Reverse Mortgage Funding president on unlocking a trillion-dollar market

DP: The most important consideration for every HECM loan originator is to see themselves as a home equity product educator. Reverse mortgages are specifically tailored for older individuals to meet their changing needs and goals, but, oftentimes, older individuals don’t know about all the options available to them. As an industry, our goal is to help seniors and their advisors understand how to use home equity as a strategic part of retirement planning. This flexible solution can be used to finance home improvements, pay off pre-existing debt, insulate a retirement portfolio, or even purchase a new home. As consumer interest in HECM loans grows, it’s important for each HECM originator to be their clients’ trusted home equity finance educator.

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MPA: What is your outlook on the prospects of the reverse mortgage space this year?

DP: The population of older homeowners with a first mortgage is growing by over one million per year, and, because of this, I believe we will continue to see reverse mortgages grow in demand. Additionally, the number of older homeowners looking for smart financial solutions that allow them to age in place continues to increase. The current senior demographic has the highest home equity levels in history, and we will continue to see more of them tapping into this equity to fund retirement. We’re also seeing more consumer awareness of HECM products. RMF, our trade association NRMLA, and our peers in the industry will continue to prioritize education campaigns for consumers and their advisors. Lastly, product innovation will play a major role in the future of financing for older homeowners. As RMF expands its proprietary Equity Elite product, this will allow us to continue to fill the void left by the FHA reverse mortgage loan.

While no-one can truly predict where the economy will be in the short or long term, we do know that retirees are very concerned about inflation, volatile markets, and general economic uncertainty. As we’ve seen the past few years, those in the industry that adapt the quickest to market shifts and consumer needs will lead the industry’s growth.