3 minute read
Every professional working in the reverse mortgage industry works doggedly to help the public overcome the misconceptions that have been plaguing our product for 26 years. After all these years, I can’t help but reflect on why we still do this. Yes, we have had some positive PR over the past few years, but we are far from where a 26-year-old industry should be.Like you, I’ve sat with skeptics at many kitchen tables. I’ve overheard misinformed seniors conversing at my local coffee shop. I’ve fielded questions during the holidays from relatives who can’t seem to grasp the facts. Faced with such overwhelming negativity, we work to explain and educate, one person at a time.
I have written numerous articles for my local press combating the misconceptions and focusing on how the program can help; I’m sure many of you have as well. I’ve also had the opportunity twice within the last six years to testify before committees in the Rhode Island Senate and House to clarify and rewrite statutes so that the program could thrive here for those who stand to benefit from it. I know many of you reading this have done the same in your state, and I thank you.
Still, despite similar efforts by many, our penetration rate of those who are eligible for a HECM is below 2 percent. We are not doing a good enough job educating the public.
Our recent focus has been educating financial planners, elder attorneys, CPAs and the like, and while that is a great start, we are behind the times. My challenge to the industry is to get more involved locally, beyond what we are currently focusing on.
Along with several similar meetings and conferences this past year, I recently attended a stakeholders meeting for the Rhode Island Division of Elderly Affairs as they presented their federally approved Strategic Plan on Aging. It has become evident to me that there exists a resounding concern among seniors about their ability to age in their homes. Still, many are unwilling to explore the solution a HECM can provide. Why? Popular misconceptions continue to color their views on the product.
To combat this, we need to build an alliance that will work together to overcome the industry’s challenges and support broader awareness of the importance and benefits of our product.
A few years back, a handful of lenders got together to build awareness and they did a good job. But they only targeted a few select areas, and since then no effort has been made to expand on that message in other parts of the U.S.
We need to actively pursue opportunities and partnerships that can allow us to further our mission to educate the public. I did some research on two powerful associations for some ideas. The National Association of Realtors (NAR) offers consumer outreach through Real Estate Today, HouseLogic and a Consumer Advertising Campaign Program. The advertising campaign includes TV, radio and print, and encourages local companies to coordinate advertising and outreach efforts with the national campaign to reinforce the message and help strengthen the brand. The National Association of Home Builders (NAHB), which gets more than 150,000 visitors each month to its website, offers opportunities to market your company with a host of many digital media products, including e-newsletters. Perhaps these associations could be useful to individual companies and add to the collective message about the HECM’s benefits while promoting their own services.
I believe if we each pursue all channels available to us, we can make a difference. If every professional in this field dedicates themselves to the mission to advance the cause, we can move the industry forward, strengthen our brand and ultimately help many more seniors through the power of a HECM.
