As I write this note, the dust from the MetLife exit has settled and we are turning to another page in the tale of our industry. The most recent chapter ended with Fortune 50 companies exiting the industry to focus on their core business models, despite the fact that their reverse business channels were performing well.
The short version of the story is that there are ebbs and flows in any cyclical, market- sensitive, highly regulated industry. The reverse mortgage sector is at the tail end of a consolidation phase and reset. It matters less that we do 50,000 versus 150,000 units this year; it’s more important that we continue to evolve as an industry as we work to service a very important demographic in this country. Every year since the inception of our product, we have made changes and refinements as an industry. With new product offerings, new liquidity channels, refinements to counseling, and other essential changes, it’s clear that the program has successfully progressed and adapted to better suit our market.
There are only certain things under our control. When it comes to everything else, we have to take a step back and allow the product to do its work. The reverse mortgage has always been, and will continue to be, a unique tool that can allow seniors to age in place and offset some financial pressures. That’s not going to change, no matter the volume.
Reza Jahangiri Senior Publisher
