Supreme Lending’s John Luddy on the ‘3 deadly sins’ of reverse mortgages

When it comes to the process of selling a reverse mortgage, “If you want the horse to jump the hurdle, you have to do everything right. You slow at the last minute, that horse thinks you’re going to fall off and they stop,” Luddy told the audience during a presentation that was centered on the “three deadly sins” of reverse mortgages.

Deadly sin #1: The ghost

Even if a loan officer has immaculate preparation and presentation skills when meeting with prospective borrowers, there may be a psychological barrier to overcome.

“Before you got there, Jimmy said to Rita, ‘I don’t care what this silver devil says — don’t commit. Do not commit. Let’s just get the paperwork. We’ll look it over and we’ll get back to you,’” Luddy explained.

A proven technique to overcome this hurdle, he said, is for the LO to give the couple time alone. Tell them you forgot a brochure in your car and you’ll be back in a few minutes. While you’re gone, the spouse who’s ready to do business will convince their partner to proceed.

When the LO returns, they should assume the couple is ready to move forward. Start talking about counseling and other requirements of the loan process. The underlying principle is that people take the path of least resistance. Once you leave the room, acceptance becomes the preferred path versus scheduling another meeting.

Deadly sin #2: Closing costs

It’s no secret that consumers have many “Our clients today are not as concerned about