After last week’s National Reverse Mortgage Lenders Association (NRMLA) Western Regional Meeting in Irvine, California, attendees were generally in high spirits from spending time with their industry colleagues.
But a common topic of discussion among attendees who spoke on-site with HousingWire’s Reverse Mortgage Daily (RMD) was about the session that started the day.
NRMLA co-chairs Mike Kent of Liberty Reverse Mortgage and Jim Cory of Guild Mortgage led an advocacy update, giving attendees a look at the work that goes on behind the scenes to lobby for the reverse mortgage industry in Washington, D.C.
After the update, Cory went deeper into a plan designed to get more eyeballs on the reverse mortgage product from those in the forward mortgage world and adjacent industries — which amounts to an effort to expand the industry’s distribution efforts.
Cory detailed how he and Kent began devising a plan late last year. This consists of “a multiyear, long-term, permanent program where we want to raise awareness of reverse mortgages among related industries, associations and groups,” Cory said at the event.
This will be focused on trying to drive awareness in areas that NRMLA believes can make the biggest difference, with reverse mortgages for purchase cited as a key example. When asked about it on-site, industry participants in attendance were encouraged by the action plan.
“There’s hesitation [around reverse mortgages], because it seems outside the mainstream and that gives people discomfort,” said Ashley Smith, senior vice president of brand and communications at Finance of America (FOA).
“The more we can normalize it and make it mainstream, the better it is going to be for this industry, this category and Finance of America,” she added. “Part of our growth strategy is to make home equity for retirement mainstream, so this is something that we truly believe in and think is important for the industry right now.”
Mark Klein of Citywide Home Mortgage in Westlake Village, California, said that increasing distribution — which would also add competition into the industry — is a necessary step for growth.
“Expanding competition is important,” Klein said. “It helps push growth and product development, and clearly we need a few more products, so I think that would help.”
Reverse mortgages remain a source of much misconception, he added, which demonstrates the need for expanded education.
“What amazes me is how misunderstood this product really is,” Klein said. “I think, as a group, we need to educate the financial and senior communities about what it can really do.”
His colleague, Pattye Zeto, agreed.
“[Expanded distribution] only benefits the client and us,” Zeto said. “That’s because you come up with more competitive products and prices — for us and for them. I think competition is very good and really needed.”
Christina Harmes Hika of Reverse Loan Solutions in San Diego described her own positive reactions to Cory’s statements.
“Hearing Jim Cory talk about some of the changes that they’re bringing, and some of the things that I personally feel, is really important,” she said. “We’ve got to get visibility and to know that the association is really taking that to heart — and taking steps to make that a thing is really encouraging.”
Harmes Hika said she has always been an advocate for bringing more people into the industry’s fold. She has witnessed what it’s like for forward loan officers to understand that reverse mortgages are unique tools in the broader mortgage ecosystem.
“I think just bigger awareness across the board helps all of us,” she said. “I’ve always seen that, so getting some of the bigger players back in the space, I think, would probably be good for everybody — at the end of the day be good for American seniors.”
First Time Home Buyer FAQs - Via HousingWire.com
