On the Docket: A New Era for Reverse Mortgages
There have been four recent developments on the HECM front:
Financial assessment finally became an integral part of the HECM origination process, in an effort to try to ensure that these loans are made to homeowners who have a likelihood of successful use of the tool to preserve their ability to stay in their home as they age.
The non-borrowing spouse dilemma, an issue that has confused many current and would-be borrowers and their families, generated substantial adverse press and brought closer regulatory scrutiny has been addressed—for the most part—by HUD’s most recent policy.
The CFPB has fired a shot across the bow, telling the reverse mortgage industry it doesn’t like the way we advertise our product.
Finally, in just the past two months, 600,000 boomers have entered the age cohort of HECM borrowers. We are turning 65 at the rate of 10,000 per day. Nearly 80 percent of us own our homes, according to a National Association of Realtors survey. The NRMLA/RiskSpan Reverse Mortgage Market Index, a quarterly measure of relative movement in home equity possessed by homeowners age 62 and older, has nearly returned to its pre-recession level.
Together, these four items lead us into a new era for the reverse mortgage industry, an era that offers enormous opportunity.
This new era calls for a sophisticated industry with a workforce that is knowledgeable and intellectually curious about demographic trends, issues of health and welfare, personal finance, money management and many other matters associated with serving an aging clientele. On top of that, we need reverse mortgage professionals with empathy and compassion for our clients, who are able to understand that no two households are alike and that at the stage of life many of our clients deal with us, they need care, concern, trustworthiness, accessibility, responsiveness and respect.
There is a lot for all of us to learn to become the sophisticated industry we must be to thrive and prosper from the market opportunity blossoming before us. It’s time to embrace the future and move forward. Building a stronger, smarter, more insightful reverse mortgage industry has been part of NRMLA’s mission from the beginning. You can count on NRMLA to use all of our channels, our conferences, our committees (including a new education committee just created by the Board at its June meeting), the Certified Reverse Mortgage Professional (CRMP) designation, our publications, communications and websites (including a new soon-to-be launched member website) to help build the knowledge our industry’s professionals will need. -Peter Bell, President and CEO
Upcoming Events: It’s Not Too Early to Plan
Summer may seem like too early a time to plan for November—but not if you want to get the best registration price and airline fare for NRMLA’s Annual Meeting & Expo in San Francisco November 16-18.
With the HUD changes finally behind us, this year’s event, “The Golden Gate to Retirement Security: Reverse Mortgages & Funding Longevity” looks ahead at the new era for and new market for reverse mortgages.
In addition to our provocative, informative sessions and the opportunity to obtain your CRMP and NMLS credits, this year’s conference includes a special Thanksgiving community service event providing meals at the Curry Senior Center and the 2nd Annual Reverse Scramble Golf Tournament at the historic Presidio Golf Course. Registration is now open.
From Washington: HUD Explains FA Requirements and Other Policy Changes to Counselors HUD-approved HECM counselors are now required to explain to prospective clients that they will be undergoing a financial assessment, as well as emphasize the importance of keeping current on property charges, but the mortgagee, not the counselor, will conduct the assessment and determine whether a life expectancy set-aside is needed, according to guidance published this week by HUD.
HUD Notice H 2015-05 informs counselors of recent HECM program updates to policies and requirements addressing Financial Assessments, Property Charges, Lien Seasonings, Non-Borrowing Spouse Certifications, Deferral Periods, Partially-Funded Life Expectancy Set-Asides and Servicing Fee Set-Asides. The updates and relevant guidance were announced in mortgagee letters (ML) 2014-21, 2014-22, 2015-02 and 2015-06.
Counselors are reminded that they must use the Reverse Mortgage Analyzer software during every counseling session and continue utilizing the Financial Interview Tool (FIT) to determine if clients qualify for other federal and state benefits.
Cory, Hultquist to Lead Education Committee NRMLA Co-Chairs Joe DeMarkey and Reza Jahangiri appointed Jim Cory, of Live Well Financial, and Dan Hultquist, of Open Mortgage, LLC, to co-chair the new Education Committee.
The Education Committee will help bolster the educational foundation of reverse mortgage industry participants through curriculum development and exploring alternative delivery channels.
Cory is a senior vice president at Live Well and a 18-year veteran of the reverse mortgage industry. He is a Certified Reverse Mortgage Professional who serves on the NRMLA Board of Directors, the Standards & Ethics Committee (as vice chairman) and the Policy Committee. He also served on the Executive Committee and was Treasurer of NRMLA from 2011 to 2012.
Hultquist, also a CRMP, is a branch manager at Open Mortgage and former Director of Training at Generation Mortgage Company. Before joining Generation, he was a HUD-approved HECM counselor with CredAbility. Hultquist serves on the Independent Certification Committee, which oversees and administers the CRMP designation.
New CRMP Courses The Independent Certification Committee, the governing body that oversees the administration of the Certified Reverse Mortgage Professional designation, has approved the following online courses for continuing education credits:
Urban Financial of America
- Intent and Creation of the HECM Program (1 credit)
- Financial Assessment: Willingness and Capacity (1 credit)
- Financial Safeguards for Older Adults (1 credit)
- Reverse Facts (1 credit)
- Marketing and Ethics (1 credit)
To view a complete list of approved courses, visit nrmalaonline.org.
