RM HIVE Meeting 6-17-25

Meeting summary

Quick recap

This meeting was a CLA (Certified Liability Advisor) group call where members shared recent successes and discussed strategies for working with financial advisors. John led the discussion as members shared their experiences, including Chris's conversations with advisors about multi-generational planning and Kent's approach to framing reverse mortgages as helping clients manage both sides of their balance sheet. Brady Mullen, CFP® shared his background as a former financial planner who now works for Cross Country Mortgage building out their reverse mortgage team, and discussed effective strategies for presenting to financial advisors including using continuing education credits as an incentive. The group discussed challenges with Edward Jones advisors who face corporate restrictions on discussing reverse mortgages, with members sharing tactics for working around these restrictions. John presented a new HECM calculator tool that was developed in collaboration with Todd and Brady Mullen, CFP®, which members were encouraged to test and provide feedback on. The conversation also touched on demographic trends showing increased acceptance of reverse mortgages as the population ages, and the group discussed various strategies for positioning reverse mortgages to financial advisors including evidence of success stories and addressing common objections about costs versus selling a home.

Next steps

Chris

• Share the NIH link or study on fall statistics with John and the group.

John

• Check with Todd on the status of CFP board CE approval and consider reactivating/instructing the group on offering CFP CE-credited content.

• Post the updated presentation deck and relevant fall statistics/presentation in the show notes or shared drive for group access.

• Share the link to the HECM Illustrator/Calculator in the chat or appropriate group resource location for Brady Mullen, CFP® and others to access.

• Look for and share the fall statistics presentation/material from Nirmala (or prior events) with the group.

Julie

• Send address to Chris (for follow-up, as discussed at end of meeting).

• Complete and schedule the online class as planned, rolling into the next quarter if needed.

Collaboration

• All (especially Dan, Julie, Chris): Continue to test and provide feedback on the new HECM Illustrator/Calculator tool shared by John/Todd, including backtesting against other tools.

• All: Explore offering CE (Continuing Education) classes for financial planners, especially if not currently doing so, as recommended by Brady Mullen, CFP®.

• All: Reset and revisit 90-day goals (e.g., BNI outreach for Dan) with the new quarter approaching.

Summary

Financial Industry Background Sharing Session

The meeting began with introductions and casual conversation among participants including John, Chris, Kent, and Brady Mullen, CFP®. Kent shared his background, explaining that he worked in mortgage since 1993, left the industry after the 2008 meltdown to work at Merrill Lynch and Morgan Stanley, and returned to mortgage in 2012 before eventually relocating from California to Austin, Texas. Brady Mullen, CFP® introduced himself as a CFP with 20 years of experience in financial planning who sold his practice in 2021.

Real Estate Financial Planning Discussion

Brady Mullen, CFP® shared his background in financial planning, explaining how Wade Pfau's book inspired him to focus on helping people understand the financial implications of real estate decisions. He discussed his work with his brother creating educational content, including two books about real estate and reverse mortgages, and his current role at Cross Country Mortgage building out their reverse mortgage team through presentations and continuing education for professionals. The conversation ended with Brady Mullen, CFP® mentioning his connection to Bruce Simmons from previous industry events.

Reverse Mortgage Adoption Challenges

John and Brady Mullen, CFP® discussed the challenges of convincing traditional loan officers to take reverse mortgages seriously as a necessary tool. Brady Mullen, CFP® explained that while he spends time talking to loan officers, realtors, and prospects, he doesn't originate loans himself and wouldn't know how to process a completed application. The conversation ended with John introducing a discussion about sharing success stories and challenges among advisors, mentioning an upcoming discussion about a "done date" initiative that Todd had recreated.

Multi-Generational Financial Planning Insights

Chris shared insights from conversations with three advisors about the importance of proactive multi-generational financial planning, particularly regarding college savings and inheritance wishes between adult children and their parents. He highlighted a specific example where adult children hadn't discussed their wishes with their parents, revealing different preferences than what the parents assumed. The discussion also touched on how younger advisors could expand their client base by offering services to both generations, particularly helping employees with 401k rollovers.

Reverse Mortgage Advisor Strategy Discussion

The group discussed strategies for approaching financial advisors about reverse mortgages, focusing on identifying clients who may be on an inappropriate glide path due to inflation or lifestyle expenses. Kent suggested asking advisors if they have clients withdrawing more than a safe amount annually, while Brady Mullen, CFP® agreed with the framing approach. John shared a current case involving a client spending $350,000 annually who will receive a $2.2 million reverse mortgage. The discussion concluded with an exploration of how to address advisors who claim their clients don't have mortgages, with the group considering questions about client demographics to demonstrate the relevance of their services.

Reverse Mortgage Advisor Strategy Discussion

The team discussed challenges with approaching financial advisors, particularly Edward Jones agents, about reverse mortgages. Chris reported pushback from Edward Jones agents who are concerned about corporate restrictions on discussing reverse mortgages, though they continue to refer forward mortgage business. Dan suggested starting a drip campaign targeting the Edward Jones CEO about fiduciary liability risks, while Brady Mullen, CFP® noted that Edward Jones is making efforts to help advisors become CFPs, which may influence future attitudes toward reverse mortgages. The discussion included strategies for framing conversations with financial advisors, with Brady Mullen, CFP® suggesting focusing on having a conversation about reverse mortgages rather than directly selling the concept.

Reverse Mortgage Advisor Engagement Strategies

Brady Mullen, CFP® discussed strategies for approaching financial advisors about reverse mortgage products, emphasizing the use of continuing education (CE) credits as an effective way to engage them. He suggested framing the discussion around providing answers to questions that advisors will inevitably receive from their clients, rather than directly promoting the product. Brady Mullen, CFP® also highlighted the advantage of offering CE credits, as it creates an expectation of a formal presentation, allowing for a more structured and impactful discussion about the product's value and features.

CFP Certification and Reverse Mortgages

The group discussed CFP board certification for instructors and the potential to reactivate this approval, which costs a few hundred dollars for the non-profit and similar amounts for individuals. Kent shared a success story about a reverse mortgage case involving a client with a medical diagnosis, emphasizing how evidence of such success stories can be powerful marketing tools. John mentioned a recent reverse mortgage transaction that originated from a Bank of America advisor, noting that the industry appears to be "thawing" as more advisors are becoming open to reverse mortgages despite previous resistance.

Reverse Mortgage Market Trends

The group discussed the thawing of reverse mortgage markets, with John and Kent noting that demographic changes, particularly Gen X reaching retirement age with insufficient savings, are driving this trend. Julie reported increased attendance and interest in her classes since switching from reverse mortgages to "using equity wisely in retirement," though she faced challenges with a recent client who had credit issues. The discussion concluded with John sharing strategies for explaining the benefits of a LEASE program, including how the growing funds set aside can actually cover more than the planned amount for taxes and insurance.

Reverse Mortgage Cost Calculator Tool

John presented a tool that Brady Mullen, CFP® and Todd had developed, seeking feedback from the team. Kent praised the tool's simplicity and clean interface, particularly noting its ease of use in Excel compared to web-based alternatives. John explained key features including the ability to fetch actual CMT rates and calculate costs, while highlighting the importance of showing net worth impact over time, particularly in response to concerns raised by Todd's friend Rocky about reverse mortgage costs versus standby line of credit options.

Reverse Mortgage Considerations and Challenges

The group discussed challenges and considerations around using reverse mortgages versus selling homes, with John and Brady Mullen, CFP® comparing costs and benefits. Kent shared insights about how moving to a new home increases the risk of falls among seniors due to loss of muscle memory, and Brady Mullen, CFP® noted that poor hearing is another significant factor in falls among seniors. The discussion concluded with John introducing a new HECM calculator tool and the group briefly discussing various software tools they use for reverse mortgage calculations, including Reverse Plus and FAR Illustrator.