July-Aug 2020

“I am a huge proponent of mandated counseling, and I use it to my advantage,” Kennedy says, adding that education doesn’t need to be done in-person. “Face- to-face counseling is an unnecessary burden to put our seniors through with or without a global pandemic. They are more than capable of making a well-informed decision via the phone if the counselor takes their time to answer their questions and concerns in a clear and precise manner.” Sless thinks that the pandemic has shown that other requirements are overly burdensome, such as require- ments for second appraisals. “We have multiple loans that require a second appraisal,” he says. “Both borrow- ers have completed substantial upgrades to the interior of their homes. Neither are comfortable having an appraiser in their home, yet they do not want a drive-by appraisal because the upgrades at that point won’t be considered in the value. [The U.S. Department of Housing and Urban Development] should immediately suspend all second appraisal requirements.” In New York, where the pandemic hit the hardest, the crisis coincided with new guidelines that took effect on March 5 and that put a damper on loans, Kennedy says. “We have an entire population of senior homeowners that cannot entertain the use of home equity during a historic unprecedented global pandemic,” he says. “These seniors may have lost their jobs, watched their portfolios erode and diminished their savings accounts. They are being denied access to an alternative financial tool that could assist them in creating another source of cash flow during unprecedented times.” He suggests that New York should have delayed the new guidelines until the market stabilized. Kennedy also points out that interest in the loans has been high because of what reverse mortgages have to offer. “Senior homeowners and financial planners are coming out of the woodwork because of their concerns regarding sequence of return risk,” Kennedy says. “They are more open to listening about alternative financial tools to help mitigate portfolio loss and create tax-free cash flow.” Lessons for the Future Sless thinks that borrowers are ready to explore new options using the technologies that people learned to cope with the crisis. “This generation of older Americans is more than capable of using technology to ultimately help provide them with a better client experience,” he says. “It’s still important to understand, though, that this is a loan that requires a lot of education and hand-holding. Those who find the right balance between old and new school will be positioned to thrive moving forward.” Companies keep adapting, as well, several observers note. BradOlena, director of marketing and business devel- opment for Summit Technology Group near Harrisburg, PA, says his company normally helps businesses—partic- ularly banks, lending institutions and other financial ser- vices companies—transition to cloud computing. During the pandemic, the company provided members of the American Bankers Association with complimentary cloud desktops for six months. The company also has been assisting with e-signing processes, as well as helping clients properly use video con- ferencing or other tools being used to work from home. “We are all human beings, not machines, and the need for interaction and collaboration is essential,” Olena says. “Video conferencing platforms are a great tool to keep positive momentum with clients and colleagues while working remotely.” He cautioned that companies need to be careful when making the transition to working at home. “When you shift from a controlled office environment to a mix of locations, including home-based users, there are a variety of hurdles that can present themselves,” Olena says. “The support and training definitely increased during this crisis, as entire teams are now remote for long periods of time, whereas previously it was smaller numbers and less prevalent.” He encourages clients and partners to “not think of this crisis as a start and end date.” “Our recent experiences have shown the importance of being flexible and willing to adapt quickly to exter- nal pressures and changes in our economy,” Olena says. “A new norm has been created, and organizations need to think strategically for the long-term on how they can structure their organizations to maintain operations and productivity in any environment. “Cloud infrastructure and technologies have been around for some time now, but it is an essential part of any business in order to adapt quickly and thrive during times of crisis—but also innovate,” he adds. Tech to Connect continued from page 23 24 REVERSE MORTGAGE / JULY-AUGUST 2020