The Challenges and Opportunities in Marketing Reverse Mortgages: Marketing Reverse Mortgages in Today’s Landscape

In the realm of financial services, reverse mortgages often spark intense debates and discussions. Educating consumers about this financial product can be a daunting task for individual loan originators and brokers. However, when you’re responsible for the marketing strategies of some of the industry’s leading lenders, the challenges can multiply in scale.

Eddie Herda, a seasoned professional with extensive experience in both reverse mortgages and marketing, recently joined loanDepot as VP and Creative Director of Brand Strategy. Previously, he played a pivotal role at American Advisors Group (AAG), where he contributed to memorable campaigns featuring iconic spokesman Tom Selleck, who has become the face of reverse mortgages for many, even beyond AAG’s domain.

Eddie Herda shares his insights on the realities and challenges of marketing reverse mortgages on a national scale and offers valuable advice for loan originators and brokers looking to enhance their marketing efforts.

Navigating the World of Reverse Mortgages

Herda’s journey into the world of reverse mortgages began as a copywriter before rising through the ranks to assume creative director positions. He started his mortgage industry career with Mr. Cooper, where he played a pivotal role in the company’s rebranding from Nationstar to Mr. Cooper. However, it was during his tenure at AAG that he delved deep into reverse mortgages.

Before joining AAG, Herda was already well-versed in marketing products targeting seniors, particularly those with tarnished reputations. He recalled his initial foray into the senior retirement product landscape while working at the ad agency Crispin Porter + Bogusky. Here, he served as a creative director on the MetLife account, focusing on annuities.

Reflecting on his career trajectory, Herda mentioned, “My experience is mostly working at agencies throughout my career.”

His journey at AAG began when he was introduced to the company’s chief marketing officer by AAG’s then-CEO. This meeting shed light on the challenges the company and the broader industry faced in terms of branding. Herda initially joined as a consultant but later assumed a more significant role in marketing. He continued his tenure at AAG until it was acquired by Finance of America Companies (FOA) in the recent past.

Key Takeaways from Eddie Herda

During the interview, Eddie Herda shared valuable insights for loan originators and brokers engaged in marketing reverse mortgages:

1. Embrace Innovation and Technology: Herda emphasized the importance of embracing new technologies and digital tools in marketing efforts. These tools are just as accessible to individual originators and small businesses as they are to major players. Leveraging technology can enhance the customer journey and facilitate a more informed decision-making process.
2. Understand the Customer Journey: The customer journey doesn’t begin and end with a single marketing piece. In today’s digital age, customers often conduct extensive research before making a decision. They explore various platforms, including social media, YouTube, and competitor websites. Loan originators and brokers should be aware of this circuitous customer path and provide ample information at every touchpoint.
3. Tailor Your Message: Herda stressed the importance of crafting tailored messages that resonate with the audience. Rather than focusing solely on product features, it’s essential to create compelling narratives that captivate customers. Adapting your message to address the unique needs and concerns of your target audience can significantly impact response rates.
4. Customer Listening and Research: Herda highlighted the value of conducting research and engaging in customer listening exercises. Focus groups and research projects helped him gain a deeper understanding of customers, prospective customers, adult children, financial professionals, and even skeptics. Insights from these exercises influenced marketing strategies and messaging.
5. Addressing Skepticism: Herda recounted an experience where participants, initially skeptical about reverse mortgages, expressed interest in exploring the product further after a focused discussion. This underscores the importance of addressing skepticism through effective communication and education.

In conclusion, Eddie Herda’s extensive experience in marketing reverse mortgages provides valuable lessons for industry professionals. By embracing technology, understanding the customer journey, tailoring messages, conducting research, and addressing skepticism, marketers can navigate the complex landscape of reverse mortgages more effectively.