July-Aug 2020

Homeownership and Opportunity for People Everywhere (HOPE) program. “Some prospective borrowers are over 100 miles from the closest counseling agencies,” Kirkpatrick says, “so they’re being potentially excluded. The FHAHOPE program also had an in-person counseling requirement, but that was suspended because of COVID-19.” In response to calls to change the requirement for reverse mortgages, Massachusetts Governor Charlie Baker signed a law in April allowing reverse mortgage applicants to receive counseling remotely, either by tele- phone or some means of video conferencing. But the alternative was to only remain in effect until the state of emergency in Massachusetts terminated. That started loan originators and counselors looking ahead. Face-to-face counseling is best, says Jennifer Cosentini, housing direc- tor of Cambridge Credit Counseling Corp. in Agawam, MA. “But phone counseling is next,” she says. “There is really no issue. If you know the mate- rial and the issues, there’s no reason you can’t do it over the phone.” Technically, Vermont and North Carolina also require in-person Home Equity Conversion Mortgage (HECM) counseling. But in Vermont, telephone coun- seling is allowed with a U.S. Department of Housing and Urban Development-approved counseling agency. “Since HUD must approve the agency anyway, that’s a pretty low bar to get over,” says Kirkpatrick. “And in North Carolina, without repealing the law, about four years ago they essentially said, ‘We’re no longer going to enforce it.’” The issue of counseling beyond the crisis has impli- cations beyond these three states. With enforced distanc- ing for homebound seniors, who represent the cohort of the population most vulnerable to the virus, counseling services can be valuable beyond making sure applicants understand the loan. Counselors can pick up on other needs or concerns that they could relay to the proper authorities, responders or caregivers. “I think, whether we like it or not, we’re being pushed into a new normal,” Downey says. “Telephone counseling has been the norm, but it’s time to introduce video confer- encing as an alternative.” NRMLA President Steve Irwin says teleconferencing has been one of the new ways companies have been effec- tively connecting with clients. “We are realizing technol- ogies that make it possible for a senior homeowner in Virginia to have children in Miami and Texas join in,” he says. “That has to be further explored and offered.” Technology and Seniors Irwin says seniors can use the updated rules around in-person counseling as an opportunity to defy stereo- types about their abilities to use technology. “Often, seniors are described or lumped in one huge category, and that’s not the case,” he says. “We’ve got to get away from thinking of seniors as one profile. It becomes a question of what an individual wants and feels comfort- able with.” Cosentini says that sometimes you find 80-year-olds who are great with technology and some 62-year-olds who are not. “There’s no way to generalize,” she notes. Downey also observes that most towns and cities have numerous resources to help residents learn new technolo- gies, such as video conferencing. And a number of indus- tries and services have gone digital, he adds, such as tele- medicine and courts. “The difficulty has diminished quite a bit,” he says. “In theory, face-to-face counseling is better to evaluate the borrower. With the technological advances, the [digital method] is not exactly the same, but it’s darn close. With telemedicine usage on the rise and court con- ferencing being conducted online, we’re seeing these appli- cations becoming more common across the board. There’s always going to be that last senior who can’t be accommo- dated, but no one is saying the face-to-face option should be eliminated.” Irwin suggests that consumer protections also could remain in place with more use of technology. “Can we keep and heighten consumer protections while allowing more efficient and user-friendly tech? I would suggest that we can,” he says. Downey believes legislators might be hesitant toward permanently broadening the possibilities for HECM Brett Kirkpatrick Jennifer Cosentini New Reality continued from page 25 26 REVERSE MORTGAGE / JULY-AUGUST 2020