In Reverse Newer/Older Generations Are Our Future By Thomas A. Barstow INDUSTRY LEADERS HAVE known for a long time about the vast untapped potential that reverse mortgages offer—the millions of Americans who either don’t know about reverse mortgages or remain skeptical. That situation has made industry professionals increasingly focused this year as “turmoil” continues to be the operative word. In this issue of Reverse Mortgage magazine, sales and marketing experts discuss how they intend to tap that potential through modern means of communication and an all-out push to boost education about how these products can help people live fuller retirements. These ideas are outlined in the cover story Marketing for the Future (p. 20). Christopher Moschner, chief marketing officer for American Advisors Group, talks about changing the conversation. Instead of reverse mortgages being marketed as an end-of-retirement solution, they could be discussed as a way to finance a new stage in life. “Seniors may have 20 or 30 years ahead of them. What role can our products play in that journey?” Moschner tells writer Joel Berg. Such pitches focus on how the products are here to stay and how they are a viable way to fund retirements. That means educating loan originators—as well as key referral partners, such as retirement planners—in the numerous ways a reverse mortgage can help someone, the experts point out. Perhaps companies that harness digital marketing tools, such as streaming ads, can reach individuals with specific pitches based on their digital habits. Creative and humorous ads might appeal to newer/older generations. I use the phrase “newer/older” for a reason. It recognizes a reality that is increasingly apparent: The people who grew up with technology are at or near retirement. And those who are digital natives—people born just before or during the advent of social media— are our future customers. And maybe reverse mortgage professionals can boost their efforts to show financial planners how and when a reverse mortgage might work for their clients—or more importantly when the products will not help. None of this is all that new. But the current economic conditions of high interest rates and rising inflation are forcing companies to find new ways to increase the visibility and acceptability of their products. An all-out sales and marketing effort now might stick for generations to come. In his column Let’s Stop Running in Cement Shoes (p. 6), Chris Downey notes that market penetration for reverse mortgages hasn’t really changed in the decades In Reverse continued on page 4 REVERSE MORTGAGE / MARCH–APRIL 2023 3
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