and former clients to see if they are either looking for a financial adviser or whether they are unhappy with the one they have. “We never asked that before,” Urwin says, noting that the question is service-oriented because he does not directly benefit from connecting someone with a financial adviser. “We used our database to connect them with advisers. And it became a gold mine.” Urwin is among the reverse mortgage specialists who has shifted his focus to providing a retirement service rather than merely selling a reverse mortgage. That approach has become increasingly important as NRMLA and reverse mortgage industry leaders seek to expand the reach of equity release products, especially with reverse mortgages retaining a negative reputation among some consumers and financial experts. Overcoming Obstacles Brett Bernstein counts himself among the previous skeptics of reverse mortgages. Bernstein is CEO and co-founder of XML Financial Group, which has offices in Maryland, Virginia, Pennsylvania and Colorado. “I was a skeptic like most people because of the fees,” Bernstein says. It took a while until he realized reverse mortgages are no different than any other worthwhile fee-based product or service. “What I had to get over is that the fees are the cost of doing business.” Clients must weigh the pros and cons. As an analogy, he says, people might gripe about paying high fees to obtain concert tickets. But if they want to see the concert, that is part of the cost. “So, as long as you go in with your eyes wide open and you’re educated, that’s the most important thing,” he says. As part of his holistic approach to advising, Bernstein recognizes some clients can benefit from a reverse mortgage while many will not. “Over the years, I have used a reverse mortgage a handful of times,” Bernstein adds. “Every time, it was appropriate for the client, and years later, they’re very appreciative that they got a reverse. But reverse mortgages are not for everyone.” That’s why counseling requirements are important, he says. Mandatory counseling for a federally backed HECM ensures people understand their obligations to cover real estate taxes, insurance and upkeep, even though they will no longer have a mortgage payment. Clients also need to know the other details, such as what happens with the properties after they leave or pass away, he says. And most proprietary reverse mortgages require counseling for the same reasons. “I always say that our job is not to go out and sell a client a product or service. Our job is to listen,” Bernstein says. “And I don’t go out selling a reverse mortgage—I am not paid on it. What I do is listen. So, when a client tells me that their mortgage is killing them and they never want to leave their house, there are certain things that if I’m educated, I can tell them about a reverse.” He mentions one client who tapped her equity in ways that helped her other investments to grow. Another couple used a reverse mortgage to help them age in place in a 55-plus community. “It all comes back to the holistic financial planning process,” he says. “Do they have a plan? Do they understand the risks and goals? You must know the client.” He acknowledges that a lot of financial planning experts don’t understand how reverse mortgages can help. “We as advisers need to educate ourselves,” Bernstein says. “None of my clients came to me about a reverse mortgage, but I can give them advice and they can do as they please. It comes down to advisers being openminded and educated, but they have to listen. God gave us two ears and one mouth for a reason.” Urwin says he, too, was a skeptic at first, even though his formal education was based in financial planning. Rethinking Your Role continued on page 24 Brett Bernstein “It comes down to advisers being open-minded and educated, but they have to listen.” —Brett Bernstein, CEO and co-founder of XML Financial Group REVERSE MORTGAGE /MAY-JUNE 2024 23
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