Relating To Your Clients

Make The Connection

In order for one to succeed in the Senior market it is important to understand the social, economic, and emotional wants and needs of this special age group.

Be prepared to spend time educating yourself on the issues that concern them and align yourself with other professionals that might be of help to you and your clients. You can't be everything to everybody.

Subscribe to senior publications, attend senior fairs or events, educate yourself on the important issues concerning the needs of seniors. Always put their interests above you own, look at each client like they were you own parents or grandparents.

Statistics

Below are some statistics that will illustrate the ongoing need for reverse mortgage loans, we are at the beginning of a emerging market that will continue to grow and evolve. As loan originators we need to do the same and educate ourselves to stand out as professionals in the industry.

• The older population (65 ) numbered 36.8 million in 2005, an increase of 3.2 million or 9.4% since 1995.
• The number of Americans aged 45-64 - who will reach 65 over the next two decades - increased by 40% during this decade.
• About one in every eight, or 12.4 percent, of the population is an older American.
• Persons reaching age 65 have an average life expectancy of an additional 18.4 years (19.8 years for females and 16.8 years for males).
• Older women outnumber older men at 21.4 million older women to 15.4 million older men.
• In 2005, 18.5% of persons 65 were minorities--8.3% were African-Americans.** Persons of Hispanic origin (who may be of any race) represented 6.2% of the older population. About 3.1% of the elderly were Asian or Pacific Islander,** and less than 1% were American Indian or Native Alaskan.** In addition, 0.6% of persons 65 identified themselves as being of two or more races.**
• Older men were much more likely to be married than older women--72% of men vs. 42% of women (Figure 2). 43% older women in 2005 were widows.
• About 30 percent (10.6 million) of noninstitutionalized older persons live alone (7.7 million women, 2.9 million men).
• Half of older women age 75 live alone.
• About 445,000 grandparents aged 65 or more had the primary responsibility for their grandchildren who lived with them.
• The population 65 and over will increase from 35 million in 2000 to 40 million in 2010 (a 15% increase) and then to 55 million in 2020 (a 36% increase for that decade).
• The 85 population is projected to increase from 4.2 million in 2000 to 6.1 million in 2010 (a 40% increase) and then to 7.3 million in 2020 (a 44% increase for that decade).
• Members of minority groups are projected to increase from 5.7 million in 2000 (16.4% of the elderly population) to 8.1 million in 2010 (20.1% of the elderly) and then to 12.9 million in 2020 (23.6% of the elderly).
• The median income of older persons in 2005 was $21,784 for males and $12,495 for females. Median money income of all households headed by older people (after adjusting for inflation) rose by 2.8% from 2004 to 2005. Family households headed by older people reported a median income in 2005 of $37,765.
• Major sources of income for older people were: Social Security (reported by 89 percent of older persons), income from assets (reported by 55 percent), private pensions (reported by 29 percent), government employee pensions (reported by 14 percent), and earnings (reported by 24 percent).
• Social Security constituted 90% or more of the income received by 34% of all Social Security beneficiaries (21% of married couples and 43% of non-married beneficiaries).
• About 3.6 million elderly persons (10.1%) were below the poverty level in 2005 which was not statistically significant from the poverty rate in 2004.
• About 11% (3.7 million) of older Medicare enrollees received personal care from a paid or unpaid source in 1999.
• Principal sources of data for the Profile are the U.S. Bureau of the Census, the National Center on Health Statistics, and the Bureau of Labor Statistics. The Profile incorporates the latest data available but not all items are updated on an annual basis.

As you can clearly see there is no shortage of prospects. Seniors are a special blend of knowledge, experience, history and deserve a high degree of professional integrity when contemplating a reverse mortgage. Give it to them straight and cover all points good and bad. Always realize the fears the senior will experience.

A great source for loan originators entering or currently doing business is NRMLA (National Reverse Mortgage Lenders Association) here you will have access to many resources to assist you in selling reverse mortgages. Relating to seniors starts with upholding a code of ethics which is at the core of why we originate loans. Take time to understand and implement these in your business.

NRMLA Code of Ethics & Professional Responsibility

This NRMLA Code of Ethics and Professional Responsibility (Code of Ethics) describes values shared and rules applicable to all members of the National Reverse Mortgage Lenders Association (NRMLA). Under this Code of Ethics, NRMLA Members generally are responsible and will be held responsible for the actions or failures to act of their officers, directors, employees, agents and representatives.

As a condition of membership, all NRMLA Members are required to adhere to this Code of Ethics. Accordingly, each NRMLA Member agrees to observe, maintain and adhere to the following set of values:

Value 1: Fairness
NRMLA Members shall treat consumers with respect and dignity, and in a manner that is fair, reasonable and as they would want to be treated.

Value 2: Confidentiality
NRMLA Members shall appropriately respect, protect, preserve and safeguard the privacy and confidentiality of information obtained from and about consumers.

Value 3: Integrity
NRMLA Members shall act with integrity by adhering to the letter and spirit of this Code of Ethics, which includes disclosing potential conflicts of interest to consumers in a timely basis.

Value 4: Competence
NMRLA Members shall provide services to consumers in a competent manner, acquiring and maintaining necessary and appropriate knowledge, skills and experience to do so, and referring consumers to others who possess such knowledge, skills and experience when they are unable to do so.

Value 5: Diligence
NRMLA Members shall provide services to consumers with diligence and due care, promptly, thoughtfully, in a manner considerate of the interests of consumers and fully in compliance with all applicable legal and regulatory requirements.

Value 6: Professionalism
NRMLA Members' conduct shall reflect positively on NRMLA, the profession and the industry.

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