaign’s success is the number of leads it generates.
In direct mail this can be understood as a percentage of
mailings generang a response, while with other channels it
might simply be a raw count of responses. Either way, the
important focus is to understand how many leads are being
generated and then how many of them are broadly qualified
(age, homeowner, etc.). This is the first step in a successful
markeng campaign analysis – now you’re ready to turn your
newfound audience into customers of your firm.
Highly scalable - for small entities to enter-
prises with correspondents and branches.
Sales oriented graphical interface that
integrates directly with Microsoft Word and
Outlook.
Direct export to Celink, RMS, Fannie Mae,
UBS, Goldman Sachs, ReverseDocuments
and others.
ReverseVision Inc.
3310 Pollock Place • Raleigh, NC 27607
www.reversevision.com

» (919) 834 0070 • info@reversevision.com

June 2008 reversereview.com 25

THEREVERSE review

Formulas: sll belong to your loan officer in many cases. There’s a

Response Rate = Responses / Mailings real benefit to having your loan officer stay in touch as the
% Qualified = Qualified Responses / Total Responses process unfolds, parcularly if you’re experiencing longer
turn mes in your ops center or it’s a parcularly challenging
Who’s Buying? deal.

If there’s one area where we consistently see companies Formula:

struggle, it’s in converng qualified leads into applicaons. Applicaon to Funding Rao = Funded Loans /
While it’s true that this measure also relies heavily on your Applicaons
sales force effecveness, there’s no excuse for consistently
low performance in this area. Anything under 6% is cause for Closing the Loop
serious concern regarding both markeng lead quality and
sales conversion training – 10% and above is your goal here We’ve talked extensively about costs here without
and many companies have seen significantly higher levels of directly addressing revenue, which is a bit like spending all
success. Make sure you connue to track applicaons over day in the kitchen and not eang. The good news here is
me back to your original lead generang campaign. It’s not that if you’ve done things right so far, the revenue side of
uncommon to see 30% or more of the picture should be a happy one.
applicaons occur months aer the “If your customer has signed on the While it’s true there are many ways
lead is generated. doed line to apply, the last thing you revenue can be impacted by different
want to do is have a high cancel rate loan circumstances (customer inial
There can be, of course,
turn all your hard work to this point draw, age and home value come to
some external reasons for poor mind immediately), there are few
performance in this area as well. into a net loss as you absorb the cost cases indeed where you would lose
The first and most obvious circles of me spent on a cancelled loan money if you hit the targets above.
back to compeon. An increasingly and maybe even incur unrecoverable
compeve environment can show The only word of cauon when
up in a lower level of responses to
third party costs like appraisals.” calculang a markeng ROI is to
your markeng campaigns, but is oen more telling in the use a net revenue number when calculang the markeng
lower lead to app rao. If you don’t already, you’ll want ROI. It’s easy to be impressed by a high ROI number when
to consider adding a step to your process to circle back using a gross revenue number, but it won’t help to see a high
with leads who don’t apply within 45 days of a salesperson ROI number if your sales and fulfilment costs are too high.
contacng them to understand why they didn’t apply. While the net revenue is again dependent on other parts of
Chances are that you’ll see a significant number have gone the firm besides markeng, it’s the only way to measure true
on to apply with another lender. It may not be something effecveness of a markeng campaign end-to-end.
you want to hear, but use it as movaon for your sales force
and broader organizaon to refine the approach and achieve Formulas:
higher levels of success. Markeng ROI = Net Revenue per Funded Loan /
Markeng Cost per Funded Loan
Formula: Net Revenue = Gross Revenue – Markeng Cost- Sales
Lead to Applicaon Rao = Applicaons / Qualified Cost (commissions, etc.) – Fulfilment Cost
Leads
Final Thoughts
Who’s Closing?
If you’ve made it this far, it’s because you already know
If your customer has signed on the doed line to apply, that markeng is a crical factor in building a successful
the last thing you want to do is have a high cancel rate turn reverse mortgage business. While the numbers and
all your hard work to this point into a net loss as you absorb formulas above may not be the first thing you think about
the cost of me spent on a cancelled loan and maybe even every morning, they’re invaluable when it comes to making
incur unrecoverable third party costs like appraisals. While good decisions. There are many ways to ease the pain of
the job of converng applicaons into fundings is largely creang and tracking these important numbers, but two of
that of your operaons staff, the key communicaon links the best steps are to put good systems in place using your

26 June 2008 reversereview.com

 “Forward Thinking in Reverse”

desired report outputs as your guide and have a dedicated

analyst create the numbers for you. These steps will help ReverseVision
ensure that you spend more me using the informaon
provided by these key metrics, and less me creang it – an
Makes
invaluable me saver when you’re growing your business in
an ever more compeve marketplace.
Companies Successful
“While the job of converng applicaons into
fundings is largely that of your operaons staff,
the key communicaon links sll belong to your
loan officer in many cases.”
About the John Lunde John K. Lunde is President and founder
of Reverse Market Insight, the premier source for market
intelligence and analycs services in the reverse mortgage
industry. RMI clients include mulple top ten reverse
mortgage lenders and servicers, as well as some of the
largest financial services firms in the world. Find out more at
www.rminsight.net or call 949-429-0452.

ReverseVision puts all the pieces into place.

Successfully used by medium and large
lenders, ReverseVision is the most complete
software in the reverse mortgage industry.

Thanks to the graphical POS, loan officers

convert more leads. Loans are easily under-
written with the semi-automatic underwriting
engine, closed with MERS-compatible docu-
ments, automatically transferred to Fannie
Mae, and reported in compliance with HMDA.

Companies switching to ReverseVision

experience an immediate increase
in their productivity.

ReverseVision Inc.
3310 Pollock Place • Raleigh, NC 27607
www.reversevision.com
(919) 834 0070 • info@reversevision.com

June 2008 reversereview.com 27

THEREVERSE review
The Seven Selling Realities
by Monte Rose
These seven “principles” affecng
sales producvity have been
condensed from global survey results
on salespeople across a variety of
industries and cultures. Regardless of
what business or environment one is
in, the applicability of these ideas are
universal.
1. New prospects are the lifeblood of a business.
2. Selling is a “Numbers Game.” The more you contact, the
more you close.
3. Without new prospects, all presenng and closing skills
are worthless.
4. Geng sales people to prospect, rather than showing
them how to prospect, is sales management’s greatest
challenge.
5. Eighty percent of new sales people, who terminate in Year
1, do so due to lack of prospecng acvity.
6. Forty percent of veteran sales people experience one
or more episodes of Call Reluctance severe enough to
threaten their sales careers.
7. Assessment of exisng willingness or reluctance
to prospect is the starng point in improving sales
producvity.
Aside from the issue of “fit” -- which has to do with
whether or not a person is suited for a sales career in the
first place -- prospecng is the most important behavioral
variable that affects success in sales. However, prospecng is
not about the “how to.” My own experience in working with
hundreds of successful and not-so-successful producers boils
down to this simple truth: Prospecng is 80% movaon and
20% skill. Converng (i.e., presenng and closing) is 80% skill
and 20% movaon. Conscious or unconscious resistance to
prospecng for new business is a complex behavior that has
many underlying roots.
28 June 2008
In numerous research studies over the last two decades,
psychologists studying successful sales behaviors have
learned that skills and knowledge are the easier elements
to idenfy and develop. Though essenal for peak
performance, they are by themselves not sufficient for
breakthrough results. Skills and knowledge are the “p of
the iceberg” so to speak. The unseen structure below the
waterline is more difficult to idenfy and develop. They are:
(a) self-image, (b) traits, and (c) moves. These “submerged”
aributes are actually the underlying characteriscs that
lead to longer-term success.
Prospecng is the most important behavioral
variable that affects success in sales. However,
prospecng is not about the “how to”.
...Prospecng is 80% movaon and 20% skill.
Converng (i.e., presenng and closing) is 80%
skill and 20% movaon.
In our consulng and sales coaching pracce, we
generally acknowledge two key (interrelated) modes that
govern sales success. The first variable is simply a person’s
“internal wiring.” This is the “Strengths Profile” that
characterizes how a person acts within a work/professional
context. The second centers on prospecng behavior,
which is equally idenfiable and measurable. Prospecng
reluctance can be reduced to three components: thoughts,
feelings, and acons. Acons are generally accompanied
by thoughts and feelings, which are in turn learned and/or
genecally predisposed. For the most part, call reluctance
usually involves learned negave emoons like fear. The
good news is that it can also be unlearned and corrected --
some types easier than others to “cure.”
These two “bookend” modes, Strengths and Sales Call
Reluctance, provide a framework (i.e., the chassis) for
selecng, developing and training sustainable and successful
sales performance.
What are the roots of “sub-opmal prospecng” aka Sales
Call Reluctance?
reversereview.com
 “Forward Thinking in Reverse”

While most people have a predisposion to one or

more forms of prospecng reluctance, this does not mean
that they are call reluctant. Sales call reluctance (SCR) is
an “aggregaon of emoon-based escape and avoidance
behaviors parcularly associated with the act of iniang
first social contact.” This concept was developed by Dudley
and Goodson in the 1970’s. They can be differenated from
broader concepts like social anxiety by the type, degree,
onset and limited specific nature of the symptoms. Though Finally, a robust, interactive
environments differ significantly, success in sales invariably
requires generang new business, translang into increased online resource exclusively
revenue. for Reverse Mortgage Loan
Contact iniaon with prospecve buyers (and, in Officers!
our business, professional referrals) is considered a core
competency. Failure to prospect consistently and effecvely
for new business is the most cited reason for poor sales
producvity. Studies linking call reluctance and outcome Join NARMLO and dramatically impact
measures such as commission dollars have shown that your reverse mortgage business.
contact iniaon with prospecve buyers, or lack thereof,
can disnguish high and low sales producers with up to 73%
accuracy. Other factors become equally crical, if not more  Get resources and information geared
important, once first contact is made. However, iniang towards reverse mortgage Loan Officers
contact with prospecve buyers must occur – consistently
– before sales can be made. This fact remains regardless of
product sold, sales training provided, producon incenves, NARMLO Reverse Mortgage Today
sales support, or even market condions. All of the above Monthly Teleseminars and Webinars
factors can be present, but if there is a call reluctance issue NARMLO Blog
sales success will not be sustainable. Discussion Forum
In the early days of the RM business, prospecng was
Marketing Tools
not the liming constraint. There was a lot of low hanging Lender/Lead/Service Resources
fruit, and it was relavely easy to “get to the kitchen table.” Educational Materials for your seniors
Most successful people differenated themselves with their
kitchen table skills. Nowadays, the de has turned. People  NARMLO.org is the place to find answers to
who have an ingrained disciplined system that allows strong,
all of your questions
consistent and ethically appropriate prospecng will survive
the tough mes ahead.
 NARMLO.org offers an interactive
“Studies linking call reluctance and outcome discussion forum where you can exchange
ideas and express constructive opinions with
measures such as commission dollars have reverse mortgage Loan Officers throughout
shown that contact iniaon with prospecve the world
buyers, or lack thereof, can disnguish high and
low sales producers with up to 73% accuracy.”
Any effecve training program to improve sales
producvity begins with an accurate diagnosis. In our
coaching intervenons, we start with a much more
www.narmlo.org
comprehensive on-line assessment, which then becomes
the blueprint for improving the skills and behavioral
competencies around successful prospecng. Without

June 2008
» reversereview.com 29
THEREVERSE review

effecve idenficaon and valid/reliable assessment, HUD Foundation Specialists

effecve counter-measures cannot be introduced. Though
sales call reluctance is a “normal” phenomenon present
even in the best producers, research has shown that it is the
single most important variable (i.e., the proverbial “weak
link”) in determining whether you are earning what you truly M
Manufactured
actured Hou
Housing
sing
deserve. Troubleshooters
Trouble
Sales call reluctance (SCR) is an “aggregaon of
emoon-based escape and avoidance behaviors FFoundation
parcularly associated with the act of iniang nnspections, Upgrades
& Repairs
first social contact.”

About Monte Rose: Monte Rose has helped hundreds of EEngineer

seniors obtain a reverse mortgage during the past 17 years. Certificatio
C ons
He is an accomplished speaker and widely quoted industry
expert, appearing in financial publicaons and naonally
syndicated media. He was head of naonal retail sales for
Financial Freedom Senior Funding Corporaon. Monte is a
Cerfied Senior Advisor and a Cerfied Strengths Coach with
Gallup University. For more informaon, call 800-516-0545
or email info@monterose.biz

Tradition Title Agency

Serving New York State with
Knowledge, Experience and Trust

We Help You Grow Your Business

Providing Reverse Mortgage Services for Over 12 Years

CALL OUR TEAM FOR MORE INFORMATION AT (631)328-4410

WWW.TRADITIONTA.COM
AN APPROVED VENDOR WITH THE LEADING REVERSE MORTGAGE LENDERS

30 June 2008 reversereview.com


Gas, Food, Baseball, Apple Pie and Chevrolet
by Sam Collins
I would like to take you back in
me. Close your eyes and imagine
being born in 1928. You have lived
your life and experienced World Wars,
the Great Depression, new polical
changes, turmoil, healthcare, advent of
welfare, social security, the Charleston,
Chubby Checker, Elvis and now weather
paerns that change like the wind.
Now imagine, it is the year 2008. You have just turned
80 years old. Looking back, you could never imagine having
lived to such a ripe old age. It is now me to sit back, relax,
and not have to worry about all that other stuff. Let the
youth of the world handle all the trivia. It is me to enjoy
your golden years.
It is difficult not to imagine why our seniors are cynical
and scared about their everyday lives and their financial
futures when you consider that in 1928 the cost of gasoline
was probably no more than 10 cents (including taxes). Even
in 1970, my first business was a gas staon and the cost
of gasoline was 28.9 cents per gallon. My customers were
complaining when it went to 30 cents. So, imagine the awe
and fear of our seniors paying $4 + for a gallon of gas.
Milk used to be delivered to our doorstep every morning.
I used to love to be the first one to bring the glass bole
product in the house and I even cheated by chugging down
the cream that rose to the top. Here is the kicker, the milk
that was delivered was only 39 cents per gallon. Now
consider milk is at or near $4.00 per gallon. So much for a
quick bowl of cereal in the morning.
“In 1928 the cost of gasoline was probably no
more than 10 cents. Even in 1970 ... the cost of
gasoline was 28.9 cents per gallon.”
Here is the GOOD NEWS! Eighty-five per cent of boomers
born aer 1946 own their homes. The American dream
was founded and built around home ownership. Thank
goodness, home ownership is one of the best possible
investments that most Americans could make. If not for
June 2008
“Forward Thinking in Reverse”
home ownership, many would have never saved enough
money nor accumulated a nest egg for their rerement
or shor all they are experiencing now because of out of
control rising gas, food and healthcare costs. Many matures
are now beginning to consider their home as a financial tool,
rather than the Archie Bunker days of mortgage burning and
leaving everything to the heirs.
This May, consumer confidence hit a 28-year low. Many
seniors are starng to take note of the different financial
soluons to make up for the shor all they are experiencing.
There are several products on the market that address the
“unlocked” asset value. One product ulized by matures is
a reverse mortgage and interesngly 74% of boomers are
aware of a reverse mortgage.
As a reverse mortgage loan officer, manager, or key
execuve, it is me for you to reconsider how to market
to your seniors. Keep in mind, we are not in the reverse
mortgage business, we are in the markeng business. Your
job is to get the phone ringing. You need to talk to your
senior clients before you can reach out and help them.
Being in the reverse mortgage business is a privilege. You
have the ability to dramacally impact lives.
Cost Effecve Markeng Strategies
You too may be experiencing a ght budget. But now is
not the me to cut back on your markeng. Cung back
and reducing budgets is one of the biggest mistakes made in
all businesses. Now is the me to increase your markeng
acvies, however; with budgets incredibly ght, spending,
more money (or even the same amount as you used to) on
markeng is probably making you think twice about how you
spend your hard earned dollars.
I hope some of the following strategies will help you in
your decision making process and boost your lead generaon
and originaons.
»
reversereview.com 31
THEREVERSE review

1. Revive “old” leads: Chances are you spent a prey penny

on those leads that fell by the wayside. Go back through your
files and contact those old leads which at one point seemed
unworthy of your me. I bet you will be surprised by how
many of the “old” turn into new leads!

2. Take advantage of “FREE” offers: There are many markeng

consultants that offer free introductory consultaons during
which you can gain a lot of insight and informaon to help
move your business forward. Why not take advantage of their
offers? What do you have to lose?

3. Research Local Senior Centers: Wouldn’t it be nice to have

a presence where your seniors hang out? Consider sponsoring
an event, providing refreshments, or placing educaonal
materials in local senior centers.

“If not for home ownership, many would have

never saved enough money nor accumulated a
nest egg for their rerement or shorall they are
experiencing now because of out of control rising
gas, food and healthcare costs.”
4. Use Feature/Benefits Statements in your Markeng: A
feature is something about your product that would prompt
your prospect to want to buy. It could be how your product
would reduce costs, save me, save a house from foreclosure,
etc. Most people stop here in their markeng. I suggest you
take this one step further and give your prospect the WIIFM
(what’s in it for me). This is the statement that matches up
your feature with the prospect’s needs, thus establishing
benefit. The easiest way to begin a benefit statement is: What
this means to you is...

5. Have a Follow Up System: We have already established

how expensive it is to buy or generate leads...why not treat
those leads with a lile respect and use them to their fullest
potenal. The American dream is sll alive. Always do the
right thing for your senior clients and success will follow.

About Sam Collins: Sam Collins is the President of Sam

Collins Markeng, LLC and Founder of NARMLO, the Naonal
Associaon of Reverse Mortgage Loan Officers. NARMLO
is a web based naonal sales, markeng, training, and full
resource center created exclusively for Reverse Mortgage Loan
Officers. Not a NARMLO member yet? Go to www.narmlo.org
to join today!

32 June 2008 reversereview.com

 Directory “Forward Thinking in Reverse”

Lender Lead Soluons

David Cesario
3 Hunngton Quadrangle John Lunde
1st Reverse Financial Services, LLC
Suite 303N Reverse Market Insight, Inc.
410 Quail Ridge Drive
Melville, NY 11747 Aliso Viejo, CA
Westmont, Illinois 60559
(800) 562 - 6755 (949) 429 - 0452
(877) 574 - 1000
lenderleadsoluons.com rminsight.net
info@1streverse.com
info@rminsight.net

Monte Rose
America’s Recommended Mailers, Inc.
17100 Gillee Ave
1680 S. Hwy 121, Bldg. B
Irvine, CA 92614 Gretchen Williams
Lewisville, TX 75067
(800) 516 - 0545 Reverse Mortgage Directory, LLC
(800) 992 - 2722
monterose.biz reversemortgageadviser.com
armleads.com
info@monterose.biz gretchen@reversemortgageadviser.com
(888) 412-5557

Naonal Associaon of Reverse Mortgage

10801 Thornmint Rd
Loan Officers Reverse Vision
Suite 250
22 Polly Drummond Hill Rd. 3310 Pollock Place
San Diego, CA 92127
Newark, DE 19711 Raleigh, NC 27607
(877) 229 - 7799
(877) 2NARMLO (877) 262 - 7656 (919) 834 - 0070
appraiserlo.com
narmlo.org reversevision.com
informaon@appraiserlo.com
info@reversevision.com

Valerie VanBooven
Next Generaon Financial Services Smart Markeng
Reverse Mortgage Naon 6722 Vista del Mar
Celink
3301 Boston Street Suite A
Reverse Mortgage Servicer
Balmore, MD 21224 San Diego, CA 92037
3900 Capital City Blvd
(888) 973 - 8377 (888) 811 - 0208
Lansing, MI 48906
ngfs.net smart--markeng.com
www.celink.com
traam@aol.com

David Bancro
Omni Home Financing, Inc. Tradion Title Agency
FirstAmerican/eAppraiseIT
901 Calle Amanecer 1991 Union Boulevard
5 Cherry Hill Dr
Suite 150 Suite C
Suite 200
San Clemente, CA 92763 Bay Shore, NY 11706
Danvers, MA 01923
(949) 276 - 2300 (631) 328 - 4410
eappraiseit.com
(800) 281 - 6200 tradionta.com
info@tradionta.com

OnTheLevel
Jerry Wagner
2982 Ora Avo Terrace
Ibis Capital, LLC
Vista, CA 92084
2101 Pacific Avenue
(800) 909 - 1110 Daniel Duplans and Barbara Santner
PH 701
onthelevel@mac.com USAUnderwriters
San Francisco, CA 94115
(800) 566 - 5077 605 SW First Avenue
reversemortgagehomepage.com Ocala, FL 34471
info@ibisrmo.com (352) 482 - 1097
americasunderwriter.com

June 2008 reversereview.com 33

 The Last
THEREVERSE Word
review

Scent of an Industry
by David Bancro

We snk. Currently our industry is

giving off an odor that does not bole
well. It is being packaged at the local
media plants and sold to anybody with
a nose who wants to point blame. The
stench is causing the public to make
unfair comparisons to the recent
mortgage mess and to correlate the
rong odor of a sub-prime carcass with
the Reverse Mortgage Industry.

It is unfair to share the same room but we have to, it is

the only one in the house. What we need is a mixture of
apple-cider vinegar with a touch of tomato juice, the same
concocon I used on my two labs that mistakenly thought a
crier dressed in black and white was friendly. We can bathe
in this mixture as long as our supporng organizaons refute
the polical accusaons on our industry and address the
away on its own. Reverse Mortgages are definitely not
psychology of the consumer during this recession. We need
accepted as a savior by the masses, but they are an answer
to calm down this demonizing by standing together and hold
for many, as well as a viable soluon for the rerement
the hose to wash clean the negavity.
community. Let us raise our expectaons for this year and
reach out not only to the seniors we can help, but also to
It is me for the organizaons which support this
those within our own industry who can make a difference.
industry to step up and do a feel good, public relaons,
markeng and television campaign to awaken the spirit. We
About David Bancro: David Bancro is the President of
need more great stories of lives being changed and homes
OmniHome Financing Inc. Mr. Bancro is a leading industry
being saved. It will feel like warm towels from the dryer and
expert in the originaon of Reverse Mortgages, FHA & VA
will help us get the much needed posive vibe that is long
Government Loans and uses his extensive experience to
overdue. We need our polical leadership to embrace the
help promote the Reverse Mortgage industry. OmniHome
Reverse Mortgage answer, call it a soluon and increase the
Financing was founded by Mr. Bancro and his partners
support from the senior associaons. This will counter the
in 2002 to specialize in Government lending and is one of
naïve momentum, swing the pendulum back and create a
the largest originators of HECM Reverse Mortgages in the
new rerement sensaon.
Country.
It is me for those of us who are serious about making
it in this market to do a beer job in all aspects. As leaders
we need to take care of our companies, train our people
right and bring out the posive we are doing. Together,
let us cut the sgma of failure seniors seem to carry about
Reverse Mortgages and make this choice the soluon. Keep
telling the good story and do not allow this industry to be
compared to the smelly trash can of the recent mortgage
debacle.

We can all recognize the current “scent of our industry”

and we need to stop pretending the smell will simply go

34 June 2008 reversereview.com

 Lender Lead Solutions provides the
stability of a financial giant.
Our parent company, the KBC Group, is a Belgian-based bank with a highly-regarded reputation as a financial
leader. With $41 billion in market capitalization* and a AA-rating, KBC’s strength gives LLS the ability to fund our
own loans, which allows us to offer unique products that are perfect for today’s market conditions.

Partner with the leading Reverse Mortgage wholesale lender and watch your business grow.
But don’t just take our word for it. Come and see for yourself.

To contact Lender Lead Solutions call 888.775.3631 or

visit our website at www.lenderleadsolutions.com
*As of March 17, 2008. Lender Lead Solutions is a division of World Alliance Financial Corp., a member of the KBC Group. ©2008 World Alliance Financial Corp.