{"id":50347,"date":"2026-05-16T01:19:44","date_gmt":"2026-05-15T22:19:44","guid":{"rendered":"https:\/\/mk.gen.tr\/supreme-lendings-john-luddy-on-the-3-deadly-sins-of-reverse-mortgages\/"},"modified":"2026-05-16T01:19:44","modified_gmt":"2026-05-15T22:19:44","slug":"supreme-lendings-john-luddy-on-the-3-deadly-sins-of-reverse-mortgages","status":"publish","type":"post","link":"https:\/\/mk.gen.tr\/en\/supreme-lendings-john-luddy-on-the-3-deadly-sins-of-reverse-mortgages\/","title":{"rendered":"Supreme Lending\u2019s John Luddy on the \u20183 deadly sins\u2019 of reverse mortgages"},"content":{"rendered":"

When it comes to the process of selling a reverse mortgage, John Luddy<\/a> exemplifies the clich\u00e9d phrase, \u201cbeen there, done that.\u201d After 40 years in the mortgage industry, including more than 20 in the reverse channel, there\u2019s not much that surprises the Connecticut-based senior vice president of Supreme Lending<\/a><\/strong>.<\/p>\n

At last week\u2019s Reverse Mastermind Summit<\/a> in Tennessee, Luddy took the stage to offer in-depth advice for loan officers who are new to the segment or attempting to grow their business. His guidance comes at a time when American seniors have mounds of home equity<\/a> but often lack the appetite or knowledge for tapping into it.<\/p>\n

\u201cIf you want the horse to jump the hurdle, you have to do everything right. You slow at the last minute, that horse thinks you\u2019re going to fall off and they stop,\u201d Luddy told the audience during a presentation that was centered on the \u201cthree deadly sins\u201d of reverse mortgages.<\/p>\n

Deadly sin #1: The ghost<\/h2>\n

Even if a loan officer has immaculate preparation and presentation skills when meeting with prospective borrowers, there may be a psychological barrier to overcome.<\/p>\n

\u201cBefore you got there, Jimmy said to Rita, \u2018I don\u2019t care what this silver devil says \u2014 don\u2019t commit. Do not commit. Let\u2019s just get the paperwork. We\u2019ll look it over and we\u2019ll get back to you,\u2019\u201d Luddy explained.<\/p>\n

A proven technique to overcome this hurdle, he said, is for the LO to give the couple time alone. Tell them you forgot a brochure in your car and you\u2019ll be back in a few minutes. While you\u2019re gone, the spouse who\u2019s ready to do business will convince their partner to proceed.<\/p>\n

When the LO returns, they should assume the couple is ready to move forward. Start talking about counseling and other requirements of the loan process. The underlying principle is that people take the path of least resistance. Once you leave the room, acceptance becomes the preferred path versus scheduling another meeting.<\/p>\n

Deadly sin #2: Closing costs<\/h2>\n

It\u2019s no secret that consumers have many myths and misconceptions<\/a> when it comes to the reverse mortgage product set. And while industry professionals have cited high upfront mortgage insurance costs<\/a> as a problem when selling a federally insured Home Equity Conversion Mortgage (HECM) borrowers rarely know specific numbers and may overestimate expenses.<\/p>\n

\u201cHow much does it cost?\u201d is a loaded question when the LO hasn\u2019t given the client a rational cost-to-benefit analysis. \u201cWhen they ask at the beginning of the conversation, they\u2019re a low-information borrower,\u201d Luddy said. \u201cI would propose that most anything they know about a reverse mortgage is negative. So how in the name of God do you expect them, knowing so little, to put those closing costs on the scale?\u201d<\/p>\n

Don\u2019t answer the question directly or avoid it, he said, as this will lower your odds of closing the deal. Start by asking permission to take notes so you can answer all of their questions. Prompt them to ask questions that go deeper than cost and use these as a springboard for the rest of your presentation. Address the costs directly only after you\u2019ve demonstrated the product\u2019s \u201clife-changing value.\u201d<\/p>\n

\u201cBy the time you circle back to the closing costs, you have already changed their life. You opened the door. You\u2019ve painted the picture. They don\u2019t care about the closing costs anymore,\u201d Luddy said.<\/p>\n

Deadly sin #3: Adult children<\/h2>\n

Luddy said that industry professionals often treat family members<\/a> of the client as adversaries in the sales process, but he believes this is an outdated concept. A child or a grandchild is typically sincere and wants to protect their loved one. Still, the LO can face trouble when family dynamics \u2014 e.g., alpha personalities or sibling rivalries \u2014 enter the equation.<\/p>\n

\u201cOur clients today are not as concerned about leaving [their children] the house<\/a> as they used to be,\u201d Luddy said. \u201cBut you have to be skillful in dealing with the adult children, because you\u2019re really walking into a landmine of competition between the siblings.\u201d<\/p>\n

Luddy offered a few techniques for specific situations:<\/p>\n

The alpha rule:<\/strong> Never start your presentation until all family members, especially the dominant sibling, are in the room.<\/p>\n

The mirror technique:<\/strong> When a child says, \u201cI hear these loans are a ripoff,\u201d repeat their words back to them in the form of a question. This shifts the burden of proof to them to validate their statement. Their beliefs are often grounded in misinformation.<\/p>\n

The separate meeting:<\/strong> If the client\u2019s son or daughter calls you about the loan, meet with them privately to sort through the details. You can then present the information to their parent together.<\/p>\n

Protect the parent:<\/strong> Don\u2019t let a hostile child grind through their objections in front of the parent as this creates unnecessary stress. The underlying principle is to respect sincere concern, outmaneuver insincere obstructions and avoid patronizing anyone at the table.<\/p>","protected":false},"excerpt":{"rendered":"

When it comes to the process of selling a reverse mortgage, John Luddy exemplifies the clich\u00e9d phrase, \u201cbeen there, done that.\u201d After 40 years in the mortgage industry, including more than 20 in the reverse channel, there\u2019s not much that surprises the Connecticut-based senior vice president of Supreme Lending. At last week\u2019s Reverse Mastermind Summit…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/posts\/50347"}],"collection":[{"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/comments?post=50347"}],"version-history":[{"count":0,"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/posts\/50347\/revisions"}],"wp:attachment":[{"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/media?parent=50347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/categories?post=50347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mk.gen.tr\/en\/wp-json\/wp\/v2\/tags?post=50347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}