advisers, they get it right away and they say, ‘OK, yes. This is a win-win.’” Calamia recently worked with a borrower who was deciding between a forward mortgage and paying cash for a new, smaller home. The borrower, who had been referred by a real estate agent, then took a look at a HECM for Purchase and realized she could keep more of her cash in retirement savings. At the newly established reverse division of CrossCountry Mortgage LLC, forward loan officers are an avenue for growing the HECM for Purchase, according to Kelly J. McCabe, vice president and director of credit for the division. She joined CrossCountry in 2023 to help build the reverse business. “They’ve made a huge commitment because they see that there’s so much potential,” McCabe says. Some of the initial steps for Cleveland, OH-based CrossCountry included certification of some of the forward loan officers and offering specialized loan officer assistants (LOAs). LOAs are trained and specialized HECM loan officers who partner with forward loan officers and assist them throughout the entire loan. “It’s all about educating forward loan officers and helping them better understand this product is a viable option,” says McCabe. “The recent FHA revisions should make the product more appealing.” The company has more than 4,000 loan officers across the U.S. who could be offering HECMs for Purchase to new and existing clients. Favorable Trends While the new rules likely will offer a boost, the HECM for Purchase is expected to benefit from the same trends as the traditional HECM. One is the lack of retirement savings faced by many older adults, who nonetheless may be sitting on significant home equity. They can use a HECM for Purchase to move and downsize without having to add a mortgage payment—but also to cash out their equity for retirement. “This isn’t your first-time homebuyer with three percent down, a gift of equity or doing a first-time FHA loan,” McCabe says. “This is a borrower who understands the process.” Older homeowners are also more mobile. As in past generations, they often move to the Southern states for warmer weather. But after a few years, they may look to move back to be closer to grandchildren and other family members, particularly since the disruptions of the COVID-19 pandemic, industry executives say. Thanks to the proliferation of age-restricted communities, older adults have a growing range of attractive HECM for Purchase continued from page 19 Kelly J. McCabe 20 REVERSE MORTGAGE / MAY-JUNE 2024
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