July-Aug 2020

THE CORONAVIRUS CRISIS has prompted changes in reverse mortgage counseling and forced counselors to rethink how they do their work, and some experts believe that the adaptations might last long after the crisis ends. In Massachusetts, for example, state law required that counseling be in person with reverse mortgage clients, but the state’s leaders amended the law amid the pandemic to allow for electronic counseling. However, the change only was temporary. The counseling process is mandated by federal law to make sure borrowers fully understand all of the details, pro- cedures and responsibilities for taking on a reverse mort- gage. The relational encounter offers nonverbal cues that can give the counselor important insights as to the client’s comprehen- sion and state of mind. Initially in Massachusetts, the face-to-face counseling requirement virtually shut down the reverse mortgage industry after orders were given for people to stay at home, says George Downey, CRMP, founder of Harbor Mortgage Solutions in Braintree. Long before the crisis, Downey and his Harbor associate Brett Kirkpatrick, CRMP, were leading efforts to get the state legislature to allow other means of counseling. And Kirkpatrick makes the com- parison to the Federal Housing Administration’s (FHA) Counseling in a New Reality The COVID-19 Crisis Might Lead to Long-Lasting Changes By Mark Olshaker George Downey New Reality continued on page 26 REVERSE MORTGAGE / JULY-AUGUST 2020 25